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Legal Land Ownership.

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HAK MILIK (FREEHOLD)

Definition
Right to Property/ Posession
Freehold for Indonesian citizen

Governing Law
The Law of the Republic of Indonesia, Act No. 5 of 1960  Concerning Basic Regulations on Agrarian Principles Part- Article 20 and 21

HAK SEWA (LEASEHOLD)

Definition

  • Right to Lease/Rent
  • Leasehold for Indonesian or foreign citizen, Indonesian  company
  • For business or residential purpose

Hak Milik certificate is not changed; instead, this comprises a  lease from the original land owner to the lessor

Governing Law

The Law of the Republic of Indonesia, Act No. 5 of 1980  Concerning Basic Regulations on Agrarian Principles Article 44

HAK GUNA BANGUNAN (RIGHT TO USE)

Definition

  • Rights to build
  • Indonesian citizen of company or Foreign owned company in Indonesia (PMA) right to possess land for up to 80 years
  • Indonesian citizen or company or Foreign owned company in Indonesia (PMA) holds the right to hold, develop, lease or sell
  • Rights to usage
  • Leasehold for Indonesian or foreign citizen
  • For residential purpose
  • Working permit for foreign citizen (KITAS OR KITAP) required
  • Hak Milik certificate is changed to Hak Pakai certificate

 

Governing Law

The Law of the Republic of Indonesia, Act No. 5 of 1960

Concerning Basic Regulations on Agrarian Principles Article 36

The Law of the Republic of Indonesia, No. 40 of 1996 Concern-  ing Representatives, Building Rights to Land

Part 4 – Article 25

Minister of Agrarian and Spatial Regulation/ Head of the Na-  tional Land Agency (BPN) of the Republic of Indonesia

No.29 of 2016 Concerning Procedures for Granting, Disposal,  or Transfer of Right to Residential or Residential Ownership by  Foreigners domiciled in Indonesia

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