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Property Ownership Structures in Indonesia

Foreigners wishing to buy / purchase property in Bali Indonesia, whether for personal use or commercial purposes should be aware that the Indonesian Real Estate regulations and property ownership structures might differ from the legal conventions that apply in their home country

Indonesia has stringent requirements in regards to acquiring property and a set of ownership titles for both locals and foreigners, which makes ownership possible for anyone.

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Exotic PROPERTY LAND IN Tabanan Selemadeg BALI FOR SALE TJTB354

LAND IN Tabanan BALI FOR SALE TJTB354 Featuring Exotic Ricefields view this Freehold 10,000 m2 PROPERTY FOR SALE IN TABANAN BALI
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2,000 m2 LAND FOR SALE IN TABANAN BALI TJTB356

2,000 m2 LAND FOR SALE IN TABANAN BALI TJTB356

LAND FOR SALE IN TABANAN BALI   Featuring Magnificent Ocean, ricefields and mountain view this Freehold 2,000 m2 PROPERTY FOR SALE IN
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FOR SALE Affordable LAND IN TABANAN BALI TJTB357

FOR SALE Affordable LAND IN TABANAN BALI TJTB357

FOR SALE LAND IN TABANAN BALI   Featuring Unbelievable ricefields view this affordable 1,850 m2 LAND FOR SALE IN TABANAN is located
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FOR SALE Beautiful PROPERTY 400 m2 LAND IN JIMBARAN BALI TJJI119

FOR SALE Beautiful PROPERTY 400 m2 LAND IN JIMBARAN BALI TJJI119

FOR SALE LAND IN JIMBARAN BALI   Featuring Exotic Nice and cozy area this affordable 400 m2 BALI LAND FOR SALE is
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Affordable PROPERTY Tabanan Penebel 290 m2 LAND FOR SALE TJTB358

Affordable PROPERTY Tabanan Penebel 290 m2 LAND FOR SALE TJTB358

Tabanan LAND FOR SALE TJTB358 This affordable 290 m2 LAND FOR SALE IN TABANAN is located in Soka Jatiluwih, Tabanan Penebel.
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Exotic PROPERTY LAND IN Tabanan Penebel BALI FOR SALE TJTB359

Exotic PROPERTY LAND IN Tabanan Penebel BALI FOR SALE TJTB359

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FOR SALE Affordable PROPERTY LAND IN Jimbaran Ungasan TJJI120

FOR SALE Affordable PROPERTY LAND IN Jimbaran Ungasan TJJI120

FOR SALE LAND IN Jimbaran Ungasan Bali Featuring Astonishing Ocean View this affordable 4,350 m2 LAND FOR SALE IN JIMBARAN is
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Affordable TABANAN LAND FOR SALE TJTB360

Affordable TABANAN LAND FOR SALE TJTB360

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Exotic 400 m2 LAND IN JIMBARAN FOR SALE TJJI122

Exotic 400 m2 LAND IN JIMBARAN FOR SALE TJJI122

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Affordable 16,300 m2 LAND IN TABANAN BALI FOR SALE TJTB361

Affordable 16,300 m2 LAND IN TABANAN BALI FOR SALE TJTB361

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Beautiful LAND IN JIMBARAN BALI FOR SALE TJJI123

Beautiful LAND IN JIMBARAN BALI FOR SALE TJJI123

LAND IN JIMBARAN BALI FOR SALE TJJI123 Featuring Attractive Ocean View, cozy surroundings this affordable 1,000 m2 LAND FOR SALE IN
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Exotic LAND FOR SALE IN Tabanan Kerambitan TJTB362

Exotic LAND FOR SALE IN Tabanan Kerambitan TJTB362

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FOR SALE Beautiful PROPERTY 900 m2 LAND IN JIMBARAN BALI TJJI124

FOR SALE Beautiful PROPERTY 900 m2 LAND IN JIMBARAN BALI TJJI124

FOR SALE LAND IN JIMBARAN BALI   Located in Ungasan, Jimbaran Ungasan this affordable 900 sqm BALI PROPERTY FOR SALE featuring Magnificent
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FOR SALE Magnificent PROPERTY 1,000 m2 LAND IN Tabanan Selemadeg Timur TJTB363

