The Customary and National Perspectives on Agricultural Land Pawning Practices in Indonesia
Anwar Borahima (a), Fitri Pratiwi Rasyid (a), Farida Patittingi (a*)

a) Civil Law Department, Hasanuddin University, Indonesia
*patittingi[at]yahoo.co.id

Abstract

Agricultural land pawning is one way that people in Indonesia often adopt to get fresh funds swiftly. According to the Article 7 PERPU No. 56 of 1960 concerning the Application of Agricultural Land Areas, the land-pawning system in Indonesia is limited to 7 years, and the repayment is defined from the harvest during that period. In contrast to the customary law, the pawning holder or creditor and the landowner as the debtor have unrestricted mortgage duration, furthermore, the contract may continue until full repayment. In fact, the Indonesians favor to dissuade written regulations as stipulated in the national agrarian law and are accustomed to applying customary law to agricultural land-pawning. This inconsistent practice may have the potential to disregard the spirit of written regulations. Therefore, a contemplate study about the perspectives of customary and national values for land-pawning has been conducted. Appropriately, the enforced regulations suited to increase the realization of legal certainty for the community, thus the concept of implementing an ideally statutory regulation is feasibly run by the entire community.

Keywords: Agricultural land pawning- Agrarian law- Customary law

Topic: Trade and Business