The decrease in agricultural land area has an impact on the availability of local food, which in turn causes food price fluctuations at the consumer level.
s Indonesia faces the growing challenge of shrinking agricultural land, the government is preparing a policy that will allow the conversion of agricultural land to facilitate the ambitious 3 million houses initiative and support industrial downstreaming. While land use conflicts for development purposes are not new, the absence of focused and thoughtful policies may only exacerbate existing problems.
Food self-sufficiency remains a key priority for the current administration. President Prabowo Subianto has even set a target to achieve self-sufficiency in rice and corn by 2027.
However, this goal is unattainable without securing sufficient agricultural land. At the same time, the government is pushing forward with a massive housing project and an industrial downstreaming agenda, both of which require large expanses of land. This clash between food security and development highlights the growing tension over land use in Indonesia.
The ongoing struggle between food needs and development has spurred the government to draft a new regulation, the National Spatial Planning (PP RTRW) for 2025-2045. This regulation proposes that protected rice fields in Java, which are being converted for the housing and industrial programs, be compensated by lands outside Java with similar agricultural productivity.
Land, as a finite and non-renewable resource, is at the heart of this issue. While land conversion is often seen as a necessary strategy to meet development needs, unregulated conversion can lead to severe long-term consequences, including environmental degradation, agrarian conflicts and even exacerbating the climate crisis. Strategically converting protected rice fields to accommodate development projects is fraught with risk.
Historical accounts, such as Harriet Winifred Ponder's Java Pageant describe Java as amour propre, a region rich in agricultural fertility. Ponder notes various interesting things about the fertility of agriculture, plantations and the dynamics of agriculture in Java which is called one of the most fertile in the world.
However, the golden age seems to be fading. Entering the 1990s, there was a significant increase in population on the island of Java. The phenomenon of urbanization is one of the causes.
According to the 2020 population census, Java is now inhabited by approximately 152 million people, over half of Indonesia’s population, despite comprising just 7 percent of the country’s total land area. This immense pressure on the land to meet food, housing and infrastructure needs has led to widespread agricultural land conversion.
A study shows that Indonesia currently loses around 187,720 hectares (ha) of agricultural land per year, with most of this being used for housing (48.96 percent) and industrial development (36.5 percent). This trend is particularly pronounced in Java. Given that rice remains the staple food for most Indonesians, it is critical to note that Java contributes approximately 58-60 percent of the nation’s total rice production.
The decline in agricultural land directly correlates with a decrease in production volumes, which ultimately impacts food availability.
Utilizing Statistics Indonesia (BPS) data, in 2023 there was a decrease in the area of rice fields by around 150,993 ha in Java, which resulted in a loss of 511,225 tonnes of rice. To cover the deficit in rice availability, rice imports were opened. This phenomenon is like an endless cycle, far from the ideal concept of self-sufficiency.
Urbanization, particularly in peri-urban areas, has dramatically increased land value for development. Landowners see greater financial incentives in converting agricultural land to non-agricultural uses, as the profitability of agricultural businesses often pales in comparison. Local governments may also prioritize converting agricultural land to housing or industrial zones, seeing these as more lucrative options, especially from a tax revenue perspective. Unfortunately, this reflects the broader neglect of agriculture as an attractive sector in Indonesia’s economic landscape.
Law No. 41/2009 on the protection of sustainable agricultural land explicitly forbids the conversion of designated agricultural land unless there is a compelling public interest, with compensation provided. This provision is the legal foundation for the government’s proposed changes in the National Spatial Planning policy.
However, like a double-edged sword, the law also allows for the conversion of agricultural land for the public interest, as long as replacement land is provided. This clause is the government's reference in compiling the 2025-2045 National RTRW policy.
The conversion of agricultural land is not without consequences. It not only threatens food self-sufficiency, but also has various negative implications. The decrease in agricultural land area has an impact on the availability of local food, which in turn causes food price fluctuations at the consumer level.
In addition, land conversion also threatens the loss of income sources for farmers. Farmers who lose their cultivated land often have difficulty finding alternative jobs in the non-agricultural sector, ultimately creating unemployment in rural areas.
Balancing the interests of food self-sufficiency, housing and industrial development is easier said than done. But it does not mean that one must be sacrificed to achieve the other. Rather than converting agricultural land for housing and industrial projects, the government should consider prioritizing the transmigration agenda as a win-win solution.
The Agrarian Reform Consortium has recently urged the government to utilize the 7.24 million ha of idle land, primarily from former Land Use Rights (HGU) and Building Use Rights (HGB), much of which is located outside Java. These areas are often underutilized and present an opportunity for both food production or other development agenda.
By investing in transmigration, the government could redistribute people from densely populated areas in Java to other regions then provide them with capital and training to manage land resources according to its intended use. For example, if the idle land is suitable for agricultural purposes, transmigrants can be directed to cultivate food crops to contribute to food self-sufficiency.
In addition, the 3 million houses initiative can be realized in transmigration areas, providing a decent living ecosystem for the transmigrants. This step is not only a solution to the housing backlog, but will also stimulate infrastructure development in less developed regions.
Furthermore, industrial downstreaming efforts could be focused on these transmigration areas, creating jobs and stimulating local economies. This approach would not only alleviate pressure on Java, but would also contribute to more equitable national development.
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The writer is a food systems advocate with more than eight years of professional working experience in the areas of food, agriculture and the environment.
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