Agrarian Reform As a Nationalism Issue from Colonial to Reformasi Era

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Paramita:Paramita: Historical Historical Studies Studies Journal, Journal, 29(1), 29(1), 2019: 2019 28-42 ISSN: 0854-0039, E-ISSN: 2407-5825 DOI: http://dx.doi.org/10.15294/paramita.v29i1.13633

AGRARIAN REFORM AS A NATIONALISM ISSUE FROM COLONIAL TO REFORMASI ERA

Retor AW Kaligis Sekolah Tinggi Ilmu Sosial dan Ilmu Politik (STISIP) Widuri, Jakarta

ABSTRACT ABSTRAK

Agrarian reform has always been regarded as a Reformasi agraria selalu dianggap sebagai communism-related issue in Indonesia as it is masalah yang berkaitan dengan komunisme often associated with the unilateral action ot di Indonesia karena sering dikaitkan dengan the BTI (Indonesian Farmers' Union)/ PKI aksi sepihak BTI (Barisan Tani Indonesia) / (Indonesian Communist Party) in the first mid PKI (Partai Komunis Indonesia) pada per- of 1960s. The stigma is still attached to this tengahan 1960-an. Stigma masih melekat present time. Whereas, agrarian reform is ac- pada saat ini. Padahal, reforma agraria tually a policy that relates with various ideolo- sebenarnya adalah kebijakan yang berkaitan gies to reach different objectives. The step to dengan berbagai ideologi untuk mencapai conduct agrarian reform has been started since tujuan yang berbeda. Langkah untuk 1926 when Perhimpunan Indonesia (PI) or Indo- melakukan reformasi agraria telah dimulai nesian Association, an organization led by sejak 1926 ketika Perhimpunan Indonesia Mohammad Hatta in the Netherland created (PI), sebuah organisasi yang dipimpin oleh the land restructured program as a part of In- Mohammad Hatta di Belanda menciptakan donesian independence plan. In 1948, Mo- program restrukturisasi tanah sebagai bagian hammad Hatta as the Prime Minister prepared dari rencana kemerdekaan Indonesia. Pada a draft of National Agrarian Law. The target tahun 1948, Mohammad Hatta sebagai Per- was only then achieved 12 years later through dana Menteri menyiapkan rancangan UU the legalization of the Principal Law of Agrari- Agraria Nasional. Target tersebut baru an of 1960. This study employed a historical tercapai 12 tahun kemudian melalui legalisasi comparative study to explore the agrarian re- Undang-Undang Pokok Agraria tahun 1960. form in Indonesia postcolonial country as a Studi ini menggunakan studi perbandingan nationalism-related issue used to strengthen historis untuk mengeksplorasi reformasi the national sovereignty and to improve the agraria di Indonesia pascakolonial sebagai isu life of the citizens. terkait nasionalisme yang digunakan untuk memperkuat kedaulatan nasional dan untuk Keyword: agrarian reform, nationalism, colo- meningkatkan kehidupan warga. nialism, post-colonial era. Kata kunci: reformasi agraria, nasionalisme, kolonialisme, era pasca-kolonial.

Author correspondence Email: [email protected] 28 Available online at http://journal.unnes.ac.id/nju/index.php/paramita Paramita: Historical Studies Journal, 29(1), 2019

INTRODUCTION the government also formed an Agrarian Since the era of colonialism until the pre- Committee in BP KNIP meeting in Sep- sent time, it is often said that Indonesian tember 16th 1948. Prime Minister Hatta people have been regarded fail to advance stated that the committee was formed to due to its spoiling fertile and rich land. prepare the law to restructure the land ten- Whereas at the same time, political and ure through the implementation of land capital network have marginalized the division system and limited-right of land community away from this fertile and rich tenure (Hatta, 2015: 96-97). After going land. Most of the natural resources have through a long process, the objective was been enjoyed by a few foreign and domes- finally achieved as the Act Number 5 of tic investors. 1960 about the Basic Principles of Agrari- Before the presence of the Western an, or Undang-Undang Pokok Agraria colonialism, across-island trading and in- (UUPA) was legalized. ternational trading in Archipelago had Hatta is a drafter of Article 33 of the been run for centuries. In that era, the mid 1945 Constitution. If cooperative is seen -class society used to consist of ship own- as the manifestation of Article 33 para- ers and merchant. However, the presence graph (1), then agrarian reform is the con- of Vereenigde Oost Indische Compagnie crete step of the article (3). The point of (VOC) which monopolized the crops trad- Hatta's ideals was the management of eco- ing had made local communities pressed nomic resources based on social justice. and the contents of their economic life The UUPA of 1960 was intended to modi- shrank. After taking over the trade route, fy the imbalance land tenure system the Dutch colonials distorted the land ten- through the distribution and protection of ure system within the community and had rights upon farmers’ land, limitation of the the community worked as low-paid la- land ownership rights to a maximum of 5 bors. Therefore, ever since the movement hectares. However, various obstacles oc- activity in 1920s, agrarian issues have be- curred in the implementation of the agrari- come the major agenda of the nationalists an reform including protests from the ma- to fight against economic inequality struc- jor landowners and bureaucratic officials ture due to colonialism. who supported the landlords. The unilat- Muhammad Hatta was the pioneer eral action held by the BTI (Barisan Tani of the agrarian reform (land reform). In Indonesia) or Indonesian Farmers' Union / 1926, under his leadership, Perhimpunan PKI (Indonesian Communist Party) in the Indonesia in the Netherlands proclaimed first half of the 1960s was intended to the abolition of private-owned land in "accelerate" the implementation of agrari- Dutch East Indies (Hatta, 1998: 152-3). an reform which then sparked social con- After returned to homeland, Hatta started flicts in some regions. to focus on people’s sovereignty and ana- The agrarian reform effort then met lyzed the land tenure system which results a deadlock as the political power shifted were published in some edition of Daulat from the Old Order to the New Order. Ra’jat newspaper in 1930s. Under Panitia The distribution of land tenure became Adat (the Custom Committee) in Japanese way too unequal when the New Order era, Hatta proposed a system to limit the government opened up large-scale farm- land ownership rights up to 5 hectares ing, mining, industry and forestry that in- (Noer, 1991: 200). In the early era of inde- volved several domestic and foreign inves- pendence, after the Sjahrir and Amir Sjari- tors who were the main sources of land fuddin eras rarely touched on the land is- disputes. In the reform era, land tenure sue, the Hatta Cabinet formed a commit- was increasingly unequal when the land tee investigating land conversion rights tenure in the regions was lined up by in- which resulted in the enactment of Act vestors who colluded with "small kings" Number 13 of 1948 to deprive the rights in who gained power through regional au- Yogyakarta and Surakarta. In that year, tonomy system. The onslaught of (neo)

