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Real Property Law
An efficient and fair system governing the registration, use, mortgage, and sale of real property is a critical enabler of economic growth. It allows individuals, farmers, and enterprises to invest in activities that concern land. It eases the burdens of ownership, use, collateralization, and sale of land and buildings. Good property law is particularly critical in transition-economy countries because it enables entrepreneurs of all stripes to freely acquire land in order to produce food, goods, and services in an environment that guarantees secure ownership and allows for long-term planning. It also accommodates economically beneficial changes in land use, such as the replacement of a dormant factory with a new one, within environmentally sensitive guidelines. A good property law must also be accompanied by an objective, standardized titling system.
The serious deficiencies of Indonesia’s real property system particularly affect the poor and middle class. The complicated and myriad overlays of state intervention and government agency involvement compound the problems that they are meant to solve. As a result, foreign and domestic investment suffers, and many poor Indonesians cannot actualize or exploit their customary property rights.
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