Reformulating a Due Diligence-Based Model for Land Sale and Purchase Agreementsto Prevent Disputes and Ensure Legal Certainty

Abstrak

Land Sale and Purchase Binding Agreements (Perjanjian Pengikatan Jual Beli (PPJB)) have become a prevalent legal instrument in Indonesian land transactions. However, the frequent occurrence of disputes following the execution of PPJBs suggests that the current binding mechanism does not fully guarantee legal certainty or protection for the parties. These disputes often arise from ambiguous land title status, deficiencies in the legal authority of the parties, discrepancies between physical and juridical land data, and insufficient verification processes prior to transactions. This study analyzes the regulation and practice of land sale and purchase binding agreements under Indonesian positive law, assesses the relevance of the due diligence principle as a preventive legal protection mechanism, and develops a due diligence-based model to enhance legal certainty in land transactions. The research utilizes a normative legal research method, incorporating statutory, conceptual, and case approaches. Primary legal materials, including legislation and judicial decisions, are examined alongside secondary sources such as legal doctrines, scholarly books, and reputable academic journals. The findings indicate that PPJB practices predominantly emphasize formal contractual elements and lack comprehensive legal examination mechanisms. The due diligence principle is shown to be highly relevant as a preventive legal protection tool through legal, administrative, physical, and social assessments conducted prior to transactions. Accordingly, this study introduces the Land Transaction Due Diligence Model (LTDDM), which integrates due diligence into the pre-contractual phase to achieve substantive legal certainty and mitigate the risk of land disputes.