For over twenty years, the growth of the forestry and plantation industries in Indonesia has resulted in heightened disputes concerning land usage and natural resources. This has brought awareness to communities regarding the societal, financial, and ecological repercussions of such conflicts. It is imperative for land-based enterprises to incorporate conflict resolution strategies for both local disputes and those that may necessitate legal intervention.
Agrarian Reform, a reform priority since 1998, aims to address land tenure inequality and environmental degradation, and emphasizes that agrarian conflict resolution must be comprehensive and fair, as stipulated in TAP MPR-RI No. IX/MPR RI/2001.
A 2014 World Bank report revealed that nearly 25 million hectares of forest in Indonesia are in conflict due to competing legal claims, covering nearly 20,000 villages. A 2017 study on conflict in the palm oil sector showed the direct costs of conflict to be USD 70,000 to USD 2,500,000 per site, or up to 132% of annual investment costs per hectare. These conflicts also accelerate deforestation and create tenure uncertainty, hampering Indonesia’s greenhouse gas emissions reduction targets under the Paris climate agreement.
In 2016, President Joko Widodo adopted agrarian reform in Presidential Regulation No. 45/2016 as part of the 2017 Government Work Plan, covering regulatory strengthening, legal certainty, and community empowerment. Perpres No. 86/2018 emphasizes that agrarian reform is carried out through planning and implementation by the central and regional governments to improve global economic competitiveness.
In this context, the Chamber of Commerce and Industry (KADIN) initiated the Conflict Resolution Unit (CRU) in 2015 to reduce conflict risks and improve the land-based investment climate.
CRU promotes mediation as an effective approach to addressing agrarian and natural resource conflicts, provides credible information, sponsors studies, supports policy reforms, and develops institutional models for conflict resolution.
From 2016 to 2020, CRU handled 56 conflict cases in various locations, resolving 23 cases with peaceful agreements, involving village communities, farmer organizations, indigenous peoples, and companies. CRU is committed to resolving ongoing agrarian conflicts and ensuring sustainable land management
On February 7, 2024 CRU transformed from a KADIN project into a membership-based association, CRU Indonesia.
CRU Indonesia’s membership consists of individuals who have diverse expertise related to CRU Indonesia’s basic objective, which is to promote conflict risk reduction as a fundamental aspect of conflict-sensitive strategies and approaches, in an effort to realize inclusive, equitable, and sustainable development.
The founders of CRU Indonesia are automatically appointed as the Board of Trustees for the organization. The Board of Trustees consists of Shinta W. Kamdani, Suraya A Afiff, Kamala Chandrakirana, Ichsan Malik, Tony Budidjaja, and Rezal Kusumaatmadja.
In the first General Meeting of Members on February 7, 2024, it was unanimously agreed to form the CRU Indonesia Governing Board, consisting of Arief Wicaksono (Chair), Ilya Moeliono (Secretary), and Paramita Iswari (Treasurer).
In addition, the General Meeting of Members has also formally approved the Strategic Plan for 2024-2028, which outlining specific strategic objectives, recognizes the importance of adapting to external conditions, especially in relation to young people as the future generation.