Indonesia’s land registration program has emerged as a powerful economic engine, generating over Rp1,021 trillion in value between October 2024 and October 2025. Far beyond administrative formalities, land certification is unlocking access to credit, increasing asset value, and boosting state revenue. As the country accelerates toward complete systematic land registration, the program is reshaping the foundations of inclusive economic growth.
Key Facts & Background
- Total economic value generated (Oct 2024–Oct 2025): Rp1,021.95 trillion
- Land parcels registered: 4,002,281
- Certified parcels: 2,687,686
- Breakdown of economic contributions:
- Mortgage-backed loans (Hak Tanggungan): Rp980.5 trillion
- Land and building acquisition tax (BPHTB): Rp25.9 trillion
- Non-tax state revenue (PNBP): Rp3.15 trillion
- Income tax (PPh): Rp12.4 trillion
- Cumulative national land registration status:
- Total registered parcels: 123.3 million
- Certified parcels: 97 million
- Program goal: Achieve full coverage under Pendaftaran Tanah Sistematis Lengkap (PTSL)
- Policy objective: Strengthen legal certainty, improve access to capital, and promote equitable asset ownership
- Statement by Minister Nusron Wahid: Land registration is a cornerstone of economic empowerment and agrarian reform.
Strategic Insights
Indonesia’s land registration initiative is redefining the role of agrarian policy in national development. By formalizing ownership and issuing certificates, the government is not only providing legal certainty but also catalyzing economic activity. The Rp1,021 trillion in value generated within a single year illustrates how land documentation translates into tangible financial leverage—enabling citizens to secure loans, invest in businesses, and participate more fully in the formal economy.
The dominance of mortgage-backed loans (Hak Tanggungan) in the economic contribution breakdown underscores the transformative power of land as collateral. With nearly Rp980.5 trillion mobilized through certified land assets, the program is unlocking dormant capital and channeling it into productive use. This has direct implications for financial inclusion, especially in rural and peri-urban areas where access to formal credit has historically been limited.
Moreover, the fiscal impact is substantial. Taxes and non-tax revenues from land transactions—BPHTB, PNBP, and PPh—collectively contribute tens of trillions to the state budget. This reinforces the dual role of land registration as both a developmental and fiscal instrument. As coverage expands, these revenues are likely to grow, providing a stable source of funding for infrastructure, social programs, and public services.
The progress toward PTSL reflects a broader commitment to asset equity and agrarian reform. With 123.3 million parcels registered and 97 million certified, Indonesia is approaching universal land documentation—a milestone that few developing countries have achieved. This not only reduces land disputes and tenure insecurity but also lays the groundwork for spatial planning, environmental stewardship, and sustainable urbanization.
From a policy perspective, the success of the land registration program highlights the importance of inter-agency coordination, digital innovation, and community engagement. Streamlined processes, mobile registration units, and integrated data systems have accelerated implementation while maintaining accuracy and transparency. These operational lessons can inform other large-scale public service initiatives.