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

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.

Key takeaways

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  1. De Soto's theory highlights integrating informal property systems to alleviate poverty in Indonesia.
  2. Land apartheid and weak land laws contribute to widespread landlessness and inequality in Indonesia.
  3. The World Bank supports a formal legal property system but may reinforce existing inequalities.
  4. A strong, clean government is crucial for effective land administration and equitable distribution.
  5. Indonesia's complex legal property system requires broader reforms beyond mere formalization to achieve justice.

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