Pancasila as a Compass Amidst Land Ownership Inequality

Land is the source of life for all beings on Earth, particularly humans. The relationship between land and humans is inseparable and functional. Land serves as a unifying medium, evident in its roles as a place of residence and a means to fulfil basic needs. For Indonesians, land is crucial for farming, which produces food to meet the entire population’s essential requirements.

Philosophically, as stated in the 1960 Basic Agrarian Law (UUPA), land within the territory of the Republic of Indonesia is a divine gift to the Indonesian nation, held in ultimate ownership by the state for the greatest prosperity of the people. Despite land’s place in Pancasila philosophy, achieving a fair land management system remains a long-term challenge.

Land ownership inequality has been a persistent challenge for Indonesia’s government since independence. Its continued existence indicates poor implementation of Pancasila values in national land law. Land’s role as a symbol of socio-economic status drives large-scale ownership, especially in economically valuable areas such as mining, plantations, industrial zones, and urban regions, which attract corporations and land mafias.

LAND AND PEOPLE’S WELFARE

Article 33(3) of the 1945 Constitution clearly states that state control over land, water, and natural resources must serve the people’s prosperity. Given Indonesia’s agrarian nature, with most citizens living and working in agriculture, ensuring agricultural land availability is vital for food sovereignty.

Thus, land ownership patterns directly affect farmers’ livelihoods. A shortage of arable land is a core issue in agrarian societies. With current unequal land ownership, the government must urgently restructure agrarian systems through legislation to lift people out of poverty caused by unequal land access.

Regarding agrarian reform for justice and welfare in the globalised era, constitutional principles dictate that its philosophy aims to advance public welfare, as outlined in the 1945 Constitution’s Preamble and Pancasila’s fifth principle: Social Justice for All Indonesian People.

The concentration of land ownership is a key indicator of agrarian inequality. Productive areas are often controlled by large corporations via plantation, mining, or national strategic project permits, while local communities face restricted access. Agrarian conflicts have risen due to overlapping rights, evictions, and weak recognition of indigenous rights. This deviation from Pancasila’s goal of prioritising people’s welfare in resource management is evident in cases like Tanah Adat Dolok Parmonangan in North Sumatra (2024), Dayak Paser land conflicts, Lubuk Basung in West Sumatra, and Boven Digul.

INDIGENOUS COMMUNITIES AND FPIC RIGHTS

In land ownership inequality driven by development projects, indigenous communities are consistently the victims. This issue has gained international attention, leading to the UN Declaration on the Rights of Indigenous Peoples (UNDRIP), which established Free, Prior, and Informed Consent (FPIC) principles. FPIC affirms indigenous peoples’ right to freely accept or reject development plans in their territories based on complete information provided from the planning stage.

This requires developers to fully disclose all aspects of projects, including positive and negative impacts, to indigenous communities. They must be given adequate time to discuss the information and seek advice from chosen representatives. ‘Free’ in FPIC means decisions must respect mutual interests through respectful processes. ‘Informed’ necessitates transparent disclosure of all relevant information, allowing communities time to review and deliberate. ‘Consent’ entails respecting indigenous decision-making systems and their chosen representatives; developers must negotiate with communities, who retain the right to approve or reject proposals.