29 Paramita: Historical Studies Journal, 29(1), 2019 liberalism in economy also affected the large investors, both foreign and domestic country's resilience to uphold the sover- who are close to power, and employed the eignty of the nation and the lives of the local residents as low-paid labors in this community. vast and wealthy country. Being inde- Under the leadership of Joko Wido- pendent for more than seventy years, In- do, the government of Indonesia has made donesia still allows its natural wealth to be the agrarian reform as a national priority taken by dividing the profits which are program for National Medium-Term De- more profitable for the large investors velopment Plan (Rencana Pembangunan while at the same time put the society in a Jangka Menengah Nasional/ RPJMN) of weak position. Cheap wage is a pull factor 2015-2019. This concern is then put into that attracts trans-national companies to the Presidential Regulation No. 45 of 2016 make investment, without providing sys- concerning the Government Work Plan tematic efforts to improve the skills and (Rencana Kerja Pemerintah/ RKP) of 2017. productivity of workers and it is also leaps 9 million hectares of land have been put in industrialization strategies. into the plan of land redistribution and Therefore, the discussion of agrarian legalization of assets under the agrarian reform as a nationalism-related issue in reform plan. Whereas in order to expand Indonesia becomes an interesting topic in the community management in the forest the field of conflict and compromise area, the target of 12.9 million hectares of among various political forces, the power land is allocated for land management by of capital, and the relationship between the community. However, besides giving the government and its people. In terms of the appreciation toward a number of ef- the political thinking of agrarian reform forts to open dialogues about the proposed and nationality, the idea of Mohammad agrarian reform object from below, the Hatta ranked first as he was the originator National Committee on Agrarian Reform of Article 33 of the 1945 Constitution (Komite Nasional Pembaruan Agraria/ which became the legal basis of agrarian KNPA) stated on October 25, 2017 that reform constitution and many of his the main orientation of agrarian reform is thoughts since became a movement activ- still sectoral in agricultural, forestry, and ist in the 1920s until to be a prime minister rural areas. Whereas the aim of agrarian and vice president have a lot of influence reform must be multi-sector, so it is neces- in agrarian-related policy making in Indo- sary to design the settlement of the struc- nesia. tural inequality in the territories of mining, coastal, marine, small islands, and RESEARCH METHOD urban agrarian issues (KNPA, 2017). This study employed a qualitative ap- Some postcolonial experts have ana- proach in analyzing agrarian reform as a lyzed the characteristics of colonialism nationalism-related issue in Indonesia. In that influenced political, economic, social this study, agrarian reform idea and its and cultural aspects in ex-colonialized so- relation to nationalism issue were re- ciety. Ania Loomba (2015: 32) stated: viewed using a historical-comparative re- "'Colonialism' is not just something that search method. The method was regarded happens with the collusion of forces in- effective in exploring the issue from its side, but a version of it can be duplicated socio-historical root before the Indonesia from within.". Adherents of the postcolo- reached its independent and the its devel- nial approach regard this as "postcolonial opment until the 72th year of Indonesian conditions" which relate to lack of free- Independence (1945-2017) by concerning dom, such as oppression and injustices the ideas and practices related to the mat- that occur in ex-colonialized nation. In ter. Indonesia, post-colonial conditions con- Kreuger and Neuman (2006: 419) cern the preservation of the exploitation of explained that some founders of sociology economic resources for the interests of including Emile Durkheim, Karl Marx,

30 Paramita: Historical Studies Journal, 29(1), 2019 and Max Weber, had employed historical- longed to the village. Only the individu- comparative method in their studies. This alization process that has been in effect method has been extensively used in some for several decades has caused individu- studies in the field of sociology, such as al ownership to be small. Large property of land, up to hundreds of hectares social change, political sociology, social almost none. Thus, if Indonesian social- movements, and social stratification. In ism seeks its basis in an original society, the beginning of the First World War, his- the land reform system must be in line torical-comparative research suffered a with that. Basically, the right to use is decline because positivism formed the given to the person who cultivate the thoughts of sociologists to prefer conduc- land himself with his family and to the ing field research. Between the First cooperative. (Swasono & Rizal [Eds], World War and the 1950s, several sociolo- 1992: 164) gists conducted historical-comparative studies, such as Marc Bloch, George Hatta’s statement above stated, Homans, Robert Merton, and Karl Po- “Indonesia has the privilege because the land lanyi. Interest in historical-comparative has been originally belonged to the community, research started to increase in the 1970s belonged to the village.” Hatta saw the pecu- and continued to develop in the following liarities of the historical-materialism con- decades. After 1990, approximately 40 ditions of the Archipelago compared to percent of research articles published in the development of society from feudalism the most prestigious sociology journals in in Europe which gave rise to the thoughts the United States used this technique. Va- of modern capitalism and socialism. lidity of the data in this study used trian- When in Europe, during the feudal era, gulation of measure, it means we take sev- the lands were plotted by barons as op- eral measures of the same phenomenon pressors and exploiters, communal lands (Neuman, 2014: 166). In this study, litera- supported the small people ture study, documentation, and in-depth here. According to Muljana (1967: 37-40), interviews were also administered. in the Majapahit era, there was a law on the land use rights called Pratigundala RESULTS AND DISCUSSION called the book of the agrarian law in this Pre-Colonial Archipelago Society and era. In several articles of the religious law, Land Tenure there are also arrangements regarding the In his writing in 1963 entitled “Persoalan land use. The Nagarakretagama book stat- Ekonomi Sosialis Indonesia” Mohammad ed that land is basically the property of the Hatta stated that: king and the people who have the right to Every socialism was started with agrari- use it. It can be inferred that Majapahit an reform. This is not surprising be- rejected the large agricultural ownership cause in feudalism era land was not by protecting the rights of farmers’ land only a source of livelihood but also a use. source of power. Those who did not Onghokham explained in the com- have any land were forced to depend on position of feudal society that the king was their landlords. Eventually, they be- a state manifestation. Therefore, the king came slaves for their landlords. The did not consider himself to be the owner land became a tool of oppression and of the land in the broadest sense. The land exploitation by the ruling feudal class. Therefore, the social revolution that tenure model of that era gave farmers the came later overhauled the big property right to use the land to prevent the growth rights. Depending on the style of the of landlords. In Java, the wealth and pros- revolution, the lands can be distributed perity of the members of the elite were to peasants who have no land or are measured according to the number of peo- used as state property as happened in ple working on the land and not according USSR. In this case, Indonesia has the to the size of the land (Tjondronegoro & privilege because the land has been orig- Wiradi [Eds], 2008; 6). The lands in vari- inally belonged to the community, be-

