Some Aspects of Land Administration in Indonesia

Land issues in most countries have major social and economic implications, more so in rapidly growing economies such as Indonesia. Inequitable ownership patterns of land have motivated land redistribution movements in many countries while efficiency issues related to fragmentation and uneconomic holdings of land have been the basis for land consolidation efforts. With economic growth and population increase, land prices tend to rise, and associated with this, conflicts over land compensation and resettlement issues tend to increase in equitable development, and changes in land use result in land degradation. An efficient land market with proper land titling enables land to be used as collateral, and offering the security of tenure enables more efficient investment decisions. Land acquisition procedures that are not fair and transparent could lead to social instability and adversely affect the implementation of development projects. Involuntary displacement of people through the acquisition of land for development projects without adequate and fair compensation and the provision of an alternative means of livelihood may cause severe hardship to them. Indeed, Indonesia must consider developing a comprehensive national land policy to effectively address these and other related issues.