REVOLUTIONIZING THE INDONESIAN PROPERTY LAW WITH BLOCKCHAIN TECHNOLOGY

Abstract

Amidst the arguments of legal intervention in the aspects of society, most scholars, either economists or legal experts, would agree that property law is one of the few things to be sustained regardless the circumstances. The certainty offered by the property law allow society to allocate resources to the more welfare-creating activities.  For long, Indonesian property law relies on the classic property law in the framework of our civil code ruling, namely the Burgerlijk Wetboek or Kitab Undang-Undang Hukum Perdata. Movable object relates its ownership with the possessor of the object, which is known as bezit, while immovable object or a special movable object ownership is attached to a certificate to evidence one’s ownership. This has been recognized by law as the most efficient procedure to enforce property law. However, we have to note that these set of rules were in nature defect, yet is used due to our limitation of technology. Bezit, for example, might allow a legal notion that one possessing it as a legal owner, while in reality, he might illicitly obtain the objects. Certificate-based ownership sounds firm, yet the legal procedure to issue or transfer a certificate is more complicated than that. This paper identifies the new technology development, the blockchain technology, as one solution of the complex procedures. Blockchain allows a safe and transparent transaction with less intervention of the government, reducing the high workload from the bureaucratic procedures. The derivative product, the Non-Fungible Token, allows a creation of digital certificate to be created and in its early development, has shown a strong possibility of future use in the property law regime.