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

7.2 The Implementation of Landreform Concerning Land Consolidation of Estate Crops

The implementation of landreform concerning land consolidation has been stated in article 11 and 12 of the Government Regulation Number 224 year 1961 (PP. 224/1961). The explanation of those articles has given a signal about the requirement on agriculture land consolidation, either in the estate area or fishpond by using cooperative institution; however, until now there is no special regulation exists.

In connection with the development of the several patterns of state crops development, the Governor of South Sumatera requested to the estate corporation that will invest to the province to use partnership pattern ("Adopted Child, Adopted Father"). In partnership pattern, farmers take a part in the estate management, while estate corporation uses farmers' land and gives the opportunity for the farmers to work in the estate crops area. In using KKPA facility, one of the provision is to become member of cooperative. The land of landowner will be rearranged according to estate technique, and furthermore should follow the bank regulation. In dealing with land tenure and land use, there should be clear regulation, because land consolidation is multisectoral and involving government, private and farmers (landowners).

By this time the regulation as a reference in the implementation of land consolidation in estate crop is the regulation from Head of National Land Agency Number 4 year 1991, and the guidance according to government regulation Number 224 year 1961 and Regulation of Head National Land Agency Number 4 year 1991. The subject of land consolidation is landowners or people who work on the states land, and the object is land with certain right or states land.

Concerning the subject and object, there are two types of land consolidation of the nucleus estate smallholders and land consolidation through partnership pattern by using credit facility from the Bank. The two need different treatment in dealing with the implementation of land consolidation.