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Policy for Controlling the Conversion of Agricultural Land to Non-Agricultural Use: A Supply-Side and Demand-Side Analysis Arsianita Nur Fattah; Henni Zainal; Alifia Ainun Rizky; Andi Mahdiana Mardatillla
Pinisi Business Administration Review Volume 8 Nomor 2, September 2026
Publisher : Universitas Negeri Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26858/pbar.v8i2.82279

Abstract

The conversion of agricultural land to non-agricultural use is a policy problem shaped by the interaction of pressures on the supply and demand sides. This study aims to analyze the root causes of agricultural land conversion and to determine priority policy alternatives for controlling it. It employs a public policy analysis approach in two stages: problem structuring, which uses Dunn’s hierarchical method to identify the immediate causes, underlying causes, and root causes on both the supply and demand sides; and the Non-Dominated Alternatives Method (NDAM), which is used to select policy alternatives. Data were obtained through a documentation study of data from Statistics Indonesia (BPS), the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), and the Ministry of Agriculture, as well as regulations and scientific articles. The NDAM analysis used six policy evaluation criteria: effectiveness, efficiency, adequacy, equity, responsiveness, and appropriateness. The results show that land conversion is driven by weak economic incentives for farming, growing pressure from the demand for non-agricultural land, and suboptimal control of spatial land use. NDAM produced three non-dominated alternatives: strengthening economic incentives for farmers, strengthening spatial use control and licensing, and an integrated policy combining farmer incentives with spatial control. These findings underscore the need for a policy approach that integrates interventions on both the supply and demand sides.