Preparing for Transformation: Prerequisites and Transition Mechanisms for Sustainable Land Governance Reform in Indonesian Oil Palm
DOI:
https://doi.org/10.59890/ijgsr.v4i5.226Keywords:
Land Governance Reform, Oil Palm Plantation, Smooth Transition, Investment Climate, Institutional Prerequisites, Coercive Versus Incentive Approaches, Conflict Prevention, Phased Implementation, Equity-Productivity Balance, Policy SequencingAbstract
Land governance reform in Indonesia's oil palm sector faces a critical challenge: achieving greater equity in land access without disrupting productivity or triggering social conflict. This study examines the prerequisites and transition mechanisms essential to a smooth, sustainable policy implementation that balances equity and productivity. Drawing on comparative land reform experiences, investment climate literature, and transition management theory, we analyze the risks of coercive versus incentive-based approaches and develop a comprehensive framework for gradual transformation. Historical evidence from Zimbabwe, Venezuela, and other countries with disruptive land reforms demonstrates that forced expropriation approaches severely damage the investment climate, cause production collapse, and generate social conflict—outcomes particularly detrimental for perennial crops requiring 25+ year investment horizons. Conversely, successful gradual reforms in Taiwan, South Korea, Vietnam, and Malaysia's FELDA demonstrate that phased approaches with extensive institutional preparation can achieve equity gains without sacrificing productivity. We identify four critical prerequisite domains: institutional capacity (Land Bank operationalization, cooperative strengthening, extension transformation), technical readiness (plantation inventories, management support systems, market linkages), social preparation (beneficiary selection mechanisms, conflict prevention, expectation management), and legal-regulatory frameworks (comprehensive legislation, safeguards, enforcement capacity)
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