Peasant Empowerment Trough Quasi-Agrarian Reform Program, Evidence from Indonesia

Abstract

This article introduces the concept of quasi agrarian reform and critique of the de Soto theory of formal property.  According to writer, agrarian reform, both redistribution and legalization of assets, must be run in Indonesia. The Indonesian government follows the de Soto theory by implementing the Farmers Empowerment Program. The objective of the quasi agrarian reform program is to encourage farmers to take credit in banks provided by the Government under the scheme Credit for the People (KUR).The importance of agrarian reform in Indonesia to empower farmers to solve various structural problems, such as poverty, unemployment and inequality. Implementation of an asset legalization program in this paper is called quasi agrarian reform, not in line with the original aspirations. Farmers prefer security in possession of land while the government wants it further that is the willingness of farmers to pledge their land in banks.