31 Paramita: Historical Studies Journal, 29(1), 2019 ous kingdoms and tribes in the Archipela- The difference in material base of go were also controlled by farmers and the colonists influenced the way of coloni- gave birth to customary rights to land alism. Near the end of the 18th century, (communal land). Village democracy de- there was the Industrial Revolution in Eu- veloped under conditions of communal rope which was related to the invention of lands control. the steam engine by James Watt in 1776. Koentjaraningrat (2015: 72) noted Then, the 19th century was marked by that deliberation with a mutual coopera- important advances such as the discovery tion culture developed and functioned in of diesel engines, the use of electricity, the various regions, such as the Nagari com- development of chemistry, and new tech- munity in Minangkabau, the principle of niques of metal casting. During this peri- clan ties (marga) in Kuta community in od, many factories were growing with the the Toba Batak, the principles of dadia ties use of machines. Economic development in the Banjar community in South Bali, of society changes from commercial capi- and throughout Indonesia where the talism to industrial capitalism. Due to the broad kinship groups (extended family, exposure of the Industrial Revolution, in- clans, etc.) are the basis of the composi- dustries in the UK developed to overpro- tion of the village community. Moham- duction. British colonized to expand their mad Hatta added, "Social analysis shows market. Thus, at the beginning of their that genuine Indonesian democracy is colonialism system, they opened schools strong enough to survive under feudalism, and universities to encourage the in- because land as the most important pro- creased purchasing power of the colonial duction factor was the common property population. The British colonized to ex- of village communities, not belonging to pand the market so that from the begin- the king. "(Hatta, 2014: 104) ning the colonial system opened schools and universities to encourage increased Archipelago as a Country of Dutch Col- purchasing power of the colonial popula- onies tion. Colonialism damages the ownership of However, the Dutch who was late the community. After the VOC era mo- in carrying out the industrial revolution nopolized the trade in agricultural prod- experienced economic difficulties. In addi- ucts, the reign of Herman Willem Daen- tion, Diponegoro War made the Dutch dles (1800-1811) made a slight change in spending much money. Economic difficul- the structure of land tenure which gave ties grew after the separation of Belgium rise to private land, the era of Thomas (1830) which caused the Dutch to lose Stamford Raffles (1811-1816) imposed a much of their industry. The Dutch coloni- land tax, and the forced cultivation system alized to look for raw material in order to (cultuurstelsel) (1830-1870) exploited land massively develop through the forced cul- resources in guided ways, then in 1870 tivation policy (cultuurstelsel) and to mas- became the beginning of a period of eco- sively overhaul the land tenure structure nomic liberalization which overhauled the since the imposition of Agrarische Wet in structure of land tenure massively. The 1870. Education is limited and is intended economic liberalization policy was en- for certain strata only. Indonesia’s natural couraged by the opening of the Suez Ca- wealth was exploited. Its people were nal in the previous year and the develop- made cheap laborers because colonialism ment of the use of steamship resulting seizes its livelihood through the control of from the Industrial Revolution which land. made European-Asian trade traffic faster, Unlike in Europe when the French so that the Dutch East Indies government Revolution demolished feudalism at the felt the need to facilitate the arrival of end of the 18th century, in the Archipela- many investors. go modern capitalism entered through colonialism. Capitalism did not replace

