Government to issue land control regulation: Minister

Government to issue land control regulation: Minister

JAKARTA (JP): The government will soon issue a land control
regulation in response to data indicating that significant
portions of land under private sector management have remained
idle, a senior minister said on Monday.

Coordinating Minister for Economy, Finance and Industry
Ginandjar Kartasasmita pointed out that many land permit owners
had never been able to utilize all of their land, which could
actually be put to productive use for other purposes.

The minister, however, said the government would wait until
the management rights expired before taking over any land.

"In other countries, like Malaysia, the size (of land that can
be controlled) is limited, not like (in Indonesia where people
can control) millions of hectares," Ginandjar said after meeting
with President B.J. Habibie.

During the meeting, Ginandjar was accompanied by Minister of
Forestry and Plantation Muslimin Nasution and State Minister of
Agrarian Affairs Hasan Basri Durin.

According to Ginandjar, the plantation sector had been granted
permits for 2.9 million hectares of land, of which only 470,433
hectares, or 16.2 percent, had been tilled.

Housing developers have only been able to build on 9 percent,
or 6.722 hectares, of the 74,735 hectares land allocated to them
by the government.

The industrial sector has utilized only 9.6 percent of its
29,999 hectares of land, while the tourist and services sectors
have developed just 8.2 percent of their 18,582 hectares.

Ginandjar said statistics showed that oil palm plantations
were profitable if they utilized 10,000 hectares of land, while
sugar cane plantations needed about 30,000 hectares.

Forestry estates need 50,000 hectares of forest land to be
profitable, while the pulp industry needs 100,000 hectares, he
added.

"It (the regulation) will come into effect soon," Ginandjar
said.

Experts have proposed that the government review the current
agrarian law, saying it had failed to meet current needs at a
time when people tended to own much more land than in the 1970s.

A reliable source, who spoke on the condition of anonymity,
said five conglomerates controlled 12.5 million hectares of
forest under the forestry concession holder (HPH) program, each
the owner of several HPHs.

"PT Kayu Lapis Indonesia (controlling 17 HPHs), owned by
Hinawan Susanto, manages 3.5 million hectares of forest," said
the source.

Djajanti Group (controlling 27 HPHs), owned by Burhan Uray,
has the right to exploit 2.9 million hectares, while Barito
Pacific (controlling 27 HPS), owned by Prayogo Pangestu, manages
2.7 million hectares.

"PT Kalimanis (controlling 9 HPHs), owned by Bob Hasan,
controls 1.85 million hectares, while PT Alas Kusuma (controlling
13 HPHs), owned by Suwandi, manages 1.5 million hectares of
forest," the source pointed out.

"Just for your information, West Java only measures three
million hectares," the source said.

Nasution said the government would honor the rights of the
concession holders until their terms expired, but would not
extend them.

"We cannot just revoke their rights, unless, for instance,
they intentionally do not pay the levies or reforestation funds,"
the minister said. (prb)