Customary Communitarianism Versus Commercialism: Dispute Resolution on Balinese Customary Land
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This study aims to analyzes the legal status of shophouse buildings on Village Courtyard Land (Tanah Pekarangan Desa/PKD land) as objects of sale and purchase, and examines the most effective dispute resolution mechanism for disputes arising from underhanded debt agreements in Tegallalang Customary Village, Gianyar Regency, Bali. Indonesia, as a rule-of-law state, guarantees legal certainty over property rights, including rights over land and buildings. Legal complexity arises when transactions involve shophouse buildings on PKD not yet separated from their parent certificate. PKD land constitutes communal customary land (druwen desa adat) governed by Balinese customary law (awig-awig) and prohibited from free commercial transactions under Minister of Home Affairs Regulation Number 4 of 2007. An empirical legal research approach was employed through in-depth interviews, field observation, and legal document analysis. Findings indicate that shophouse buildings on PKD land constitute private property of the occupying krama desa, horizontally separated from the communal land, rendering transactions valid only to the extent of the building's physical value and right of use. Every transfer requires customary village approval through the paruman mechanism under Awig-awig Pawos 28 paragraph (5). Disputes from underhanded agreements contain defects of consent (wilsgebreken) through abuse of circumstances (misbruik van omstandigheden), making them subject to cancellation (vernietigbaar). Mediation through Kertha Desa applying parasparos and restorative justice principles is the preferred resolution, with District Court litigation as a last resort. This study fills the legal gap (rechtsvacuum) on commercial building transactions over communal customary land in Bali through an integrated customary and civil law framework.
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