32 Paramita: Historical Studies Journal, 29(1), 2019 feudalism but used it as a network and none.” Hatta wrote that statement in work culture. In the structure of feudal 1963. He said, "…for several decades…” society, the position of kings and regents This showed the starting point of the re- was very strong. This condition was used shuffle was implementation of Agrarische by the VOC who carried out a monopoly Wet in 1870. In context political economy, by giving them power as trade brokers. the regulation created conditions for capi- After the VOC’s role was replaced by the tal accumulation by undermining commu- Dutch East Indies government at the be- nity control for production sources ginning of the 19th century, the process of (Luthfi, 2011: 44). As a result of the imple- utilizing the feudalism system by colonial- mentation of Agrarische Wet 1870, the for- ism became increasingly hardened. When eign landlords appeared in the Dutch East the forced cultivation system was put into Indies. In 1939, land use in Java for large- effect in the period of 1830-1870, the colo- scale agro-industrial capitalists reached nial power network extended to the village 1.25 million ha or 9.47% of the overall level with the village head being foreman land in Java while in East Sumatera, there under the supervision of the regent. Mean- were 888 thousand ha or 26.35% used while, the feudal people were generally (Rachman, 2017: 42). In 1932, communal willing to be a part of the colonial power land in Java and Madura remained 13% because their power was not replaced. (Kahin, 2013: 20). However, the burden of the peasants be- The results of the overhaul of land came multiplied because they had to bear tenure were enjoyed by the Dutch colonial the interest of the colonial rulers and feu- and large investors. Ricklefs (1993: 152- dalists at once. In addition, the monopoli- 155) explained that in between 1900 and zation of production had clogged the eco- 1930, sugar production rose nearly four nomic system and openness of the society. times, tea nearly eleven times. Pepper, The relationship of colonialism- copra, tin, coffee and other products ex- feudalism continued to be maintained af- panded. About 70 percent of Dutch capi- ter the enactment of the colonial agrarian tal in 1929 was invested in Java, about rule, Agrarische Wet 1870. The enactment half of it in sugar. As for outside Java, of the regulation was related to the change many non-Dutch companies operate in of political power in the Netherlands from the agricultural and mining sectors. The conservatives to liberals who oppose the investment obtained many cheap laborers exploitation system by the state or govern- precisely from the farmers who lost their ment. However, later on, the Dutch and land. In 1931, added Ricklefs, more than other European foreign capital owners 306 thousand contract workers from Java had a wide opportunity to own businesses were employed in plantations in East Su- on Indonesian plantations. Since then, the matera and elsewhere. huge profits from the export of plantation From the exposure of Ricklefs, it is not crops had been enjoyed by foreign capital surprising that when the depression hit the while the great suffering had been felt by world in the 1930s, the people of the Indonesian people (Rachman, 2017: 32- Dutch East Indies who were the part of 34). The utilization of the structure and the structure of the global economy with- culture of feudal society by capital power out independent and capability suffered influenced the further development of the the severe impact. society in the control of economic resources and distribution of power until the Staged Effort for Agrarian Reform (1945 era of independence. -1960 Period) Hatta wrote that “Only the individ- Agrarian reform was actually intended to ualization process that has been in effect overhaul the land tenure structure for eq- for several decades has caused individual uity because the unequal land tenure ownership to be small. Large property of structure caused differences in power and land, up to hundreds of hectares almost ability to reach the access to capital and

33 Paramita: Historical Studies Journal, 29(1), 2019 means of production. However, as Hatta land controlled by Dutch sugar compa- had mentioned in the quotation above, the nies. Law No. 13 of 1948 was issued to reshuffle of land ownership depended on remove conversion rights in the Yogyakar- the style of revolution such as com- ta and Surakarta regions (Hatta, 2015: 48). munism and non-communist socialism Selo Soemardjan explained that with the backgrounds. In fact, a number of Asian Law No. 13 of 1948, all lands previously capitalist countries such as Japan, Taiwan, controlled by around 40 Dutch Sugar and South Korea also carried out agrarian companies in the two regions were provid- reforms to begin development. In South ed to the farmers. This action put an end Korea, landless peasants dropped dramati- to unequal competition regarding the ex- cally from around 50% to only around 7% ploitation of land and water between the after the implementation of agrarian re- large and strong sugar companies and un- form during the period 1945-1953. There organized farmers. After the departure of were also countries which implemented the Dutch colonial, these companies were the "mixed" economic system (with the managed by the Indonesian government. socialist element) such as India and Paki- These lands of companies were obtained stan and several countries which imple- by leasing contracts with individual farm- mented Socialists such as China and Vi- ers. (Tjondronegoro & Wiradi [Eds], etnam. Those countries had an amazing 2008: 124-5). economic growth. (Tjondronegoro & The Hatta Cabinet then prepared an Wiradi [Eds], 2008: 386-495). agrarian law that overhauled the land ten- From the beginning of the inde- ure structure nationally. Agrarian Com- pendence until the enactment of the UU- mittee was formed through the Presiden- PA (Basic Agrarian Law) in 1960, agrari- tial Decree dated 21 May 1948. As gov- an reform efforts had been gradually car- ernment’s response to BP KNIP (The ried out in Indonesia. At the beginning of Working Committee of Central Indone- independence, agrarian reform efforts sian National Committee) on September were carried out in a limited way. The 2, 1948, Prime Minister Hatta said that government was careful enough to over- this committee prepared a law limiting the haul land tenure in the era of independ- land tenure. In accordance with the old ence because they still needed national customary law in Indonesia, the land be- consolidation to deal with the physical longed to the people. The people were threat from the Netherlands. In 1945, the able to use the land as much as they need- Minister of Home Affairs abolished the ed with their families as long as they were privilege of the village called as perdikan in able to make use of it. Therefore, the he- the Banyumas area, Central Java. A perdi- reditary right to use which was equal to kan or free village generally had a special own property arose. Based on the spirit of right which was free from land tax pay- the Constitution, land can be utilized by ments. The village founder was appointed someone with their families as much as it as the village head and this position was could be done. Thus, the rights of wide declared hereditary for an unspecified land had to be abolished. The maximum time. Since perdikan village was deemed width of land allowed had to be studied no longer suitable with the state of revolu- carefully. Instead it must also be endeav- tion, the Law No. 13 of 1946 which did ored so that the land owned is enough to not recognize the village head and his guarantee the lives of farmers. (Hatta, family power over all his traditional privi- 2015: 46-7). leges was issued. (Tjondronegoro & Wira- This objective was achieved 12 years di [Eds], 2008: 124). Another land reform later on September 24, 1960, when Presi- effort was made in the time of Moham- dent Soekarno ratified and promulgated mad Hatta’s Cabinet after noticing the the UUPA in 1960. The UUPA of 1960 demands of farmers in Surakarta and Yog- was drafted by the Minister of Agriculture yakarta who wanted the distribution of Sadjarwo, a member of the Agrarian

34 Paramita: Historical Studies Journal, 29(1), 2019

Table1. Information of Indonesian Agricultural Land Tenure Structure in 1957

The Number of Rice Field Owners Area Less from 0.6- 1.1- 2.1- 5.1- 10.1- 20- 0.5 ha 1 ha 2 ha 5 ha 10 ha 20 ha thou- sands of ha West Java 1,395,307 359,424 156,216 56,283 8,153 1,449 363 Central Java 1,388,352 405,067 115,304 25,787 3,265 905 111 East Java 933,615 464,532 167,565 40,954 4,369 577 93 Sulawesi and 468,151 197,286 105,704 42,277 5,770 1,468 433 Nusa Tenggara Total 4,185,425 1,426,309 544,789 165,301 21,557 4,399 1,000

Source: Speech of the Minister of Agrarian Affairs of the Republic of Indonesia, Sadjarwo, at the Supreme Advisory Council Meeting on January 13, 1960, in Faryadi (2008).

