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Beyond a Formal Legal Property System: Property Rights on Land, Land Apartheid and Development in Indonesia

Posted: 28 Aug 2006 Last revised: 29 Apr 2013

Lilis Mulyani

Indonesian Institute of Sciences

Date Written: August 27, 2006

Abstract

This paper tries to accommodate De Soto's theory on formal legal property system as a way to eradicate poverty in developing country, such as Indonesia. Informal system of property, where the poor are mainly involved in shall be use as potential way to help them out of poverty. This paper argues that there are many obstacles for the system to work. Landlessness and land apartheid are widespread and this is due to factors such as vague and weak Land Law, abuse of social function on land principle and inadequate and inefficient bureaucracy. The absent of adequate legal paradigm and ideological preference on the Indonesian Land Law is also the main problem. In the conclusion it show that the socio-political and legal conditions in Indonesia have not been prepared for the theory of using formal legal property system to decrease the poverty level in Indonesia.

Keywords: Indonesia, property, land law

JEL Classification: H82, Q24

Suggested Citation

Mulyani, Lilis, Beyond a Formal Legal Property System: Property Rights on Land, Land Apartheid and Development in Indonesia (August 27, 2006). Available at SSRN: https://ssrn.com/abstract=926636 or http://dx.doi.org/10.2139/ssrn.926636

Lilis Mulyani (Contact Author)

Indonesian Institute of Sciences ( email )

PMB LIPI Widya Graha Lt 6 Jl.
Jakarta
DKI Jakarta 12710
Indonesia
62-21-5701232 (Phone)
62-21-5701232 (Fax)

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