Final Report Decentralizing Indonesia's Land Administration System: Are Local Governments and Land Offices Ready? Evidence from 27 Districts Commissioned by World Bank Jakarta Office Badan Pertanahan Nasional Submitted by Dr.Thomas Rieger Dipl.-Betrw. Faisal Djalal Drs. Edwar St. Pamuncak Ir.Rusdi Ramon Bedjo Soewardi, M.Sc Jakarta, June 2001 COMO GmbH/PT COMO Konsultindo Jl. Perdana No. 2 Jakarta 12250 Phone +62 21 3854943 Fax +62 21 5853834 E-Mail [email protected] Content CONTENT ................................................................................................................................................................................2 ANNEXES .................................................................................................................................................................................4 ILLUSTRATIONS..................................................................................................................................................................4 TABLES .....................................................................................................................................................................................5 0 EXECUTIVE SUMMARY..........................................................................................................................................6 1 INTRODUCTION........................................................................................................................................................ 10 1.1 GENERAL BACKGROUND....................................................................................................................................... 10 1.2 DECENTRALISATION............................................................................................................................................... 12 1.2.1 General Background .................................................................................................................................... 12 1.2.2 Decentralisation’s implications for the land administration system ................................................... 14 1.2.2.1 BPN before decentralisation........................................................................................................................ 14 1.2.2.2 Challenges of decentralisation ..................................................................................................................... 16 1.2.2.3 Twists and turns in decentralising the land administration system ............................................................. 19 1.2.2.4 Options lying ahead for the land administration system under decentralisation......................................... 23 1.3 CADASTRAL REFORM............................................................................................................................................. 23 1.4 PURPOSE OF THE STUDY........................................................................................................................................ 26 1.5 ORGANISATION OF THIS REPORT .......................................................................................................................... 27 2 BASIC CONCEPTS AND METHODOLOGICAL CONS IDERATIONS .................................................. 29 2.1 BASIC CONCEPTS.................................................................................................................................................... 29 2.2 T HE QUALITY MANAGEMENT APPROACH AS CONCEPTUAL FRAMEWORK................................................... 30 2.3 T HE STUDY AS AN OFFER OF SUPPORT TO A PROCESS OF CHANGE.................................................................. 35 2.4 SURVEY DESIGN ..................................................................................................................................................... 36 2.3.1 Data sources and data collection approach............................................................................................ 36 2.3.2 Sample selection............................................................................................................................................ 36 3 MAJOR FINDINGS FRO M THE SURVEY........................................................................................................ 39 3.1 INTRODUCTION....................................................................................................................................................... 39 3.2 DEMAND FOR LAND ADMINISTRATION SERVICES .............................................................................................. 39 3.2.1 Demand for land administration services from the local population.................................................. 40 3.1.1.1 Major motivations for public demand for land administration services...................................................... 41 3.1.1.2 Major quality expectations by the public with regard to land administration services ............................... 42 3.2.2 Demand for land administration services from local government institutions.................................. 45 3.2.3 The question of land administration services for land under hak ulayat status ................................ 48 3.3 CAPACITY FOR SERVICE DELIVERY...................................................................................................................... 53 3.3.1 Geodetic framework ..................................................................................................................................... 54 3.3.2 Physical infrastructure................................................................................................................................. 56 3.3.3 Measuring equipment................................................................................................................................... 59 3.3.4 Computerisation............................................................................................................................................ 60 3.3.5 Vehicles ........................................................................................................................................................... 63 3.3.6 Human Resources ......................................................................................................................................... 64 3.3.7 Managerial issues ......................................................................................................................................... 67 3.3.7.1 Authority over forest lands.......................................................................................................................... 67 3.3.7.2 Development Planning of Local Land Offices ............................................................................................ 69 3.3.7.3 Involvement of village administration......................................................................................................... 69 3.3.7.4 Data exchange with Land Tax Offices (KPBB) .......................................................................................... 70 3.3.7.5 Conflict resolution....................................................................................................................................... 72 3.3.7.6 Corruption.................................................................................................................................................... 72 3.3.7.7 Problems in the chain of command............................................................................................................. 76 3.3.8 Data on output and future workload of local Land Offices................................................................... 77 3.3.9 Remuneration of BPN staff.......................................................................................................................... 79 2 3.4 FINANCIAL VIABILITY OF THE LAND ADMINISTRATION SYSTEM ..................................................................... 82 3.5 CONCLUSIONS ......................................................................................................................................................... 86 Demand ............................................................................................................................................................................ 86 3.5.2 Service Delivery Capacity ........................................................................................................................... 87 3.5.3 Implications for reform ................................................................................................................................ 89 4 GOOD PRACTICES ................................................................................................................................................... 91 4.1 T HE CONCEPT OF GOOD PRACTICES .................................................................................................................... 91 4.2 GOOD PRACTICES/”SUCCESS STORIES ” FOUND IN THE SURVEY ..................................................................... 92 4.2.1 Improving enablers for the work of local Land Offices/Dinas Pertanahan....................................... 93 4.2.1.1 Vision & Strategies...................................................................................................................................... 93 4.2.1.2 Leadership ...................................................................................................................................................