Committee in 1948. Thus, the bill was The UUPA of 1960 has nationalism known as the “Sadjarwo Plan”. principle and pro-poor people. Article 1 “Sadjarwo Plan” was agreed by Core Cab- paragraph (2) stated that "All earth, water inet through its assembly on 22 July 1960 and space, including the natural wealth and the Plenary Cabinet in its assembly on contained within the territory of the Re- 1 August 1960. That plan was submitted public of Indonesia as the gift of God Al- to the DPR-GR (Dewan Perwakilan Rakyat mighty, are the earth, water and space of Gotong Royong or People’s Representative the Indonesian people and are national Council of Mutual Cooperation) which wealth.” was approved on September 14, 1960 In the explanation of the mentioned (Harsono, 2016: 130). The UUPA of 1960 Law above, it can be inferred that the aimed to overhaul the imbalance in the earth, water, and space in the territory of land tenure structure which at that time the Republic of Indonesia whose inde- can be seen in table 1. pendence was fought for by the nation as whole becomes the rights of the nation as Agrarian Reform as National Agenda whole, is also the right of the Indonesian and Its Implementation Problems (1960- people, so it is not merely the rights of the 1965) owners. Thus, the earth, water, and space Based on the UUPA of 1960, Indonesian in the territory of the Republic of Indone- Agrarian Reform included 5 programs sia not only become the rights of the own- (Panca Program) which were: (1) Agrarian ers but also become the right of the Indo- Law Renewal through legal unification nesian nation. Likewise, the lands in the which concluded a national concept and regions and islands are not merely become guarantees legal certainty; (2) Elimination the rights of the indigenous people of the of foreign rights and colonial concessions region. With this understanding, the rela- on land; (3) Gradually putting an end on tionship between Indonesian nation and feudal exploitation; (4) Changing the land the earth, water and space in Indonesia ownership and control as well as legal re- are a kind of customary right relationship lations concerned with the exploitation of raised at the highest level namely the level land in realizing equitable prosperity and of all regions of the country. justice; (5) Planning inventory and allot- Article 7 contains a principle that ment of the earth, water, and natural re- ownership and control of the land that sources contained therein and their exceeds the limit are not permitted be- planned use in accordance with the carry- cause such matters are detrimental to the ing capacity and capabilities (Harsono, public interest. Article 10 paragraphs (1) 2016: 3-4). and (2) are formed that “Every person and

35 Paramita: Historical Studies Journal, 29(1), 2019 legal entity that have a right to agricultural going on was “communist” way because land on its principle must be obliged to land ownership rights were still recog- work on or actively pursue it himself, by nized. People could still have land for gen- preventing extortion methods.” The Arti- erations, only the extent of the property is cle 11 paragraph (2) states, “Differences in regulated, both maximum and minimum, the state of society and the legal needs of and the land rights are declared to func- the people where it is necessary and not in tion socially, and the state and legal com- conflict with national interests are consid- munity units have higher power than indi- ered by guaranteeing the protection of the vidual property rights. (Sukarno, 1964: interests of the economically weak group.” 122-3). The importance of people’s efforts as a To regulate the implementation of priority for agrarian reform is mentioned agrarian reform from the national level in Article 12 paragraph (1), “All joint ef- led by the president until the village forts in the agrarian field are based on the level committee, Presidential Decree No. 131 of 1961 concerning the Organi- mutual interests in the framework of na- zation for the Implementation of Agrar- tional interests and in the form of coopera- ian Reform was issued. In that Decree, tives or other forms of mutual coopera- Sukarno asserted that agrarian reform tion.” For this reason, the government is was an absolute part of the Indonesian obliged to prevent the existence of organi- Revolution and at the same time the zations and individual business in the launching of the National Universe De- agrarian field that are private monopolies velopment Plan (Pembangunan Semesta (Article 13 paragraph [2]). The monopoly Nasional Berencana) on January 1, 1961, problem is not only from the private busi- he also ordered to start the agrarian re- ness but also from the government. Mo- form. nopoly-government efforts have to be prevented from harming the majority people. However, the implementation of agrarian Therefore, monopolistic government busi- reform was hampered by the bureaucrats ness can only be carried out by law who were corrupt and pro-landlord. The (Article 13 paragraph [3]). Then, Article local agrarian reform committee was often 17 regulates the effort of land tenure re- controlled by the landlords and their sup- structuring with the provisions of maxi- porters. The owner of wide land often sep- mum and minimum land area. Land that arated their land ownership among their exceeded the maximum limit was taken family members and hid the land by regis- by the Government with compensation. tering it as a land of mosque, religious Then, that land was distributed to the peo- school, or temple. In addition, the mem- ple in need according to the provisions in bers of agrarian reform committee often the Government Regulation. The maxi- distributed land to friends and relatives mum limit was regulated to prevent land instead of the landless farmers. Commit- monopoly. Meanwhile, the minimum lim- tee’s slow work, colluding with landlords, it was set to make farmers get proper in- and corrupt encouraged the communists come to make themselves and their family to take their initiative. Barisan Tani Indone- live properly. sia (BTI or Indonesian Farmers' Union) In a state speech on 17 August 1960 encouraged and led farmers to take initia- or a month before the ratification of the tives to occupy disputed land or to refuse UUPA of 1960, Sukarno asserted that to give crops to landlords or creditors land reform means strengthening and ex- (Rocamora, 1991: 409-11). The BTI/ PKI panding land ownership for all Indonesi- action which became known as the “PKI ans, especially the peasants. Land cannot Unilateral Action” sparked horizontal and be an instrument of exploitation, let alone ideological conflict in the countryside. exploitation of foreign capital to the peo- Although agrarian reform was a na- ple of Indonesia. He also reminded people tional agenda in which PNI played an im- not to think that the land reform that was portant role in producing the UUPA of

