Indonesian Property Law in Global Competition

Abstract

Investment in Indonesia is a necessity, in the field of direct investment property by foreigners experiencing obstacles when dealing with the land legal system in Indonesia. Property in this case includes land and buildings or houses attached to one another, on the other hand there are restrictions on the purchase of property for foreigners, where they can only purchase Usage Right of land that has limited period of time and the Building Rights on that, which also is limited time, but foreigners unwillingly to buy property above the Usage Rights. The situation is a result of the unequal treatment between Indonesian and foreign citizens with the intention of protecting the rights of citizens. In the Land Law System of Indonesia, the government regulates land use, ownership, and land transaction through the right to control state by the government. This paper aims to avoid the practice of legal smuggling that has happened so far, and at the same time open up opportunities for foreigners to purchase property in Indonesia legally, which has an impact on increasing the passion for property investment in Indonesia. The research method used is empirical normative, which refers to several cases those are the object of research with a case study approach, a conceptual approach, and a statutory approach. Out of the box thinking is needed from common sense practices that have been carried out by the government in exercising the right to control state.