Legal Land Ownership.
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