A Review of Indonesian Land-based Sectors with particular reference to Land Governance and Political Economy

Annual World Bank Conference on Land and Poverty 2015The World Bank - Washington DC | March 23-27, 2015

Shivakumar SrinivasKeith Clifford Bell

Kurnia TohaArinal Zaenal

Bill Collier

Presentation Outline

Indonesia’s Land Challenges

Ongoing Reforms Since 2004

More Signs of Changes and

Reforms Government’s Post-2014

Government’s Recent Initiatives

and Areas for Priority Action

Indonesia’s Land

Challenges

Persisting Challenges in Land

Clear Signs of Tension• Indonesia’s poor are

primarily rural (63%), and increasingly disadvantaged

• Landlessness growing and land holding for the majority shrinking.

• Around 40 mn people live (33,000 villages) in areas classifed as forestland (contain large number of land conflicts), who land rights are not recognized

Natural Assets Underutilized or Degraded• Natural Forest is Rapidly Disappearing (24 mn ha; with 50% lost in the last 10 years)

• Abundant Degraded Land (74 mn ha) and Forest areas with No Management (50 mn ha)

• Lots of Timber Plantation Concessions (10 m ha), but Little Utilization (3 m ha)

Growing Demand for Land

Growing demand for land for urban developmentIncreasing demand for large-scale investments in land Land acquisition, fair compensation and adequacy of recourse provisions continue to remain as hotspots.

Only around 14% is classified as non-

forestland (total: 110 mn land

parcels) and is eligible for land

titling.

Around 40 mn (out of 110 mn) has actually been registered and

titled. Of this, only 12 mn has actually

been verified.

Only 7 out of 34 provinces have a Legally Binding Spatial PlanDifferent, overlapping mapsLack of village level spatial planning

Lack of complete, current mapped

inventory (spatial cadastre) of all

land areas (state and private) and a reliable Land Data

Base.

Persisting Challenges .. .. Cont’d

Inconsistencies and

Overlapping Laws and

Regulations on Land

Dualism between

Forest Law and Spatial

Planning

Policy transitions

are frequent, uncertain and land-related

institutions are put in limbo for

long

Public lands are poorly managed

Persisting Challenges .. .. Cont’d in Policy and Legal Environment

Legacies of Soeharto’s Extractive

Regime

Accumulation of land for speculative

deals by politically influential

conglomerates

Institutional challenges

Control and authority over land

Persisting Challenges .. .. Cont’d dominance of politics, power and patronage in land

On-going Reforms since 2004

Rulings of the Constitutional Court since 2010 (e.g., on rights of Indigenous Peoples; responsibility for zoning forestland).

Imposition of a 2-year moratorium on issuance of new concessions for use of primary forest land areas (2001) and regular monitoring and reporting on performance of the moratorium.

Preparation of Land Rights bill (Apr 2013) and a new Land Law (end 2013).

Adoption of the Geospatial Information Law, 2011, launch of OneMap as well as development of NSDI.

Civil Society Advocacy and Growing Community Voices.

MORE SIGNS OF CHANGE AND

REFORMS POST-2014

New Government’s

Nawa Cita (Nine Principles) Policy

(2014) that has stated actions on

strengthening land administration,

agrarian reforms and land

governance

Formation of integrated and

streamlined ministerial

mandates and arrangements

post-2014 (Ministry of Environment and

Forests, and Ministry of Agraria and Spatial

Planning/National Land Agency)

OneMap Policy (with

National Geospatial Information Agency

leading the work under the oversight

of the Economic Coordinating

Ministry)

Government’s

commitment for the early adoption of

the two critical land related Bills (i.e., Land Law and IP

Land Rights Bill)

Coherent and Concerted Policy

Actions

One Map, One Data, One Landscape

Unifying Land Administration and

Management

Enabling Effective Management of

Forest Lands

Harmonizing and Improving

Licensing and Concession

Management

Improve Capacities for Land

Registration and Service Delivery

Manage Food and Water Security

Strengthen Smallholder Farms

Overview of Government’s Stated Priorities for Land Sector Reforms

Government’s Recent Initiatives

Distribution of idle/abandoned land areas

Developing Smart Cities and New Ports (Involves land conversion and requires good land governance as a basic principle.)

Government’s REDD+ Commitments and Streamlining Responsibility for REDD+ under MoEFor

Preparation of Land Maps for 2,500 villages by end 2015 to support local development programs (scale up in the following years)

Reducing conflicts, strengthening community participation, and supporting good land governance.

Managing Indonesia’s Assets at the Landscape Level

Clear/Equitable Land Allocation Unified Land Legislations;

Protect and Recognize Customary (adat) Land Rights; Conflict Resolution System;

Coherent Spatial Planning Revamping OneMap to be Fit-for-

Purpose; Spatial Planning Framework; Demarcation of Forest Areas.

More Efficient Incentive Systems

Reform of Fiscal Transfers, Non-tax Revenues, Subsidies, Positive Incentives, REDD+.

People

Land

ForestsBiodiversity

Water

“Land-to-People” (and livelihoods) relationships as the basis for landscape work.

Unifying Land Administration and Management

Dual Land Management System (Forest and Non Forest Land)

Conflicting and Competing Land Claims Resulting in Misallocation of Resources, Conflicts, and Inequality

Only 7% of non-forest land is registered and much lesser area has complete and current spatial cadastre

Underlying Issues

Consult and Draft Comprehensive Land Law and Law to Protect and Recognize Customary Land Rights

Establish Conflict Resolution Systems

Immediate actions

Technical support for inter-ministry and stakeholder coordination

Support for policy and legal development specifically for adoption and further development of the two key land-related bills.

Land governance studies to address the priority thematic areas.

Short Term

Actions

One Million Hectares Annual Deforestation

50 million ha Forest Land are Without Management

Ineffective Decentralization of Forest Management

Central Licensing and Monitoring System are Inefficient and Not Integrated with Spatial Plans

Underlying Issues

Empower and support forest management planning and implementation including regulatory enforcement

Increase community participation (dialogue and partnerships) in land sector reforms

Introduce periodic assessment of sector needs

Immediate actions

Draft Regulation on Community and CSO Involvement in Organization, Management and Planning in forestlandSimplify Procedures for Issuing Community Forestry Licenses and Promote its Practice Reform and Monitor Concessions and License System

Training to address capacity needs

Short Term

Actions

Enabling Effective Management of Forest Lands

KEY TO SHAPING FOREST REFORMS

Actively promote the recognition of local rights and the broader strengthening and clarification of forest ownership and access

Assist communities to map and negotiate their forest areas through territorial, community land mapping techniques.

Assist governments in recognizing land claims, resolving land conflicts, and rethinking the organization of the public forest (field audits needed)

Craft tenure and rights-friendly institutional arrangements at all levels.

Phasing of reforms and transition needs to be better understood by decision-makers.

Put in place pro-poor standards and approaches

Clarify the property rights to the emerging ecosystem services and devise new climate regimes in a manner that supports the recognition and strengthening tenure rights.

Clearly define “state-held land”

based on a transparent

criteria.Protect and recognize the rights of informal

settlements (squatters and urban poor). Encourage “no

evictions policy”

Protection and recognition of

customary tenure (particularly in forest and rural

areas).

Indonesia is the 15th Largest Economy In The World With Abundant Land And Natural Resources.

Political Will For Land Reforms is a MUST.

A Review of the Land Sector in Indonesia

For copies of this report, please contact: kbell@worldbank.org

Thank you