| Summary: | Application policy of Investment Act (Undang-Undang Penanaman Modal/UUPM)
Number 25 of 2007 about Capital investment can bring negative implication to fate of farmer.
UUPM hardly clearly gives amenity to investor to obtain farm and tends to give the big trust
to investor to build the economic of Indonesia. The amenitys that is given to investor can be
misused if there is not followed by readiness of the law structure with having enough ability
to implement the substance of UUPM causing can give the negative implication to fate of
farmer.
Until now, the implementation of vesting policy of HGU still has many harvesting
problem between entrepreneurs with public that occupying on the area around of HGU. The
application of policy that applying of vesting of HGU after implementing of UUPM has give
ever greater gain to entrepreneur because the duration of domination of extendable HGU at
the first time. The Government needs to take the normatif of rule that remain to the farmer
to gets justice and prosperity while investor still can inculcate the legal capital and has the
business in Indonesia. In this case, the law structure prepared to beginning of UUPM must
really brood in order not to invite abuse to vesting of HGU to investor. This thing is enabled by
HGU that can be transferred or transferred to other party according to PP Nomor 40 Tahun
1996, while UUPM only arrange the duration of vesting of HGU.
Visible capital investment act as indication that there is no motivation for economics
independence of public, the policy takers doesn�t believe the Indonesian farmer can build
plantation, agriculture and fishery or even is improved to become company. This act exactly
trusts in investor that is most accurate cluster in giving the huge of land, whereas Indonesian
farmer becomes cheap labour only. This is the main characteristic of colonial agrarian law
that reanimated on behalf of INVESTMENT. Our farmer is not really poor
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