The Effect of Bribery Practices on Legal Security and Investor Protection in the Property Sector

Abstract

The Meikarta project is one of the largest and most ambitious property investments in Indonesia, but it has ultimately turned into a source of legal problems and financial losses due to corrupt practices that have occurred since the beginning of the licensing process. This project, initiated by PT Lippo Cikarang Tbk, was initially promoted as a modern independent city that would become an icon of the development of the Cikarang area but instead faced various problems ranging from permit violations, spatial planning inconsistencies, to bribery of local officials. As a result, development has stalled, consumers have not received the promised units, and public trust in developers has plummeted. This study examines how corrupt practices, especially bribery in the licensing process, have a direct impact on the failure of property investment. Through a normative legal approach, this study highlights the weak supervision and law enforcement that allow violations to occur repeatedly. The results of the analysis show that bribery is not just a violation of ethics or law, but is the root of the project's cessation, damage to public trust, and the emergence of legal uncertainty that is detrimental to many parties.
Keywords: Meikarta, Corruption, Bribery, Licensing, Losses.