36 Paramita: Historical Studies Journal, 29(1), 2019

1960, the PNI itself failed to oversee the munist, they are afraid to appear in their implementation of the UUPA of 1960. It land and most of them move to the city. It was because many of the PNI activists enlarges the chance to get the lands back became landlords, corrupt, and sided with to the previous land owner and to elimi- landlords. In Central Java, East Java, and nate some of hard-working result of the Bali, PNI had many members and sup- organizing committee of land reform porters among groups of landowners. (Rachman, 2017: 148). DPD PNI used its influence to help land- Then New Order began the exploi- lords evade the UUPA (Rocamora, 1991: tative development policy. Basic Agrarian 411). Law (UUPA) of 1960 that had been estab- Anti-PKI political forces also tended lished to protect farmers’ rights upon their to slow down the implementation of land was considered inappropriate with agrarian reform. They also linked this the characters of the New Order develop- populist national program with the com- ment plan. Although UUPA of 1960 was munist movement. After the incident oc- not revoked but its existence was weak- curred on 30 September 1965, PKI refu- ened. UUPA of 1960 was placed as a sec- gees abroad issued an auto-critical article toral regulation that did not cover other entitled “Building the PKI along the fields, even though the sector involved Marxist-Leninist Line to Lead the Peo- agrarian matters, such as the forestry and ple’s Democratic Revolution in Indone- mining sectors. Since the early New Or- sia” in the Indonesian Tribune, Tirana der, laws and regulations that exploited (Albania), Year 1, Number 2, January natural resources were born, namely For- 1967. They explained the reason for the eign Direct Investment Law (PMA) Year PKI’s support for the UUPA of 1960: 1967, Domestic Investment Law (PMDN) The agrarian revolution which is the Year 1968, Law Number 5 Year 1967 on essence of the Indonesian revolution’s pre- Principles of Forestry, and Law Number sent stage is not an agrarian reform of the 11 Year 1967 on Basic Provisions of Min- bourgeois type that will only pave the way ing. UUPA Year 1960 is not being a refer- the development of capitalism in the coun- ence anymore. tryside. It will liberate the farm laborers, Secretary General of The Agrarian poor peasants, and middle peasants from Reform Consortium (KPA), Dewi Karti- the feudal oppression of foreign or native ka, explained that the spirit of Basic landlords, by confiscating the lands of Agrarian Law is the Umbrella act, all de- landlords and freely distributing them to rivative laws related to the agrarian farm laborers and poor peasants individu- sources must refer to the basics. There ally to be their private property. (Feith & should be no monopoly, no exploitation, Castles [Eds], 1970: 273-4) mutual cooperation, and individual rights are fulfilled but they have social functions. Termination of Agrarian Reform in New “That should be the basics which then be- Order Era (1966-1998) comes the principles of derivative laws, The emergence of New Order stopped the either forestry, plantation, mining, coal whole application of agrarian reform. A and mineral mining. However, the sec- number of wide land owners (whose land toral Law becomes invulnerable, nothing is being an object of land reform) try to get refers to the UUPA,” she said (Interview back their ‘ownership’ formerly. Relatives on November, 24 2017). Since New Or- of the new land owner who are killed or der, foreign capital mostly flow to Indone- arrested are succeeded to prevented to cul- sia through transnational corporations tivate the granted land of that land reform operated in Indonesia and since economic program. Even that support is frequently deregulation year 1988 Indonesia becomes supported by the civil authority and mili- increasingly opened to the transnational tary. New land owner, or their relative corporations. The large scale of the open- that is indicted to sympathize to the com- ing of plantation, mining, industry, and

37 Paramita: Historical Studies Journal, 29(1), 2019 forestry marginalizes the tenure of socie- Susilo Bambang Yudhoyono (2004-2014), ty’s land and frequently causes agrarian there are at least 1,520 agrarian conflicts conflict. Nationally, according to KPA, at happened in the entire regions of Republic least there are 10.89 million hectares of of Indonesia, with the conflict areas cover- the land disputes by sacrificing at least ing 6.5 million hectares and more than 1.19 million of KK in 286 Regency/City 977,103 of Head of Household should during 1970-2001 (Tjondronegoro & face the protracted conflict (Rachman & Wiradi [Ed], 2008: 407). Setiawan, 2016: 13). Indeed, New Order government in- The modern barons keep growing tensely conducted a transmigration pro- luxuriantly in the reform era, a conglom- gram, but it aimed more to move inhabit- erate company can own hundreds of thou- ants from the crowded regions to the re- sand hectares of land. Areas of Industrial gion who have small inhabitant Forest Plantantation (Hutan Tanaman In- (resettlement). The purpose of agrarian dustri/ HTI) reach 9.39 million hectares reform as referred to UUPA Year 1960 is and managed by 262 companies with the the correction of land inequality tenure. license until 100 years. Moreover, the are- Usep Setiawan explained, based on note as of production forest concessions in In- of Forestry and plantations Minister, there donesia reach 21.49 million hectares man- were 500 Forest Tenure Rights (Hak Pen- aged by 303 companies of Forest Tenure gusahaan Hutan/ HPH) which operated to Rights only. Compared to the license of cultivate around 55 million hectares of Community Plantation Forests (Hutan productive forest in Indonesia until 1998. Tanaman Rakyat/ HTR) which only has In mining sector, PT Freeport Indonesia 631,628 hectares. In the field of planta- that dig gold in Papua had concessions tion, there are at least 9,4 million hectares through contract of work covering 2.9 mil- given to the 600 companies of oil palm lion hectares (1991). Then plantation sec- plantation only. Government of SBY also tor through the Cultivation Right (Hak establish license of 2 million hectares of Guna Usaha/ HGU) was in the highest land in Merauke to the only 41 companies rank in concentration of land tenure in through project of Merauke Integrated Indonesia. Based on the Large Plantation Food and Energy Estate (MIFEE). Census (1990-1993), there were around (Rachman & Setiawan, 2016: 12). On the 3.80 million hectares of plantation con- other hand, many rice fields are moved to trolled by 1,206 companies and 21 cooper- the hands of investor group. Number of atives, with the average 3,096,985 hectares farmers that change into the farm laborers controlled by each company. are increasingly larger because they do not (Tjondronegoro & Wiradi [Eds], 2008: have their own rice fields. The Indonesian 406). Finally, the distribution of land ten- Ministry of National Development Plan- ure was more inequal in New Order era ning (2014: 94-95) noted that the number and many citizens were separated from of agricultural business households in In- the life sources, namely wide and rich nat- donesia kept on decreasing. Based on the ural resource. results of the last Agriculture Census in 2013, there had been of 26.14 million Dynamics of Agrarian Reform in Refor- households, a decrease of 5.10 million masi Era (1998-2017) households or 16.32 percent compared to The fall of Soeharto’s power 1998 indeed the 2003 Agricultural Census with 31.23 ended the centralistic power of New Or- million agricultural households. In fact, der. However, political democratization most people work in the agricultural sec- had not overhauled tenure structure of tor so that the impoverishment of the inequal economic sources, included land peasants has a broad impact on the peo- as a vital economic source. Many agrarian ple's economy. conflicts also appeared. KPA noted, dur- In other people's sectors, the ability ing ten years of the government era of of fishermen is still limited, most of them

