This summary of Land Tenure and Property Rights (LTPR) issues in Indonesia is part of a series of LTPR Country Profiles produced by Associates in Rural Development, World Resources Institute and Rural Development Institute for USAID. The profile includes information on property rights and tenure concerning land, forests, freshwater, and minerals, as well as an aggregation of LTPR-related indicators. Options and opportunities for intervention by USAID are presented at the end of the profile, along with an extensive list of references for additional information.
At least five land and natural resource property-rights issues should be addressed for the benefits of growth to be more widely shared and to increase environmental sustainability. First, ambiguities between formal and customary law are interpreted by governments, officials and citizens in ways that undermine land rights, leading to a growth in land disputes and conflicts which must be addressed. Second, a registration system that is overly complex, inefficient and ambiguous has weakened security of tenure and the development of a functioning land market. Third, land conversions driven by economic development are threatening Indonesia’s vital forest resources and hold implications at the global, national and local levels, particularly related to climate change. Fourth, urban growth has not been accompanied by sufficient investments in housing and urban services despite continuing decentralization. Fifth, the problem of rural landlessness has limited the economic options, basic livelihood strategies and food security of millions of families.
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