FOR SALE Magnificent PROPERTY 1,000 m2 LAND IN Tabanan Selemadeg Timur TJTB363

FOR SALE LAND IN Tabanan Selemadeg Timur Bali This Freehold 1,000 m2 LAND IN TABANAN BALI FOR SALE is located in
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Beautiful CANGGU 400 m2 LAND FOR SALE TJCG219

Beautiful CANGGU 400 m2 LAND FOR SALE TJCG219

CANGGU LAND FOR SALE TJCG219 This Freehold 400 m2 PROPERTY FOR SALE IN CANGGU is located in Tumbak Bayuh, Canggu Pererenan.
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Beautiful PROPERTY LAND SALE IN Tabanan Selemadeg Timur BALI TJTB364

Beautiful PROPERTY LAND SALE IN Tabanan Selemadeg Timur BALI TJTB364

LAND SALE IN Tabanan Selemadeg Timur BALI Located in Gadungan, Tabanan Selemadeg Timur this affordable 9,000 sqm LAND IN TABANAN FOR
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Exotic PROPERTY LAND FOR SALE IN Jimbaran Ungasan BALI TJJI125

Exotic PROPERTY LAND FOR SALE IN Jimbaran Ungasan BALI TJJI125

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Affordable PROPERTY 600 m2 LAND SALE IN CANGGU TJCG220

Affordable PROPERTY 600 m2 LAND SALE IN CANGGU TJCG220

LAND SALE IN CANGGU BALI Located in Aseman, Canggu Brawa this affordable 600 sqm LAND IN CANGGU FOR SALE featuring Beautiful
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FOR SALE Magnificent LAND IN TABANAN TJTB365

FOR SALE Magnificent LAND IN TABANAN TJTB365

FOR SALE LAND IN TABANAN BALI This Freehold 20,000 m2 LAND IN TABANAN BALI FOR SALE is located in Gadungan, Tabanan
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Affordable LAND IN JIMBARAN FOR SALE TJJI126

Affordable LAND IN JIMBARAN FOR SALE TJJI126

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1) HAK MILIK / FREEHOLD TITLE

Hak Milik or Freehold title is the most complete and strongest form of Property title ownership in Indonesia. Only individuals of Indonesian Nationality are entitled to own Property under a Hak Milik title.  Consequently, neither limited liability companies (PT/Perusahaan Terbatas) nor foreign individuals may obtain land with a Hak Milik title. Subject to zoning restrictions, the Hak Milik title owner can use the land for any purpose, although it does not entitle the owner to exploit the natural resources found on or under the land. The title has no limit and may be sold, gifted, exchanged and bequeathed and may also be used in the form of a mortgage.

Foreigners may, however, acquire land under a Hak Milik title in another form of entitlement called HAK PAKAI or RIGHT OF USE.

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Beautiful PROPERTY UBUD LAND FOR SALE TJUB632

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Affordable PROPERTY 1,600 m2 LAND FOR SALE IN Sentral / Ubud Center TJUB633

Affordable PROPERTY 1,600 m2 LAND FOR SALE IN Sentral / Ubud Center TJUB633

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Affordable PROPERTY UBUD BALI 1,000 m2 LAND FOR SALE TJUB634

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Exotic PROPERTY 8,320 m2 LAND IN Sentral / Ubud Center FOR SALE TJUB635

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FOR SALE Magnificent PROPERTY 5,600 m2 LAND IN UBUD BALI TJUB636

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Magnificent PROPERTY Ubud Tegalalang 5,800 m2 LAND FOR SALE TJUB637

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FOR SALE Magnificent PROPERTY 5,842 m2 LAND IN UBUD BALI TJUB638

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Beautiful PROPERTY 4,200 m2 LAND SALE IN Sentral / Ubud Center TJUB639

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Beautiful PROPERTY 3,700 m2 LAND FOR SALE IN Sentral / Ubud Center TJUB640

