Indonesian Agrarian Reform as a Global Social Justice Model Amidst Transnational Capital Expansion -By Nanda Kartika Sari

Amidst the increasingly aggressive tide of global capitalism and intensifying investment competition, many developing nations face a classic dilemma: opening themselves to international capital or maintaining sovereignty over their natural resources. Indonesia offers a third way. Through agrarian reform rooted in the mandate of the 1945 Constitution, specifically Article 33, the state asserts that land, water, and natural resources are not merely market commodities, but constitutional instruments to achieve public prosperity. This is where Indonesia’s agrarian reform finds its global relevance it is not a protectionist policy, but rather an ethical foundation for sustainable development.

Land governance issues have garnered global attention since the 2008 food and energy crisis. A surge in commodity prices triggered a wave of large-scale land acquisitions by transnational corporations. The World Bank noted an increase in land-based investments in Asia and Africa, while the Food and Agriculture Organization (FAO) responded by promoting fair and transparent tenure governance principles. This phenomenon reveals one reality: without strong regulation, globalization can deepen agrarian inequality.

Indonesia has chosen not to be swept away by this trend. Through Presidential Regulation Number 62 of 2023, the government is accelerating asset and access restructuring within the framework of agrarian reform. This policy does not stop at land redistribution; it ensures that beneficiaries gain access to capital, training, and integration into national supply chains. This approach demonstrates that agrarian reform is not just about land distribution, but a transformation of the rural economic structure.

Simultaneously, Law Number 11 of 2020 was introduced to simplify regulations and strengthen Indonesia’s investment competitiveness. While criticism has emerged regarding potential centralization of authority and environmental protection, within a comprehensive legal-political framework, agrarian reform and investment climate reform can be viewed as two sides of a national strategy creating growth without sacrificing equity.

In the international landscape, Environmental, Social, and Governance (ESG) standards increasingly determine a country’s reputation. The European Union, through supply chain due diligence policies and deforestation-free regulations, demands transparency and respect for local community rights. Countries failing to meet these standards risk being sidelined from the global market. At this juncture, Indonesia’s agrarian reform becomes a competitive advantage. The legality of land ownership, digitalization of certification, and recognition of indigenous rights strengthen Indonesia’s credibility in international trade.

Agrarian reform holds a strategic dimension in the context of national resilience. Geopolitical uncertainties ranging from regional conflicts to global supply chain disruptions prove that food self-sufficiency and social stability are the primary foundations of state sovereignty. With fairer land distribution, agricultural productivity increases, access to financing opens up, and local economies grow more resilient. This stability ultimately creates a healthier and more sustainable investment climate.

The history of East Asian development reinforces this argument. Agrarian reforms in Japan and South Korea in the mid-20th century became the foundation for the birth of a productive middle class and rapid industrialization. Indonesia has a historical opportunity to replicate that success with a contextual approach blending the principle of gotong royong (mutual cooperation), recognition of indigenous rights, and transparency-based digital governance.

The digitalization of land administration through the integration of national spatial data also minimizes opportunities for corruption and overlapping land conflicts. In the digital economy era, data certainty is a strategic strength. Global investors seek not only fiscal incentives but also legal certainty and social stability. Consistent agrarian reform directly addresses these needs.

The challenges are certainly significant. Historical disputes, resistance from economic elites, and bureaucratic complexities serve as real tests. However, these challenges must not be used as excuses to retreat. Instead, they demand strengthened oversight, public participation, and long-term political commitment. Indonesia must be bold enough to assert that investments which destroy social structures are not investments worth maintaining.

In global forums on sustainable development and social justice, Indonesia has the opportunity to become a normative reference. Agrarian reform can be positioned as a concrete contribution to the Sustainable Development Goals (SDGs) agenda, particularly in poverty alleviation, reducing inequality, and protecting terrestrial ecosystems. The world needs examples of developing nations capable of formulating policies that do not fully submit to market logic, yet remain adaptive to global economic dynamics.

Indonesia’s agrarian reform today is more than just a land redistribution policy. It is a declaration of sovereignty amidst transnational capitalism. It is proof that a constitution can serve as a moral compass in the vortex of globalization. If consistency, integrity, and political courage are maintained, Indonesia will not only strengthen its own economic foundation but also elevate its name on the international stage as a nation that successfully integrates investment, sustainability, and social justice into a single, dignified vision of development.

Nanda Kartika Sari, University of 17 Agustus 1945 Surabaya