A new land management reform initiative aims to help Indonesia achieve its climate objectives, with the World Bank's Board of Executive Directors approving a US$653 million project on September 30, 2024. The Integrated Land Administration and Spatial Planning (ILASP) project is designed to reduce greenhouse gas emissions associated with land conversion, particularly in the Forestry and Other Land Use sector. This effort aligns with Indonesia's target to cut emissions by 31 percent by 2030 and supports the Golden Indonesia 2045 vision.
Indonesia has registered over 9 million hectares of land for community and smallholder ownership since launching its Agrarian Reform Program in 2015. The ILASP project seeks to secure rights for more than 11 million individual and collective landholders, focusing on enhancing land tenure security to promote social inclusion, economic growth, and reduced land-based emissions.
"We appreciate the World Bank’s support in accelerating the Agrarian Reform program, particularly in land registration," said Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency (ATR/BPN) Agus Harimurti Yudhoyono. "Through further collaboration in the ILASP project, we expect to improve our detailed spatial planning, which will increase investors’ confidence and eventually impact Indonesia’s economic growth."
The ILASP project includes developing over 500 climate-informed spatial plans that identify areas vulnerable to climate change impacts. Communities will participate in these planning processes. The project also aims to close the gender gap regarding land rights by increasing women's involvement in registration and spatial planning processes.
Targeting systematic registration of 4.8 million hectares, the project builds on participatory village-based methods from an earlier One Map initiative. It leverages expertise from Indonesia’s Geospatial Information Agency (Badan Informasi Geospasial or BIG) using remote sensing technologies for large-scale base maps. Integration of spatial planning and land administration will occur through a digital Land Information System.
"Building upon our long-standing support to Indonesia’s land sector in the past 30 years, the World Bank stands ready to further provide technical and financial assistance," said Carolyn Turk, World Bank Country Director for Indonesia and Timor-Leste. "Through strong collaboration with the Ministry of ATR/BPN, BIG, and the Ministry of Home Affairs, the ILASP project will proactively work toward creating a positive enabling environment."
The initiative is expected to enhance business licensing processes, infrastructure development, public services improvement, and resilience against climate-related disasters. By increasing tenure security, it aims to boost rural living standards while improving natural resource management. Government entities may benefit from increased revenue through higher property taxes alongside improved decision-making capabilities.