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LAND SALE IN Sentral / Ubud Center BALI TJUB641

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Exotic 5,569 m2 LAND FOR SALE IN UBUD BALI TJUB642

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FOR SALE Affordable LAND IN Sentral / Ubud Center BALI TJUB643

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Affordable LAND IN Sentral / Ubud Center BALI FOR SALE TJUB644

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Beautiful LAND IN UBUD FOR SALE TJUB645

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Exotic Sentral / Ubud Center BALI LAND FOR SALE TJUB646

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Beautiful LAND IN UBUD FOR SALE TJUB647

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Magnificent LAND SALE IN Sentral / Ubud Center BALI TJUB648

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Affordable PROPERTY UBUD LAND FOR SALE TJUB649

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Magnificent 1,900 m2 LAND SALE IN UBUD BALI TJUB629

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Magnificent LAND SALE IN Ubud Payangan BALI TJUB628

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2) HAK PAKAI / RIGHT OF USE TITLE

Hak Pakai or Right of Use is a title over Freehold land and entitles the holder to use the land, including (subject to permitting requirements) the right to construct buildings.  A Hak Pakai title may be held by foreign individuals and foreign representative offices as well as Indonesian citizens and legal entities established under Indonesian law.  For foreigners to acquire a Hak Pakai title, they must be a resident or domiciled in Indonesia and therefore must hold a limited stay permit (KITAS) or a permanent stay permit (KITAP).

According to the Government Regulation (PP) no. 103 Year 2015, the term of granting rights to foreigners is specified to having a single property. Foreigners can acquire usage rights for 30 years. If the period has expired, it can be extended for another 20 years, then after a span of 50 years, the foreign national may renew his usage rights for a period of 30 years. In total, the given Right of Use period can reach 80 years.

Previously, in the provisions of Government Regulation (PP) No.41 of 1996, the Right to Use title for foreigners was shorter. The foreigners could only acquire the Right to Use for 25 years. After the 25 year period, the foreigners could renew their Right of Use period for the next 25 years. So, the total time period that could be obtained was only up to 50 years.

Under current laws, a Hak Pakai title is the only registered form of entitlement over land that can be granted to a foreign individual which can be evidenced by a land certificate reflecting the name of the foreigner and the term on the certificate which serves as formal evidence of this form of ownership right.  In accordance with Indonesian law, this title can be sold, gifted, exchanged and/or bequeathed, unless the deed of conveyance specifies otherwise, but under a Hak Milik title, it cannot be used in the form of a mortgage.

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Beautiful 10,000 m2 LAND IN TABANAN FOR SALE TJTB354

10,000 m2 LAND IN TABANAN FOR SALE TJTB354 This Freehold 10,000 m2 PROPERTY FOR SALE IN TABANAN is located in Sukawati
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Exotic PROPERTY 2,000 m2 LAND FOR SALE IN Tabanan Selemadeg TJTB356

Exotic PROPERTY 2,000 m2 LAND FOR SALE IN Tabanan Selemadeg TJTB356

LAND FOR SALE IN Tabanan Selemadeg Bali Featuring Attractive Ocean, ricefields and mountain view this affordable 2,000 m2 LAND IN TABANAN
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FOR SALE Magnificent PROPERTY LAND IN Tabanan Selemadeg TJTB357

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Magnificent LAND IN TABANAN FOR SALE TJTB358

Magnificent LAND IN TABANAN FOR SALE TJTB358

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Beautiful 200 m2 LAND IN TABANAN FOR SALE TJTB359

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Beautiful PROPERTY LAND SALE IN TABANAN BALI TJTB360

LAND SALE IN TABANAN BALI   Featuring Extraordinary Tropical Garden this Freehold 10,100 m2 LAND FOR SALE IN TABANAN is located in
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Magnificent PROPERTY 16,300 m2 LAND IN Tabanan Selemadeg Barat FOR SALE TJTB361

16,300 m2 LAND IN Tabanan FOR SALE TJTB361 This affordable 16,300 m2 PROPERTY FOR SALE IN TABANAN BALI is located in
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Beautiful PROPERTY LAND FOR SALE IN Tabanan Kerambitan BALI TJTB362

