Ulrich Löffler, (1996):
Land Tenure Developments in Indonesia

8.1 Land orientation

The Indonesian Minister for Agriculture, Professor SJARIFUDDIN BAHARSJAH made the re-orientation of agriculture clear at a seminar of the Gadjah Mada University in May, 1993. The objective of the policy is the establishment of a commercialized agriculture in Indonesia which would lead to a more professional cultivation of agricultural land. The model for the agricultural structure is the farmer as entrepreneur who methodically applies bio-technical advances and contributes to a further rise in efficiency and productivity in the agricultural sector through the improved availability of State services.[FN 312]

The primary focus of agricultural policy is self-sufficiency in rice. But the agricultural policy also tries to diversify the production and to increase the non-rice food crops (palawija) and cash (estate) crops. Rice production already occupies the most fertile lowlands of Java, Bali, Southern Sumatra and Southern Sulawesi. Thus marginal lands must be developed for an increase in the production of non-rice food crops and estate crops. These include the tidal swamp lands on Kalimantan and Sumatra (about 35 million ha), as well as the alang-alang grasslands (about 15 million ha) and the critical uplands which are susceptible to erosion on Java and Bali (about 10 - 40 million ha).[FN 313]

The spread of estate crop plantations will additionally require the conversion of forest areas. This means that agricultural uses compete with forest uses in many places. According to official submissions, 3 million ha of state forest land have been converted to agricultural estates, and used for transmigration and infrastructure purposes in the last 3 years.

The present area of state forest land covers 140.4 million ha, consisting of 113.8 million ha as permanent forest lands, and 26.6 million ha convertible forest lands. Of the permanent forest areas, 64.3 million ha are classified as production forests, 30.7 million ha as protection forests, and 18.8 million ha as conservation forests.

Along with a stable timber log production, it is the objective of the MoF to extend plantation forests (Hutan Tanaman Industri (HTI)). The HTI will be extended to 6.25 million ha in the long run, and will contribute to the supply of industrial wood, land conservation, the reafforestation of unproductive forest land as well as providing job opportunities.

For the protection of the biodiversity and nature conservation, further areas of land will likewise be made available in the future. For example, further Nature Reserves and National Parks are being planned. By the year 2000, 40 National Parks ought to have been established.

Forestry and agricultural areas of land are more strongly required for urban purposes in the course of economic development. On Java alone, land used for agriculture has been reduced from around 6.4 million ha to around 5.5 million ha in the last ten years. In urban fringe areas, new land development and settlement concepts are required for the improvement of urban development.