ABSTRACT

The enforcement of Law Number 5 of 1960 on Basic Agrarian Law (UUPA) has caused fundamental change in land-related law in Indonesia, including in land reform. The land reform program involves the land redistribution exceeding maximum boundary. Article 10 Paragraph (1) of UUPA suggests that agricultural lands must be cultivated by the owners. However, most agricultural lands are managed by giant capitalists while farmers work as their labours. This research is aimed to analyse impeding factors to put the land distribution into practice in Indonesia and to set a socially just agricultural land redistribution in the state. Four impeding factors in land redistribution are identified: (a) there is no clear implementation of regulation over excessiveness of lands; (b) there is no clear regulation over absentee land; (c) the government has difficulty formulating the form of socially just land reform and land redistribution; (d) the government has an issue over providing appropriate compensation to those whose lands are affected by land reform and redistribution; and (e) lack of land area as object of agrarian reform. Therefore, the government should formulate a proper model to realise a socially just land redistribution through government policy regarding land release to farmers who do not own any land by means of sufficient state’s budget (APBN) directly paid to the farmers. The lands should not be given in freehold title status to avoid any further transfer to third parties, and the proper notarial deed given should be in the form of ‘the right to use’ or ‘the right to cultivate’. In addition, the role of stakeholders should be taken into account and it is important to develop agriculture and food technology.