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Affordable PROPERTY LAND SALE IN TABANAN TJTB363

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Exotic PROPERTY 9,000 m2 LAND SALE IN TABANAN TJTB364

LAND SALE IN TABANAN BALI Featuring Astonishing Tropical Garden this Freehold 9,000 m2 PROPERTY FOR SALE IN BALI is located in
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Affordable 20,000 m2 LAND FOR SALE IN Tabanan Selemadeg Timur TJTB365

Affordable 20,000 m2 LAND FOR SALE IN Tabanan Selemadeg Timur TJTB365

LAND FOR SALE IN Tabanan Selemadeg Timur Bali Located in Gadungan, Tabanan Selemadeg Timur this affordable 20,000 sqm LAND FOR SALE
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Magnificent PROPERTY LAND IN Tabanan Selemadeg BALI FOR SALE TJTB334

Magnificent PROPERTY LAND IN Tabanan Selemadeg BALI FOR SALE TJTB334

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Magnificent LAND SALE IN TABANAN TJTB335

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Exotic 3,700 m2 LAND IN TABANAN BALI FOR SALE TJTB336

LAND IN TABANAN BALI FOR SALE TJTB336 Featuring Exotic Tropical Garden this affordable 3,700 m2 LAND IN TABANAN FOR SALE is
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Magnificent LAND FOR SALE IN Tabanan Selemadeg TJTB337

Magnificent LAND FOR SALE IN Tabanan Selemadeg TJTB337

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FOR SALE Beautiful PROPERTY 1,800 m2 LAND IN Tabanan Selemadeg TJTB338

FOR SALE Beautiful PROPERTY 1,800 m2 LAND IN Tabanan Selemadeg TJTB338

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11,400 m2 LAND SALE IN Tabanan Selemadeg BALI TJTB339

LAND SALE IN Tabanan Selemadeg BALI Located in Klecung Tegal Mengkeb, Tabanan Selemadeg this affordable 11,400 sqm LAND IN TABANAN FOR
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Affordable PROPERTY LAND FOR SALE IN TABANAN BALI TJTB340

LAND FOR SALE IN TABANAN BALI  Located in Beraban Tegal Mengkeb, Tabanan Selemadeg this Freehold 11,600 sqm LAND IN TABANAN FOR
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Magnificent TABANAN BALI 7,400 m2 LAND FOR SALE TJTB341

Magnificent TABANAN BALI 7,400 m2 LAND FOR SALE TJTB341

TABANAN BALI LAND FOR SALE TJTB341 Located in Beraban Tegal Mengkeb, Tabanan Selemadeg this affordable 7,400 sqm LAND IN TABANAN FOR
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Beautiful LAND IN Tabanan Kerambitan FOR SALE TJTB342

Beautiful LAND IN Tabanan Kerambitan FOR SALE TJTB342

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3) HAK SEWA / LEASEHOLD TITLE

Hak Sewa or Leasehold title entitles the holder the right to use an empty plot of land or the building(s) on someone else’s land for a fixed period of time.  A Leasehold Right title can be granted over land currently held under a Freehold title (Hak Milik), Right to Build title (HGB) or Right to Use title (Hak Pakai).  Indonesian individuals, Indonesian legal entities and foreign individuals and legal entities resident in Indonesian may acquire Hak Sewa. The period of lease is generally around 25 years and usually there is an option to extend the lease, which will be specified in the agreement.

In accordance with general principles of lease laws, the right cannot normally be sold or otherwise transferred without the consent of the lessor.  Hak Sewa cannot be used in the form of a mortgage, nor can it be registered with the National Land Agency.  Subject to the conditions of a lease contract, a foreigner may lease an empty plot of land, build permanent buildings on the land and resell the remaining balance of the lease term to any third party by way of a sub-lease or transfer of Leasehold Right.

Leases of office space, factory buildings and residential premises are all examples of Hak Sewa titles.  Residential properties can include apartments, condominiums, villas and houses.

