Analysis of the Conversion Process and the Legal Certainty of Freehold Title Certificates for Former Customary Land in Ownership Disputes by Third Parties (A Case Study of Supreme Court Decision Number 1012 K/Pdt/2023)

Abstract

The issuance of Freehold Title Certificates (Sertipikat Hak Milik/SHM) for land is intended to provide legal certainty; however, in practice, ownership disputes frequently occur. The issue becomes crucial when involving the conversion of customary land titles (hak milik adat), which in practice has not fully guaranteed legal certainty regarding the history of ownership. This problematic is reflected in Supreme Court Decision No. 1012 K/Pdt/2023. The Supreme Court dismissed the cassation appeal from the heirs (certificate holders) on the grounds that they failed to prove a legal relationship with the original owner, whereas PT. MKP was able to provide evidence of a deed of relinquishment of rights and 20 years of physical possession. The results show, This decision erroneously re-imposes the burden of proving inheritance status on the SHM holder, undermines the negative publication system with a positive tendency, and fails to provide legal protection to the bona fide certificate holder.