THE PRINCIPLE OF NOTARY PRUDENCE IN LAND SALE AND PURCHASE BINDING AGREEMENTS (PPJB): BUILDING LEGAL CERTAINTY, TRANSACTION TRUST, AND ECONOMIC EFFICIENCY IN THE INDONESIAN LAND SECTOR
Keywords:
economic efficiency, land transactions, legal certainty, notary authority, prudential principleAbstract
Land represents a valuable economic asset with a strategic role in supporting national development. In addition to fulfilling the social needs of the community, land has increasingly functioned as an instrument for investment and capital accumulation. The growing economic significance of land has led to increasingly complex patterns of land transactions, which in turn have heightened the possibility of legal disputes arising from such activities. One of the legal mechanisms commonly used in land transactions is the Sale and Purchase Binding Agreement (Perjanjian Pengikatan Jual Beli/PPJB), executed before a Notary as a preliminary agreement prior to the signing of the Sale and Purchase Deed (Akta Jual Beli/AJB). Nevertheless, various disputes demonstrate that insufficient adherence to the prudential principle by Notaries in drafting PPJBs may result in legal uncertainty, financial losses, declining trust among the parties, and higher transaction costs. This study aims to examine the urgency of reconstructing the authority of Notaries based on the prudential principle in the preparation of land-related PPJBs and to assess its implications for legal protection and economic efficiency. The research employs a normative legal method using statutory, conceptual, and case approaches. The findings indicate that the current legal framework governing Notarial authority does not expressly mandate the conduct of land due diligence before the execution of a PPJB. This regulatory gap creates opportunities for disputes and increases economic burdens borne by the parties. Therefore, reconstructing Notarial authority is essential through strengthening obligations to verify land data, integrating digital land administration systems, and reinforcing professional prudential standards to enhance legal certainty, protect the interests of the parties, and promote a secure, efficient, and sustainable land transaction environment.
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