Indonesian Political, Business & Finance News

Land Bank Agency Committed to Eradicating Structural Poverty in Land Affairs for the Public

| Source: VIVA Translated from Indonesian | Economy
Land Bank Agency Committed to Eradicating Structural Poverty in Land Affairs for the Public
Image: VIVA

The existence of the Land Bank Agency is viewed as an effort by President Prabowo’s administration to realise aspects of justice and welfare in land affairs for the public. Rather than becoming a bureaucratic monster, the agency’s existence is instead an instrument formed as a fight against poverty. This paradigm is championed by 12 academics from various universities, who took a progressive step at the Constitutional Court. They submitted themselves as amicus curiae, or friends of the court, in the judicial review of the Job Creation Law, specifically to safeguard the existence of the Land Bank Agency. One of the academics, Professor Dr. Elita Rahmi from the University of Jambi, issued a stern warning to parties still trapped in an outdated paradigm regarding the role of the state. She reminded that there has been a fundamental shift from the passive ‘night watchman state’ concept, or nachtwakerstaat, to a modern welfare state. ‘In the modern welfare state concept, the state participates in all lines of life to create welfare and justice. So this Land Bank is a tangible manifestation of how the state realises that welfare,’ Prof. Elita said in a statement on Tuesday, 7 July 2026. In the view of the academics, the Land Bank Agency is not a bureaucratic monster, but an instrument to fight poverty. Through the obligation to allocate a minimum of 30 percent for agrarian reform, this institution carries a mission far deeper than merely distributing free land certificates. According to her, there is a crucial educational spirit within it. Prof. Elita highlighted that granting land rights to the people must be accompanied by strict mentoring. ‘This is not just about giving land, but also providing education to the community. When state land is given, the people are educated so that the land is not immediately sold. There is a specific process and deadline, as well as obligations that must be fulfilled,’ she said. This mentoring concept is considered the most logical way out to overcome the structural poverty that ensnares the Indonesian nation. According to her, it ensures that land truly becomes a productive asset that brings prosperity, not just an instant commodity that changes hands back to capitalists.

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