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

8.1.3 Legal Bases

The implementation of Land Consolidation is an integrated activity (sectoral line) which relates to land tenure and land management. Consequently, it needs clear regulation as the base on land consolidation practice. This means that the regulation outlines the objectives and keeps the practice continually implemented in order to draw a development pattern through land consolidation.

In order to implementation such a development program as stated under Spatial Plan, some regulations are considered during the process of land consolidation, among others are:

1. Act Number 5 of the year 1960 concerning Basic Regulation on Agrarian Principles.
2. Act Number 56/Prp/1960 concerning Provisions of Land Size.
3. Government Regulation No. 224/1960 concerning Implementation of Land Distribution and Compensation.
4. Letter of Minister of Internal Affairs No. 590/5648/Agr dated 9 October 1955 concerning Technical Manual on the Implementation of Land Consolidation.
5. Letter of Minister of Internal Affair No. 2/1987 concerning Increase and Continuous Implementation of Urban Land Consolidation.
6. Regulation of Minister of International Affair No. 2/1987 concerning Instruction of Urban Planning Arrangement.
7. Regulation of the Head of National Land Agency No. 4/1991 concerning Land Consolidation.
8. Letter of the Head of National Land Agency No. 410-4245 dated 7 December 1991.

Basically, Land Consolidation is carried out by landowners themselves, based on such a consensus. This consensus is a basic idea of the implementation on land consolidation. It is clear that, from the beginning, it has to involve an active participation of community as participants, starting in planning activity until controlling, especially their willing to give part of their land for developing public facilities. Without their participation, implementation of land consolidation cannot be realized.

Participation of the landowners can be seen in land contribution from some part of their property as follows:

1. Land for facilities (road, drainage or waterway, and so on).
2. Land for public facilities such as paddy shed, fertilizer shed, result of land production, and so on).

Their participation is not limited on contribution in terms of financing, but instead they also join in planning step: replotting design and control of physical development activity.

Moreover, their participation activity is also viewed in their agreement among land consolidation participants, whereas the agreement must be in written form This outlines the followings:

1. The agreement on the implementation of Land Consolidation consists of land delivery and other steps as stated on prevailing regulations.
2. The agreement on map showing the initial fact and list of the rightfull landholders before the implementation of land consolidation and how the contribution is agreed upon before land consolidation is implemented.
3. The agreement on map proposing the final plots and final list of participants (reallocation) of consolidation participants who will receive new land plots.