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

7.3 Land Consolidation of Estate Crop with Partnership Using KKPA Facility in Ogan Komering Ulu Regency

PTP Minanga Ogan has been chosen as a model by some consideration that estate cooperation had land reservation in 1982, realized development of the estate, and got a Right to Use certificate (HGU) in 1985 for the area of 6,393 ha. In the process of land exemption, there was no constrain because the exemption was implemented by custom approach and carried out professionally. Moreover, when there was a landowner who had land in the area of land reservation but did not want to be exempted, he still had a chance to become plasma, and called "PIR NEBENG".

In facts, PIR NEBENG stimulated farmers surrounded location to become members of cooperative, to called "KUD MINANGA OGAN". KUD MINANGA OGAN got the location permit from the National Land Agency Office of Ogan Komering Ulu in 1994 for the area of about 6,000 ha.

It was the fact that there were some irregularities of shape, area and location of land property of KUD members; on the other hand, estate corporation want to have regular estate area according to estate technique requirement. Therefore, land consolidation of the estate area should be implemented by using credit facility from the bank (KKPA).

Cooperative of Village Unit (KUD) Minanga Ogan in cooperation with the National Land Agency Office in Regency conducted land consolidation in the area of plasma about 3,000 ha. This activity was started by formulation of coordination team of land consolidation and implementation unit in the regency. Those two teams had been formulated through the Decree of the Head of Regency (Bupati). Based on those decrees, the implementation of land consolidation of estate crop could begin with formulating the activity plan and the costs.

Land consolidation of estate crop stage is located in Bandar Agung Tanjung Manggus village, Subregency Peninjauan with the area about 3,000 ha. This location has been chosen by several considerations, namely spatial planning, village conditions (least developed village), landownership and land condition (land capability for estate).

The implementation of land consolidation of estate crop refers to the Head of National Land Agency Regulation Number 4 year 1991. According to this regulation there are two stages, namely preparation stage and implementation stage. The first stage consists of several activities to prepare administrative procedure, to conduct the extension, to seek an agreement and to determine the location for land consolidation, and to determine subject and object to prepare the cost.

Implementation stage consists of surround area mapping, detail lots mapping, topography mapping, land use mapping, block design, spatial design, release of land right from landowner, confirmation of land consolidation object, lots measurement, determination of land redistribution and land certification.

The preparation stage has been implemented well, and in this stage the participation of farmers as KUD members and PTP Minanga Ogan was very great, where the manager of KUD Minanga Ogan and PTP Minanga Ogan after they arranged intensive approach with the people by using custom approach followed by simple application in the field such as PIR Nebeng, the corporation and KUD had prepared supporting data for further land administration process.

The implementation stage was conducted by the National Land Agency of Regency Office in cooperation with KUD Minanga Ogan. In this case the corporate help the National Land Agency Office by supporting with manpower and equipment.

In dealing with measuring and mapping, circling map, lots map, topography map and land use have been mapped in scale of 1:10,000. According to area measuring, the area of land consolidation is 2,793.8 ha with number of lots 370 and the area of lots between 1.2 and 89.1 ha.

Block design and spatial design were made after STUP (land participation for development) had been determined. The result of coordination meeting between KUD members, estate corporation and the National Land Agency of Regency Office determining STUP was 20 percent of the total area with allocation as follows: street 6%, village treasury (2 villages) ± 0.7%, emplacement 3%, river or swamp etc. 4% and reserve land ±  6.3%.

Based on STUP 20% of the area, therefore, the area roughly is about 2.5 ha per household (KK). Considering the variation of lots area of the participants (farmers), there should be increased or decreased area to complete the area of 2 ha net each.

To solve the problem above, land consolidation has been approached using land banking principles as follows:

The farmers who have land more than 2.5 ha, have a chance to distribute their excess land to the family members and then the rest of land is bought by estate corporation. On the other hand, the farmers who have land less than 2.5 ha will be completed by reserve land from STUP by buying from the estate corporation. Farmers who do not have land, but they want to become KUD members, are possible to get land by buying from estate corporation with cash, credit or worked in the estate. According to spatial planning, location of land use are as follows: emplacement for 4.2 ha Palm Oil Estate for 2,434 ha; Green belt for 104.5 ha; Marginal land for 132.2 ha and street for 81 ha. Based on that calculation, therefore, the numbers of lots are 2,434 ha for 2 ha accounted for 1,217 lots.

Moreover, after releasing the right of land from landowner and establishment letter of Decree from the State Minister of Agrarian Affairs/The Head of National Land Agency about confirmation of land consolidation object, lots measuring was conducted in dealing with issuance of land certificate for the participant of land consolidation. The issuance of land certificate was implemented after the issuance of Letter of Decree from The Head of National Land Agency of Provincial Office.

Finally, the result of land consolidation of estate crops in the plasma area of PTP Minanga Ogan was drawn up into a map. Before land consolidation, there were 370 lots with the area between 1 and 90 ha, shape and location were irregular; while after land consolidation the number of lots become 1,217 lots with the area 2 ha each and all of the lots have regular shape and access to the road.

To prevent for changing landownership without permission from KUD Minanga Ogan, therefore, work agreement has been made between farmers/participants and KUD Minanga Ogan.