"Here's Why Indonesia Must Pass the New Land Bill", 19 July 2019

Indonesia must pass the new land bill into law to give investors legal certainty and avoid conflict with indigenous communities, experts say.

...The draft bill...regulates, among others, the boundaries of state-owned forest zones.

Indonesia's regulatory framework governing land is considered flawed and many believe it requires a comprehensive overhaul. The land rights of unregistered owners, mostly indigenous people, often turn into long legal battles. Investors in the agriculture industry also await legal certainty amid fears that the land issue may become the main legal obstacle in their plans to invest in the sector.

"...Don't let this legislation meet the same fate as its older brother, Law No. 5 of 1960 [Basic Agrarian Law]," said Sudarsono Soedomo....

...Most of Indonesia's forests are state owned...: protected forests, conservation forests, limited-production forests and production forests. Exploitation of the first two is prohibited, while the government may grant concessions over the last two, subject to certain terms and conditions.

However, Sudarsono said this zoning system hampers national development....

"The argument for ecological protection leads to an enormous waste of our natural resources," he said, adding that about half of large corporations with concessions in limited-production and production forests have either abandoned the land, or failed to use it productively. Furthermore, indigenous people and local residents only own 5 percent of the total concessions the government has granted in forest areas.