Regulating the Space Above Land in Indonesia: Toward a Business Law-Based Framework for Legal Certainty and Vertical Development

Nabbilah Amir; Hadi Subhan; Urip Santoso; Sri Winarsih; Ghansam Anand

doi:10.30996/jhbbc.v9i1.132400

Authors

Nabbilah Amir Universitas Airlangga, Indonesia
Hadi Subhan Universitas Airlangga, Indonesia
Urip Santoso Universitas Airlangga, Indonesia
Sri Winarsih Universitas Airlangga, Indonesia
Ghansam Anand Universitas Airlangga, Indonesia

DOI:

https://doi.org/10.30996/jhbbc.v9i1.132400

Keywords:

space above land, legal certainty, spatial, license

Abstract

This article critically examines the fragmented legal regulation of airspace above land in Indonesia, emphasizing its incompatibility with the Basic Agrarian Law. Despite the increasing demand for vertical urban development, Indonesian statutory instruments governing spatial use, buildings, and land rights remain conceptually and normatively disconnected, resulting in significant legal uncertainty. Employing a doctrinal legal research method, this study analyzes philosophical, dogmatic, and normative dimensions of airspace regulation to identify inconsistencies that undermine the coherence of the land law system. From a business law perspective, the absence of clearly defined, transferable, and registrable rights over airspace poses substantial obstacles to commercial transactions, investment security, and financing in the real estate sector. Developers and investors face heightened legal risk due to the lack of a distinct legal status for airspace as an object of rights. To address these challenges, the article undertakes a comparative analysis of Singapore and Japan, jurisdictions that recognize airspace as a separate legal object subject to specific regulatory and licensing regimes. Drawing from these comparative insights, the article proposes the adoption of an airspace licensing regime in Indonesia. Such reform would harmonize airspace regulation with the Basic Agrarian Law, enhance legal certainty, support vertical urban expansion, and create a more investment-friendly framework for Indonesia’s rapidly growing property and infrastructure sectors.

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