Indonesian Political, Business & Finance News

5 Signs of Problematic Land to Watch Out For Before a Transaction

| | Source: KOMPAS Translated from Indonesian | Property
5 Signs of Problematic Land to Watch Out For Before a Transaction
Image: KOMPAS

JAKARTA, KOMPAS.com - Buying land is one of the favoured forms of investment because its value tends to increase over time. However, behind this potential profit, there are risks that need to be heeded, particularly regarding the status and legality of the land. “The public must be aware that legal certainty is recorded, not just remembered,” stated the Head of the Public Relations and Protocol Bureau of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency, Shamy Ardian, as quoted by Kompas.com on Tuesday (24/3/2026). Here are several signs that need to be noted before deciding to buy land. Problematic land generally has incomplete or mismatched ownership documents. For example, it might only consist of a girik without clear history, or a certificate still in the name of another party without a name transfer process. One of the most common signs is land that is under dispute, whether between individuals, families, or with other parties. Usually, there are multiple ownership claims or unresolved conflict histories. Land located in a zone that does not match its intended use, such as green areas, public facilities, or regions planned for government projects, has the potential to cause problems in the future. Land without legal road access or reliant on another party’s land can trigger conflicts. Access without a clear legal basis risks leading to usage disputes. A price far below market value should raise suspicion. This condition often indicates underlying issues, whether in terms of legality, disputes, or functional limitations of the land. By understanding these signs, the risk of buying problematic land can be minimised, making the investment safer.

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