38 Paramita: Historical Studies Journal, 29(1), 2019 are still workers who work for boat owner. Therefore, a system that builds individ- ers. There is also small seller who is insist- ual ownership in order not to move quick- ed by the modern sector and rejected by ly is required, one of which is to ensure the state through the apparatus of security that there are collective economic institu- and order (Tramtib) without giving solu- tions, such as cooperatives, farm banks, tion. The separation of citizen from the credit union, or if combined with the Vil- life sources pushed the massive proletari- lage Law there are Village Owned Enter- anization. With the workforce of low edu- prises (BUMDes). “The cooperative is cated, the flow of urbanization always also a safety net, so that the farmer does adds urban poor societies. Since the New not easily pawn the certificate to the bank, Order, manufacture industry developed but it is guaranteed to the cooperative tends to be footloose industry by considering owned by the farmers themselves,” she more on the availability of primary mate- explained. (Interview on November 24, rial, low production cost, and location of 2017). the factory is easy to move to another Dewi Kartika also highlighted the country, such as textile and shoes. system of inheritance rights that made the To improve destiny, many people land can be divided. He gave an example compete to become a worker in abroad. in France that there are agricultural areas The higher salary in abroad becomes the that do not allow the conversion of land to pull factor and situation of domestic mar- non-agriculture. France has a system that ket of workers that is full of supply in the farmers who want to work on land will be formal employment becomes the push fac- given the land, then when he is no longer tor. Jobs in informal sector is generally a farmer, the land is returned to the coun- characterized by the productivity and low try and reopened for other renters. Thus, income. (Supriana & Nasution, 2010: 43). its designation is not changed. She ex- In fact, majority of around 7 million citi- plained: zens of Indonesia who work in abroad In Indonesia, there is no system that become unskilled labor and worker of ensures that the land of agrarian households without a sufficient skill reform’s result is not converted. Agrari- (unskilled) (Kaligis, 2010). In Malaysia, an reform is attached to the agricultural sector, so what kind of system that en- the social-economic position of Indone- sures the results of agrarian reform can sian worker creates epithet “indon” which be sustainable, not quickly lost due to has connotative meaning similar with the the inheritance rights system, in order term “inlander” in colonial period. not to be broken into smaller. If it's get- In the era of President Jokowi, the ting smaller, it is easy to sell because it government programmed a land area of 9 is not profitable to farm. (Interview on million hectares as a plan for land redistri- November 24, 2017). bution and legalization of assets under the umbrella of the agrarian reform. However, Dewi requested that the Government of in addition to questioning the land objects Jokowi immediately legalized the Presi- and recipient subjects who have not revise dential Regulation on Agrarian Reform as the land tenure structure, Secretary Gen- a legal basis to ensure that agrarian reform eral of KPA, Dewi Kartika noted the im- can work in areas where there are inequal- portance of access reform, namely the post ity and agrarian conflicts. According to -land certification support program for him, the draft of the Presidential Regula- sustainable land ownership programs. Ac- tion already exists in the State Secretariat, cording to her, do not let the newly grant- although it is not too positive, but there ed land in the short term pawned to the are rules, objects and priorities of the sub- bank. Even though that is the right, but jects (recipients), and also the agrarian the agrarian reform actually wants to reform institutions from the center to the guarantee that welfare is sustainable, and regions. “The Presidential regulation must the land does not fall into the capital own- make legal breakthroughs, for example,