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Affordable LAND IN Canggu Pererenan FOR SALE TJCG219

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Exotic Canggu Brawa LAND FOR SALE TJCG220

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Magnificent LAND SALE IN Canggu Brawa TJCG221

Magnificent LAND SALE IN Canggu Brawa TJCG221

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Magnificent 1,480 m2 LAND FOR SALE IN CANGGU TJCG212

Magnificent 1,480 m2 LAND FOR SALE IN CANGGU TJCG212

LAND FOR SALE IN CANGGU BALI Featuring Fantastic Rice Fields View this affordable 1,480 m2 LAND IN BALI FOR SALE is
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Beautiful 150 m2 LAND IN CANGGU FOR SALE TJCG213

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Affordable PROPERTY CANGGU 1,000 m2 LAND FOR SALE TJCG214

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FOR SALE Magnificent PROPERTY 900 m2 LAND IN CANGGU TJCG215

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Beautiful PROPERTY 410 m2 LAND FOR SALE IN CANGGU BALI TJCG216

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Affordable LAND SALE IN Canggu Echo Beach TJCG209

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945 m2 LAND SALE IN Canggu Pererenan BALI TJCG210

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FOR SALE Affordable 600 m2 LAND IN Canggu Pererenan BALI TJCG211

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Exotic 1,125 m2 LAND IN CANGGU FOR SALE TJCG208

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Magnificent CANGGU 250 m2 LAND FOR SALE TJCG207

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Beautiful 600 m2 LAND SALE IN CANGGU TJCG206

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Exotic PROPERTY 300 m2 LAND FOR SALE IN CANGGU BALI TJCG205

Exotic PROPERTY 300 m2 LAND FOR SALE IN CANGGU BALI TJCG205

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Magnificent PROPERTY 335 m2 LAND IN CANGGU BALI FOR SALE TJCG204

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Beautiful PROPERTY CANGGU BALI 300 m2 LAND FOR SALE TJCG203

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Canggu Brawa LAND FOR SALE TJCG202

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Affordable 500 m2 LAND FOR SALE IN CANGGU TJCG201

Affordable 500 m2 LAND FOR SALE IN CANGGU BALI This affordable 500 m2 PROPERTY FOR SALE IN BALI is located in Berawa,
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Affordable LAND SALE IN Canggu Brawa TJCG200

Affordable LAND SALE IN Canggu Brawa TJCG200

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4) HAK GUNA BANGUNAN ( HGB ) / RIGHT TO BUILD TITLE

Hak Guna Bangunan or HGB title entitles the holder to construct and own buildings or other structures on the land in state-owned land (Tanah Milik Negara), freehold land (Hak Milik) and HPL (Hak Pengelolaan) land.  This is the most common title for residential, commercial and industrial properties.  An HGB title can be owned by individuals of Indonesian Nationality, Indonesian legal entities, including Foreign Capital Investment Companies (Penanaman Modal Asing/PMA), or Domestic Capital Investment Companies (Penanaman Modal Dalam Negeri/PMDN).  Thus, any legal entities such as limited liability companies (Perusahaan Terbatas/PT) which are established under Indonesian Law and domiciled in Indonesia, may obtain an HGB title.  However, an HGB title is not available for foreign individuals.

An HGB title is granted for an initial period of up to 30 years and can generally be extended for an additional period of 20 years.  Subsequent extensions are at the discretion of the state and may be renewed for another 30 years.  An approved capital investment company (i.e., PMA or PMDN company), may obtain HGB rights for a period of 80 years (i.e., 30 year initial term, plus 20 year extension term, plus 30 year renewal term) by payment of certain up-front official costs (Uang Permasukan).

HGB title over Freehold (Hak Milik) land is valid for a period of 30 years only.  Any extensions beyond 30 years would be subject to a new agreement with the landowner and registration of a new HGB/Right to Build title over the privately owned land.

An HGB/Right to Build title can be sold, gifted, exchanged or bequeathed by an Indonesian and/or encumbered by a mortgage.

If you require further information about property ownership in Indonesia, feel free to contact us

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