National Land Agency BPN - Republic of Indonesia (1995):
International Workshop on the Implementation of Rural Land Consolidation

7. Summary of Land Consolidation of Estate Crop Partnership Pattern using KKPA Facility in Ogan Komering Ulu, South Sumatra, Indonesia

by Drs. H. Moh. Yahya and Prof. Makmoen Soeleiman, S.H.

7.1 Introduction

Since the Fifth Five-year Development Plan (Repelita V), the South Sumatera Province has established 1 l strategic projects, and one of them is estate crop development, which has a target of about 2.5 million hectares.

By this year, there are about 963,123 hectares of people plantation and about 1,535,876 hectares have been reserved for estate crop, with planting realization about 249,272 hectares.

Concerning the sources of fund, there are two sources, namely state and private/ corporation. From the private sector, estate crop with partnership pattern using KKPA facility in South Sumatera has developed successfully because it decreases social conflict of land-ownership in the project area, especially in relation to land exemption.

The problem faced by the estate corporation is that the irregularity of the shape and locations that cause difficulty in developing the estate area according to the provision of estate technology development. Beside, it needs enough fund to prepare plasma estate for the farmers. There are about 12 estate corporations with the area about 273,876 hectares and plasma area about 163,876 hectares use partnership pattern by using KKPA facility require land consolidation.

To solve problem above, land consolidation of the plasma area has been implemented by using credit facility from the Bank (KKPA).

Land consolidation is defined as a land policy associated with the rearrangement of land tenure and land use as well as the effort of supplying land in accordance with the development needs, with the aim to increase the quality of the environment and to conserve the natural resource by involving the active participation of the farmers. The purpose is to utilize land optimally, match and balance and sustainable by improving land use efficiency and productivity of the estate area.