39 Paramita: Historical Studies Journal, 29(1), 2019 how to solve with PTPN and Perhutani. Dewi Kartika, gave an example in Man- “If we only use the existing legal basis, gonwati, Tasikmalaya, the Cultivation this agrarian reform will get stuck, they Right was managed by a community co- probably choose the easiest one,” Dewi operative that managed rubber. The coop- explained (Interview on November 24, erative immediately cut its value chain, 2017). Finally, the draft of Presidential the processed products moved directly to Regulation was ratified as Presidential Goodyear's tire factory, without going Regulation Number 86 of 2018 concern- through the middlemen chain. With the ing the Agrarian Reform on September 24, Cultivation Right owned by cooperatives, 2018. This regulation regulates the aspects the people enjoyed the benefits. Dewi ex- of asset management and land access by plained, it is not impossible for the com- conducting land redistribution, land legali- munity to become the main producer if zation, and community empowerment. they have been linked to the main market At the beginning of the section by cutting the longer production chain. above, Hatta concluded, “If Indonesian Thus, the people are not exploited in socialism seeks its basis in an original soci- price, but they directly negotiate with buy- ety, the land reform system must be in line ers. “It is a cooperative spirit that the culti- with that. Basically, the right to use is giv- vation of land, and the management of en to the person who cultivate the land agricultural production finally requires a himself with his family and to the cooper- system that is carried out collectively or ative.” Here, Hatta wants the people to mutual cooperation. In the UUPA, the become a national economic power. The forum is a cooperative,” she said. division of land through agrarian reform is (Interview on November 24, 2017). not only given to smallholders and farm Ideally, the state fights for agrarian laborers individually, but also to coopera- reform because the state is present as the tives as the people’s collective economic duty holder and it has a power. But from organization. Hatta is a drafter of Article time to time, various political and capital 33 of the 1945 Constitution. If the cooper- interests often influence the policy makers ative is a manifestation of Article 33 para- and its implementation. Therefore, while graph (1), agrarian reform is a concrete fighting for the state to prioritize agrarian step of Article 33 paragraph (3). The meet- reform to improve the welfare of the peo- ing point of Hatta’s ideals was the ar- ple, agrarian reform needs to be encour- rangement of economic resources with aged from the bottom, from the communi- social justice. As mandated by the consti- ty, for example by building collective eco- tution, the state must prioritize granting nomic power such as cooperatives that the Cultivation Right and Right to Use to involve the community’s participation. As village cooperatives rather than large in- a post-colonial country, the efforts to build vestors, so that cooperatives can regulate collective economic power through coop- management and profit sharing for the eratives are felt important to improve the farmers. bargaining position of the people in facing However, in society, especially since economic life controlled by large inves- the New Order, the image of cooperatives tors, both foreign and domestic conglom- has been still inherent as Village Unit Co- erates, who exploit natural resources and operative (KUD) which is bureaucratic place the people as a cheap source of la- and controlled by the government, so that bor. it does not become a major economic Thus, if later the state policy priori- power of the community. This is far from tizes the granting of Right to Use or the the aspirations of Hatta who wants that Cultivation Right to the people’s coopera- cooperatives to be a collective economic tives rather than large-scale entrepreneurs, forum that grows from the bottom. In fact, local communities are better prepared. the idea of Hatta also had a role model in Mastery of the material basis of trade by the reform era. Secretary general of KPA, cooperatives can be the basis for empow-

40 Paramita: Historical Studies Journal, 29(1), 2019 ering farmers - supported by the improve- as a forum for people’s collective economy ments in management, market access, is a constitutional mandate for the regula- credit, and so on. If for example, each vil- tion of economic resources based on social lage cooperative manages 50-100 hectares justice. of the agricultural perennial land, then with 74,754 villages in Indonesia (Permendagri/Domestic Affairs Ministerial REFERENCES Regulation Number 56 of 2015), econom- Faryadi, E. (2008). “Sebab-Sebab yang ic progress which is in favor of lower-class Melatarbelakangi Keterlibatan Kaum people and national food sovereignty can Tani dalam Politik Land Reform”, pa- be encouraged. per at the 15th INFID (International NGO Forum on Indonesian Develop- ment) Conference, October 27-28, CONCLUSION 2008. Agrarian reform as a matter of national- Feith, H. & Castles, L. (Eds.). (1970). ism fights for the sovereignty of the nation Indonesian Political Thinking 1945-1965. and people's life in it based on social jus- Ithaca: Cornell University Press. tice, which has been initiated since the Harsono, B. (2016). Hukum Agraria Indonesia: 1920s movement era by the nationalists Sejarah Pembentukan Undang-Undang with Mohammad Hatta as the figure. For Pokok Agraria, Isi dan Pelaksanaannya hundreds of years, colonialism monopo- (Jilid 1: Hukum Tanah Nasional). Jakarta: lized trade traffic and damaged land ten- Penerbit Universitas Trisakti. Hatta, M. (1998). Karya Lengkap Bung Hatta ure in the community. As a post-colonial (Buku 1): Kebangsaan dan Kerakyatan, country, this wide and rich country still Jakarta: LP3ES. preserves the exploitation of economic Hatta, M. (2014). Demokrasi Kita: Pikiran- resources by the large investors and places Pikiran Tentang Demokrasi dan its population as a cheap source of labor. Kedaulatan Rakyat. Jakarta: PT Kompas The transformation of social justice re- Media Nusantara. quires agrarian reform to overhaul the ine- Hatta, M. (2015). Mendayung Di Antara Dua quality in the structure of land tenure Karang. Bandung: Sega Arsy. which causes differences in power and Kahin, G.M.T. (2013). Nasionalisme dan ability to get the access to capital and facil- Revolusi Indonesia. Depok: Komunitas ities of production. Agrarian reform on Bambu. Kaligis, R.AW. (2010). Keluar dari Jeratan the basis of nationalism requires the pres- “Bangsa Kuli”. Kompas, December 6, ence of the state as the duty holder and the page 6. authority that has the power to correct Keputusan Presiden No. 131 Tahun 1961 tentang inequality. The aim is not to erase the Organisasi Penyelenggaraan Reforma ownership rights, such as the ideals of Agraria. communism, but the distribution of fair Kementerian Perencanaan Pembangunan Na- and equitable control of production assets, sional/ Bappenas. (2014). Analisis Ru- as well as fighting for national food sover- mah Tangga, Lahan, Dan Usaha Pertanian eignty. Agrarian reform does not only re- Di Indonesia: Sensus Pertanian 2013. Ja- store land tenure to the people but also karta: Kementerian Perencanaan Pem- requires access reform to ensure the sus- bangunan Nasional/ Bappenas, Direktorat Pangan Dan Pertanian. tainable welfare of the people. It requires Koentjaraningrat. (2015). Kebudayaan, organizing system, object, subject priority, Mentalitas, dan Pembangunan, Jakarta, and also adequate agrarian reform institu- PT Gramedia Pustaka Utama. tions from the center to the regions. To Komite Nasional Pembaruan Agraria improve the bargaining position of the (KNPA). (2017). Refleksi Tiga Tahun people, agrarian reform also needs to be Reforma Agraria Pemerintahan Jokowi-JK: pushed from bottom, by building collec- Kembalikan Pada Prinsip dan Tujuan tive economic power through coopera- Pokok Agenda Reforma Agraria Sejati. tives. Agrarian reform with cooperatives KNPA Statement of October 25, 2017

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