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Land Certificates from PTSL Add Investment Value

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Jakarta – The Complete Systematic Land Registration Program (PTSL) continues to demonstrate a significant impact on increasing investment value and boosting local economic growth. From early 2025 to mid-July, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) reported that the program had achieved 95.9 percent of its national target of 5.1 million land parcels.

This achievement reflects consistent acceleration in land legalization across various regions. One of the most notable areas is Central Sulawesi. Out of a total target of 5,494 parcels, 4,797 parcels have been certified through PTSL.

Deputy Minister of Agrarian Affairs and Spatial Planning/Deputy Head of BPN (Wamen ATR/Waka BPN), Ossy Dermawan, praised this success as the result of active collaboration between the central government, local governments, and the community.

“A land certificate is not just proof of ownership, but a guarantee of legal certainty that can drive the local economy. This is the foundation of inclusive development,” he said.

The existence of legally recognized land certificates also has a direct impact on entrepreneurs, especially in the MSME sector. Land legalization allows owners to use their certificates as collateral for bank financing.

Beyond facilitating financing access, legal certainty over land also reduces the potential for agrarian conflicts, which have long been a primary obstacle to investment. Local governments can now easily map out potential development zones and promote them to investors, backed by clear land status.

Meanwhile, Minister of ATR/BPN, Nusron Wahid, explained that although this year’s PTSL target was reduced from 3 million to 1.5 million parcels, this adjustment was made to ensure efficiency and optimize work in more complex regions.

“We’re not just chasing numbers; we are also ensuring quality and process certainty. This year, we are targeting 1.4 million parcels to be completed under principles of accuracy and sustainability,” he explained.

Despite the high achievement rate, the PTSL program still faces challenges, particularly in areas involving customary lands, former transmigration settlements, and disaster-affected regions. Legalizing land in such areas requires more careful social approaches. Additionally, administrative fees such as land acquisition duty (BPHTB), boundary marking, and land measurement remain burdensome for low-income communities. In response, several local governments have started providing subsidies or tax exemptions for certain groups.

Going forward, the government aims for all land parcels in Indonesia to be registered and certified by the end of 2026 at the latest. PTSL is not merely a legalization program; it has become the foundation for inclusive and sustainable economic development, strengthening social resilience, and promoting grassroots welfare.

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