Expatriates in Indonesia have rightful concerns regarding land use and ownership rights for business purposes. You will find below all titles you may find in Indonesia:
Right Of Ownership (Sertifikat Hak Milik)
Also known as Freehold Title, the Right of Ownership allows you to use the land for any purposes and there is no expiration for the land you own. However, only for Indonesian individuals and some specific Indonesian institutions can acquire this ownership. This is the strongest title in Indonesia.
Right To Use (Hak Pakai)
This is the right to use and/or harvest from land directly owned by the state (rendered by authorised official government deed), or private land (by agreement with the owner of the land). This may be applied to land for use as a building site or for agricultural purposes. Indonesian citizens , Indonesian companies, foreign offices and foreign representative offices can acquired this title and the transfer of this right must have local government authorisation.
Right To Build (Hak Guna Bangunan)
The right to build and owned a structure on land owned by others.
Those who may obtain right-to-build deeds are Indonesian citizens and legal entities (such as a PT/limited liability company) established under Indonesian law and domiciled in Indonesia, either for 100 percent foreign-owned, joint venture, or 100 percent Indonesian-owned companies.
Foreign investors who desire to establish their business in Indonesia can have their building/office under a “rights to build” deed for a stipulated period.
Right Of Lease (Hak Sewa)
A person or Indonesian legal entity has rights to lease land. This right belongs to Indonesian citizens, foreigners, and legal entities (such as PT/limited liability companies) established under Indonesian law and domiciled in Indonesia or the representative office from a foreign legal entity.
This non-exhaustive list of titles is shown above for information only and then consequently do not constitute any legal advice.
Please consult with an experienced Real Estate Legal Service and Advisor that are experts in Indonesian property ownership before making any property purchases or signing any property agreements to understand the legal status of the ownership.
If you have any question about any of those title and/or which of those would suit your profile, we will be happy to assist. Please do not hesitate to contact us for further details.
