A Review of Indonesian Land-based Sectors with particular reference to Land Governance and Political Economy Annual World Bank Conference on Land and Poverty 2015 The World Bank - Washington DC | March 23-27, 2015 Shivakumar Srinivas Keith Clifford Bell Kurnia Toha Arinal 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

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 development Increasing 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 Plan Different, overlapping maps Lack 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.

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 (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+. PeopleLandForestsBiodiversityWater “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 forestland Simplify 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

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.

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