World Bank Loan to Strengthen Agrarian Reform

Anitana Widya Puspa, JAKARTA— The Ministry of Agrarian and Spatial Planning (ATR) /National Land Agency (BPN) will optimalize the World Bank loan amounted to US$ 200 Millions for the acceleration of assets legalization also the strengthening of agrarian reform infrastructure.


Last July 18th 2018 International Bank of Reconstruction and Development (IBRD) of the World Bank Group have agreed to the loan for the Agrarian Reform Acceleration Program (One Map Policy) amounted to US$ 240 Millions, consisting of US$ 200 Millions from the World Bank and US$ 40 Millions from the Indonesian Government.


Around 4,3 millions of land users will be granted the benefits of that program. It is hoped to accelerate the government effort on agrarian sector through participatory mappaing, electronic land information service and complete systematic land registration.


Director-General of Infrastructure from The Ministry of ATR/BPN, Mr. Adi Darmawan said that the World Bank loan will help the mapping of adjacent land or the buffer zone to forest areas. Those “gray” areas were found on seven provinces within Kalimantan and Sumatera.


Especially, he added, that it is in accordance with the Presidential Instruction no. 2/2018 on the Acceleration of PTSL, subsequently the buffer zone are mapped.

"The funding from World Bank is to fortify the infrastructure, because for the granting of its rights, same with PTSL, which is with wholesome rupiah funding,” He said on Tuesday (24/7/2018).


Minister of Agrarian and Spatial Planning/National Land Agency, Mr. Sofyan Djalil also stressed upon the current problem which the unclear forests limit is causing the difficulties in publishing the certificate for lands near the forests’ border.


In addition, added Sofyan, loans are also for the developing and improving the systems in land offices through best practices owned by the World Bank while providing skilled workers. Sofyan said the government's main target was to register every piece of land in Indonesia by 2025.


"Why the World Bank? Because we need skilled workers possessing experiences so that they can be working as best practicioners for e-Office," Sofyan said.


The allotment of the loan is questioned by the Consortium for Agrarian Reform (KPA). The Secretary General of KPA, Ms. Dewi Kartika regretted the decision on loan funding because all the components of the debt were not only applied for agrarian reform.


"The debt components are spent for the One Map Program, combined with Complete Systematic Land Registration (PTSL) and electronic land information services," she stated.


Dewi said that loans considered as a process of agrarian reform acceleration contradicting with the spirit of agrarian reform, which is being used as a priority program by the Government of President Joko Widodo.


According to KPA, Agrarian Reform is structuring the agrarian structure due to the inequality of control of the national agrarian structure. The inequality is characterized by the majority of the people, especially peasants, labourers and the indigenous people do not own land or have narrow land while the majority of land ownership is still controlled by entrepreneurs.


Menurut KPA, Reforma Agraria adalah penataan struktur agraria akibat ketimpangan penguasaan struktur agraria nasional. Ketimpangan tersebut bercirikan sebagian besar rakyat khususnya petani, buruh tani, masyarakat adat tidak memiliki tanah atau bertanah sempit sedangkan kepemilikan tanah sebagian besar masih dikuasai pengusaha.


This article was published in the website entitled “Pinjaman Bank Dunia untuk Perkuat Reforma Agraria” on Tuesday, July 24th 2018, at 21.22 Western Indonesia Time. The original article can be accessed in:


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