The findings are significant because land management remains one of Indonesia’s most important policy issues. Land is closely connected to economic development, environmental sustainability, agrarian reform, and social justice. In many regions, unused or abandoned land has become a source of legal disputes, inefficient resource allocation, and social inequality.
South Sumatra is one of Indonesia’s major plantation and mining regions. Despite its large economic potential, many land concessions and licensed areas are reportedly underutilized or abandoned. The study highlights how this condition creates a contradiction between economic opportunity and ineffective land utilization.
According to the researchers, the problem is not limited to legal regulations. Institutional readiness, bureaucratic coordination, and government oversight play equally important roles in determining whether land policies can be implemented effectively.
Land Policy and Institutional Challenges
Indonesia introduced Government Regulation Number 20 of 2021 as the legal framework for managing abandoned land and abandoned areas. The regulation gives authorities responsibility for identifying, evaluating, controlling, and utilizing neglected land resources.
The research found that the Government of South Sumatra Province has formally implemented the required policy stages, including:
- Land inventory and identification
- Evaluation of suspected abandoned land
- Coordination with related agencies
- Monitoring and supervision of land use
However, implementation in the field remains far from optimal.
One of the largest obstacles is limited institutional capacity. The study reports that the number of government officials specifically assigned to supervise abandoned land remains inadequate compared to the size of the province and the number of land objects requiring monitoring.
The researchers also identified uneven technical expertise among government personnel, particularly in mapping, spatial analysis, and land dispute management. These limitations slow down the process of field verification and policy enforcement.
Budget constraints further complicate implementation. In several cases, land identification activities rely heavily on administrative reports rather than direct field inspections. As a result, discrepancies may emerge between official data and actual conditions on the ground.
Fragmented Bureaucracy Slows Decision-Making
Another major issue identified in the study is bureaucratic fragmentation between central and regional government institutions.
Although provincial authorities are responsible for coordination and supervision, the legal authority to officially determine abandoned land status remains under the central government. This layered structure often creates long administrative processes and delays decision-making.
The research also found inconsistencies in the implementation of standard operating procedures (SOPs). Different interpretations among government officials regarding abandoned land criteria and enforcement stages contribute to uneven policy implementation across regions.
Communication problems between agencies were identified as another factor weakening policy effectiveness. Data sharing and policy synchronization between institutions are still limited, despite the need for integrated land management systems.
The researchers emphasized that coordination failures can undermine even well-designed regulations. In the framework of public policy implementation theory developed by George C. Edwards III, communication and bureaucratic structure are essential components for successful policy execution.
Land Disputes Remain a Critical Barrier
The study also reveals that land disputes are among the most serious barriers to abandoned land management in South Sumatra.
Many areas identified as abandoned are involved in ongoing conflicts between landowners, local communities, companies, and third parties. These disputes create legal uncertainty and make government officials hesitant to take enforcement action.
Researchers found that compliance among land rights holders also varies significantly. Some permit holders respond to government warnings and recommendations, while others fail to demonstrate meaningful action regarding land use obligations. Weak and inconsistent sanctions reduce the effectiveness of the policy framework.
According to the study, successful land policy implementation requires more than formal regulation. It also depends on strong institutional capacity, adequate resources, effective coordination, and legal certainty.
“Policy success is determined not only by regulations, but also by the ability of implementing institutions to manage resources and bureaucratic structures effectively,” the researchers from STISIPOL Candradimuka explained in their analysis.
Implications for Government and Economic Development
The findings carry important implications for policymakers, businesses, and regional governments across Indonesia.
For government institutions, the research highlights the urgent need to strengthen human resources, improve technical expertise, and increase funding for land supervision activities. Better institutional coordination between local governments, land agencies, and central authorities is also necessary to reduce bureaucratic overlap.
For businesses and investors, clearer land governance systems could improve legal certainty and reduce conflicts surrounding land ownership and utilization. More effective land management may also increase productivity in sectors such as agriculture, plantations, mining, and infrastructure development.
The study additionally recommends stronger sanctions against permit holders who leave land abandoned, alongside improved mechanisms for resolving agrarian disputes.
Researchers argue that land management policies should not focus solely on administration. They should also address broader institutional reform and intergovernmental coordination to ensure long-term policy effectiveness.
Author Profiles
Deby Chintia Hestiriniah is a researcher and academic from STISIPOL Candradimuka in Palembang specializing in public policy and public administration.
Konar Zuber is an academic at STISIPOL Candradimuka whose research focuses on governance and bureaucratic systems.
Arif Rahman Hakim is a lecturer and researcher specializing in public policy implementation and agrarian governance.
Source
Hestiriniah, Deby Chintia; Zuber, Konar; Hakim, Arif Rahman. Institutional Capacity and Bureaucratic Structure in the Implementation of Land and Abandoned Areas Management Policy in South Sumatra Province. Asian Journal of Applied Business and Management (AJABM), Vol. 5 No. 2, 2026, pp. 463–472. DOI: https://doi.org/10.55927/ajabm.v5i2.29, URL: https://journalajabm.my.id/index.php/ajabm
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