Indonesia's coastline (approximately 81,000 kilometers) is one of the longest in the world, surrounding 17,508 islands large and small. In total, around 60 percent of Indonesia's population lives near coasts. As an archipelagic state, Indonesia could gain much by effectively utilizing its coastal and small island resources. This is what, in addition to other considerations, underlies the enactment of Law No. 27/2007 2007 on the management of coastal zones and small islands. One of the most crucial and controversial parts of the law is the introduction of a property rights system for coastal zones and small islands, namely the right to commercialize coastal zones (HPd), abbreviated as HP3. The owner of a HP3 would be able to utilize a designated area of the coastal zone. HP3 grants ownership of water columns (as well as small islands) in coastal zones. Theoretically, the...

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