Wednesday, 3 July 2013

TO PREVENT LAND CONVERSION, GOVERNMENT PROPOSED MORATORIUM



Indonesia is threatened by agricultural lend deficit of 730,000 (0.73 million) hectare by 2015. Total Indonesian population in 2015 is estimated at 255 million people. With the assumption that rice consumption per capita at 136.1 kilogram per capita/year, to meet consumption demand, a size of paddy field of 13.38 million hectare is needed. But, only 13.20 million hectares are available.

The Agriculture Ministry reported that land deficit is as a result of conversion of agricultural land and increasing food demand. The Agriculture Ministry sent a proposal to the President requiring issuance of an instruction for moratorium on conversion of paddy field as an attempt to prevent conversion of agricultural land.

Direc­tor General of Agricultural Infrastructure and Facilities at the Agricul­ture Ministry, Gatot Irianto, in Jakarta on Tuesday (2/5/2013) stated that the Agriculture Ministry is preparing a reg­ulation on moratorium on land conversion for 3 years. In the next 3 years there will he no license for land conversion, especially the one granted by the regional government. The draft moratorium regulation will be in the form of a Presidential Instruction.

Land conversion has been a problem to ag­ricultural sector. There is at least around 100,000 hectare of agricultural land which has been convert­ed each year. The government already has a Law on Land Protection. Land conversion is related to regional government’s policy on the grant of Hak Guna Usaha (Right on Land Cultivation).

Based on records of the Agriculture Ministry, rate of paddy field loss in Indonesia reaches
110,000 hectare a year. On the other hand, capacity to create of new lend only reaches 45,000 hectare.
The capacity to create new paddy field in 2012 reaches 100,000 hectare, and 92% or 92,000 hectare has been realized. While, program of creation of new paddy field this year is only at 65,000 hectare with total budget at around Rp 650 billion.

Decline in target of creation of new paddy field next year is due to limited budget. Cost of creation of new paddy field is Rp. 10 million per hectare. Creation of new paddy field will use state-owned land or farmers-owned land.

Gatot believed that rice production rata is lower than rapid population growth. While, number of agricultural land is decreasing due to lend conver­sion. So, the government must immediately imple­ment agricultural land moratorium to minimize rate of conversion of productive paddy fields to residential and industrial areas. He said that the biggest threat to food security besides climate change is unavailability of productive agricultural land.


The government must apply spatial planning and regional planning explicitly accompanied with agricultural lend moratorium. The Agriculture Ministry admitted that its plan on prohibiting Conversion of paddy field is hampered by problem of fragmented land ownership. In addition to that, the Agriculture Ministry also complained that the regional govern­ment easily granted permit for conversion of paddy filed to housing or industrial estate. While, creation of new paddy field requires a big amount of cost.

The Ministry of Agriculture encouraged the re­gional government, the regent and mayor to maintain agricultural land in their respective regions. Agrarian reform should be empowered so that farmers could obtain land of 2 hectare at the minimum. Another problem is that many farmers died so their land is passed on their children.


Business News - February 08,2013

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