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Special Page: Non-Indonesian Citizen to Land

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Land Titles and Ownerships: Hak atas Tanah dan Pemilikan Tanah
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Land Titles for Non-Indonesian Citizen:

As we are aware, there are six kinds of land titles plus one mortgage in Indonesia:
1. the right of ownership (Hak Milik)
2. the right of Culture or Plantation Purposes: is the right of use of cultivation (Hak Guna Usaha)
3. the right of Structure or Building Purposes: is the right of built and use of structures (Hak Guna Bangunan)
4. the right of Employ: is the right of use (Hak Pakai)
5. the right of Management (Hak Pengelolaan)
6. the right of Strata Title Ownership (Hak Milik atas Satuan Rumah Susun)
7. the right of Encumbrance: Mortgages (Hak Tanggunan)

Among those land titles, only the right of Employ (Hak Pakai) could be owned by Non-Indonesian Citizens.

Hak pakai is the right to use and or to harvest the land. The duration of this title is twenty five years and it could be extended as many as twenty years. After those all durations have been expired, the owner is entitled to reextend the title.

Hak Pakai is transferable and inheritable, and upon Hak Pakai, the Right of Encumbrance (Mortgages) is also acceptable.
The main difference between Hak Milik (sorts of Freehold) and Hak Pakai (sorts of Leasehold) might be in the duration of the title, where Hak Milik has no limit in duration.

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Strata Title:

is a real property ownership in which the purchaser of each unit of an apartment or condominium building acquires full title to the unit an an undivided interest in the common elements (i.e. the land, roof, elevator, etc.)

Unfortunately, today's regulation has not been allowed Non-Indonesian Citizens to have an apartment or condominium unit with a land ownership based, simply because there is no single apartment or condomonium has been built upon Hak Pakai, today. They are usually built upon Hak Guna Bangunan, Hak Milik, and Hak Pengelolaan.

A Non-Indonesian Citizen is entitled as a tenant or a leassee of an apartment or condominium unit.

There has been an ongoing political will from the government to begin to review this policy in order to develop a plesant climate for the foreign investors in Indonesia.

Main legal sources for Hak Pakai:
1. Article 41, 42 and 43 Basic Agrarian Law (Act No. 5 Year 1960)
Act No. 4 Year 1996 concerning Mortgage
Government Regulation No. 40 Year 1996 concerning Hak Guna Usaha, Hak Guna Bangunan, and Hak Pakai upon Land

More info? Please do not hesitate to drop us a line!