THE AGRO-FINANCE GOVERNANCE OF LAND PAWNING INSTITUTIONALISM IN AN ASIAN EMERGING ECONOMY

Abstract

This study investigates the role of land pawn institutionalism in Indonesia in the context of regulation and governance. The theoretical framework referred to in this study is the institutionalization of land pawning from Demachi (2021), which explicitly observes the relationship of the land pawn governance framework to the economy. Furthermore, in the context of agro finance, another theory used is legal infrastructure (Pellandini-Simányi & Vargha, 2021), which analyzes the foundational role of law and regulation to function as social infrastructure to trigger expected economic conditions. The research was conducted using the normative and juridical approach with qualitative design. The findings of this study highlight that governance and regulation in the land system is a major tool in the social system. The land pawning is expected to accommodate the needs and interests of stakeholders and provide equitable services for the community to create legal certainty and social order. The findings highlight the importance of governance of land pawning to advance the role of law as economic and social infrastructure, especially in the agroeconomic field.