Ika Krismantari, Jakarta – Some people have given up on the dream of owning land in Jakarta due to financial constraints, but many more pursue the dream through land brokering services, with unexpectedly tragic results.

Land brokers promise to help find affordable property as well as offer the additional service of processing the necessary land documentation with reduced red tape.

But the public may have to be careful with these services as not all brokers harbor good intentions.

Unlike official land and property agents, these middlemen work through word of mouth, selling plots of land at cheap prices by claiming that the land belongs to locals, whereas the ownership of the land is actually under dispute or the land has been sold to other parties.

Jakarta's nightmarish land certification system has made brokering common in the city, with some people taking advantage of loopholes to dupe buyers, leaving them with no money and no land.

The National Land Agency (BPN) claims that almost 31 percent of the land in Greater Jakarta was not registered, giving rise to thousands of land disputes.

Sutrisno almost fell victim to a land broker when he found out that ownership of the 170-square-meter plot of land he bought two years ago in Cinangka, Depok, was actually under dispute. "People came to my house claiming to be the owners of the land," he said.

Sutrisno, who works as caterer, was told that his land was located in an area whose ownership had been under dispute for decades. Three companies claim rights to the land.

Sutrisno said he became worried and realized that he had spent Rp 200 million (US$22,400) – years of savings – to buy the land.

"I asked the broker to clear up the problem. Fortunately, he did by convincing other claimants that my land was not part of the disputed area," Sutrisno said, showing a statement from local officials and companies acknowledging his ownership of the plot.

Many others, however, have not been as fortunate. Onny Hendryanto has not received any certificate from her broker despite having already paid Rp 54 million for a plot of land in Pulo Gebang, East Jakarta, in 2005.

"The BPN said they couldn't issue the certificate because the land was already registered under someone else's name," he said. His broker reportedly sold the land to different parties and forged documents with the help of relevant officials.

The director for Rapid Agrarian Conflict Appraisal, Nur Amalia, said these crimes were not the work of a single con man, as the middlemen were usually assisted by insiders. "They need to process the papers, which cannot be done without the approval of local officials," she said.

Munawar, a middleman operating in Cinangka, confirmed this. He said he used to work as a clerk in a subdistrict office and maintained good connections and networks in the area to assist in his job. "It only took two days to get all the documents done," Munawar said.

He declined to say how much he earned from his service, but told The Jakarta Post that he could land multi-billion rupiah transactions.

Tips to avoid being conned in land deals

1. Buy land directly from the owners.
2. Check the authenticity of land certificates with local officials and with the National Land Agency (BPN).
3. Use official land brokers.
4. Don't be tempted by cheap prices. To determine the real value of the land, check the official market value of the land at the local tax office.