Land Certificates from PTSL Add Value to Investment in Indonesia
Jakarta – The Complete Systematic Land Registration (PTSL) program continues to demonstrate a significant impact on increasing investment value and local economic growth. From early 2025 to mid-July, the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) recorded that the program’s implementation had reached 95.9 percent of the national target of 5.1 million land plots.
This achievement demonstrates the consistent acceleration of land legalization across various regions. One of the areas with the most striking progress is Central Sulawesi. Of the total target of 5,494 plots, 4,797 have been certified through PTSL.
The Deputy Minister of Agrarian Affairs and Spatial Planning/Deputy Head of the National Land Agency (Wamen ATR/Waka BPN), Ossy Dermawan, praised this success as a manifestation of active collaboration between the central government, regional governments, and the community.
“A land certificate is not just proof of ownership, but also a guarantee of legal certainty that can stimulate the local economy. This is the foundation of inclusive development,” he said.
The existence of a valid land certificate also has a direct impact on businesses, particularly in the MSME sector. Land legality allows owners to use the certificate as collateral to obtain financing from banks.
In addition to accessing financing, legal certainty over land also reduces the potential for agrarian conflicts, which have long been a major obstacle to investment. Local governments can now easily map potential areas and promote them to investors with clear land status.
Meanwhile, the Minister of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Nusron Wahid, explained that although the PTSL target for this year was lowered from 3 million to 1.5 million plots, this adjustment was made for efficiency and optimization in more complex areas.
“We are not just chasing numbers, but also ensuring the quality and certainty of the process. This year, we are targeting 1.4 million plots to be completed with accurate and sustainable principles,” he explained.
Despite its significant achievements, the PTSL program still faces challenges, particularly in areas with customary land status, former transmigration areas, and disaster-affected areas. The legalization process in these areas requires a more careful social approach. Furthermore, administrative costs, such as land acquisition and land clearing (BPHTB), stake installation, and land boundary measurement, remain a burden for low-income communities. In response, various local governments have begun implementing cost subsidies or tax exemptions for certain groups.
Going forward, the government aims to have all land in Indonesia registered and certified by the end of 2026. PTSL is not only a legalization program, but also a foundation for inclusive and sustainable economic development, strengthening social resilience, and promoting community welfare from the grassroots level.
