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This paper discusses the importance of land rights in providing ways and means for the improvement and preservation of urban heritage cultural values in Yogyakarta. The use of comprehensive institutional approach considers actors' behavior within their informal institutions in the reconstruction of cultural heritage post earthquake. Discussion focuses on the way landowners may constrains or enabling the reconstruction process. Interviews conducted with selected landowners indicated the way in which land rights impede the urban cultural heritage reconstruction. In the end, it shows how institutional economics analysis explains the role of land rights in the improvement of cultural heritage in Yogyakarta, Indonesia. [ABSTRACT FROM AUTHOR]