Indonesian Political, Business & Finance News

Land Publication System in Indonesia

| | Source: BUSINESS-LAW.BINUS.AC.ID Translated from Indonesian | Legal

The land publication system essentially represents the state’s method of announcing to the public who holds rights over a particular plot of land, while also determining the extent to which the state guarantees the accuracy of that data. Land publication is not merely about how land is registered and then announced, but more importantly, how reliable and protected the data in the registration is.

In practice across various countries, positive and negative publication systems are recognised. The positive system provides full guarantees, so the data in the register is considered absolutely correct, as applied in countries like Germany and Australia. In contrast, the negative system does not provide absolute guarantees, so registered data can still be challenged if there is stronger contrary evidence, as known in the Netherlands. Thus, the land publication system adopted in a country actually reflects issues of legal certainty and justice. The positive publication system overly emphasises certainty because the data in the certificate is almost indisputable. This certainly provides security in transactions, but risks harming the party that is actually more entitled if there is an initial error. Conversely, the negative publication system allows significant room for challenges, considered theoretically fairer, but creates uncertainty because land ownership can continually be questioned.

In Indonesia, the adopted land publication system is a negative one tending towards positive, as regulated in Government Regulation No. 24 of 1997 on Land Registration. This can be understood more concretely through several provisions in it.

First, the “negative” characteristic is clearly seen in Article 32 paragraph (1), which states that the certificate is strong evidence regarding physical data and juridical data, as long as it matches the data in the survey letter and land book. The phrasing “strong evidence” indicates that the certificate is not absolute, so contrary proof is still possible in court. In other words, the state does not provide absolute guarantees over the accuracy of that data.

Second, the possibility to challenge or cancel the certificate is also implicitly open in this system, because if there is another party that can prove its rights, then the certificate can be annulled through a court decision. This confirms that land registration in Indonesia does not close off room for legal correction. Ultimately, this weakens legal certainty in the land sector. Meanwhile, land registration affairs are meant to provide legal certainty to rights holders.

Nevertheless, the characteristic of a positive system appears in Article 32 paragraph (2), which provides protection to the certificate holder who obtains the land in good faith and actually controls the land. This provision emphasises that if within five years since the issuance of the certificate no party submits a written objection to the certificate holder and the land office, or does not file a lawsuit in court, then other parties who feel they have rights can no longer demand the execution of those rights. This provision strengthens the position of the certificate so that in practice it approaches an absolute nature.

Through these two paragraphs in Article 32, it is clearly seen how Indonesian land law attempts to balance two interests. On one side, the possibility to challenge remains open for the sake of justice if there are errors or legal defects. On the other side, strong protection is given to good faith certificate holders to create legal certainty and stability in land relations. Thus, based on the provisions in Government Regulation No. 24 of 1997, particularly Article 32 paragraphs (1) and (2), it can be concluded that the land publication system in Indonesia is indeed not a pure positive system, but a negative one tending towards positive, because it contains elements of openness to be refuted as well as strengthening protection for legitimate rights holders.

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