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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 TJTB376

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Beautiful Property 616 m2 LAND SALE IN UBUD BALI INDONESIA TJUB650

Beautiful Property 616 m2 LAND SALE IN UBUD BALI INDONESIA TJUB650

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Beautiful PROPERTY 3,000 m2 LAND SALE IN Tabanan Selemadeg BALI

Beautiful PROPERTY 3,000 m2 LAND SALE IN Tabanan Selemadeg BALI

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FOR SALE Beautiful 1,100 m2 LAND IN UBUD PEJENG BALI TJUB651

FOR SALE Beautiful 1,100 m2 LAND IN UBUD PEJENG BALI TJUB651

Affordable PROPERTY 1,100 m2 LAND FOR SALE IN Ubud Pejeng TJUB651 FOR SALE LAND IN BALI Located in Br. Sala Pejeng,
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FOR SALE Affordable PROPERTY 13,305 m2 LAND IN TABANAN BALI TJTB367

FOR SALE Affordable PROPERTY 13,305 m2 LAND IN TABANAN BALI TJTB367

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Exotic PROPERTY Tabanan Selemadeg BALI 9,190 m2 LAND FOR SALE TJTB368

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Affordable PROPERTY 1,000 m2 LAND FOR SALE IN Ubud Tegalalang BALI

Affordable PROPERTY 1,000 m2 LAND FOR SALE IN Ubud Tegalalang BALI

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FOR SALE Beautiful PROPERTY 10,400 m2 LAND IN Tabanan Selemadeg BALI

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Magnificent Ubud Tegalalang BALI 2,456 m2 LAND FOR SALE TJUB654

Magnificent Ubud Tegalalang BALI 2,456 m2 LAND FOR SALE TJUB654

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Magnificent PROPERTY LAND FOR SALE IN TABANAN Bedugul BALI TJTB370

Magnificent PROPERTY LAND FOR SALE IN TABANAN Bedugul BALI TJTB370

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Exotic PROPERTY 25,000 m2 LAND IN Ubud Payangan BALI FOR SALE TJUB655

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Beautiful PROPERTY 1,100 m2 LAND SALE IN Tabanan Bedugul BALI TJTB371

Beautiful PROPERTY 1,100 m2 LAND SALE IN Tabanan Bedugul BALI TJTB371

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Magnificent PROPERTY 3,400 m2 LAND IN UBUD BALI FOR SALE TJUB656

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FOR SALE Affordable PROPERTY 600 m2 LAND IN TABANAN BALI TJTB372

FOR SALE Affordable PROPERTY 600 m2 LAND IN TABANAN BALI TJTB372

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Magnificent PROPERTY Ubud Pejeng Bali LAND FOR SALE TJUB657

Magnificent PROPERTY Ubud Pejeng Bali LAND FOR SALE TJUB657

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Magnificent LAND FOR SALE in TABANAN BALI TJTB373

Magnificent LAND FOR SALE in TABANAN BALI TJTB373

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FOR SALE Affordable PROPERTY LAND IN Ubud Pejeng BALI TJUB658

FOR SALE Affordable PROPERTY LAND IN Ubud Pejeng BALI TJUB658

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Magnificent 2,280 m2 LAND IN TABANAN FOR SALE TJTB374

Magnificent 2,280 m2 LAND IN TABANAN FOR SALE TJTB374

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Beautiful PROPERTY 400 m2 LAND SALE IN Ubud Gianyar TJUB659

Beautiful PROPERTY 400 m2 LAND SALE IN Ubud Gianyar TJUB659

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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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Magnificent Property 616 m2 LAND IN UBUD BALI FOR SALE TJUB650

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Magnificent PROPERTY UBUD BALI 1,100 m2 LAND FOR SALE TJUB651

Magnificent PROPERTY UBUD BALI 1,100 m2 LAND FOR SALE TJUB651

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FOR SALE Affordable PROPERTY LAND IN Ubud Pejeng BALI TJUB652

FOR SALE Affordable PROPERTY LAND IN Ubud Pejeng BALI TJUB652

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Beautiful 1,000 m2 LAND SALE IN UBUD TEGALALANG BALI TJUB653

Beautiful 1,000 m2 LAND SALE IN UBUD TEGALALANG BALI TJUB653

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Exotic PROPERTY LAND FOR SALE IN Ubud Tegalalang BALI TJUB654

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FOR SALE Exotic PROPERTY 3,400 m2 LAND IN UBUD BALI TJUB656

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Exotic PROPERTY 600 m2 LAND FOR SALE IN Ubud Pejeng TJUB657

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Beautiful Ubud Pejeng BALI LAND FOR SALE TJUB658

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Magnificent PROPERTY 400 m2 LAND IN Ubud Gianyar FOR SALE TJUB659

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FOR SALE Exotic PROPERTY LAND IN Ubud Gianyar BALI TJUB660

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Beautiful PROPERTY Ubud Gianyar 4,000 m2 LAND FOR SALE TJUB661

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FOR SALE Beautiful PROPERTY 6,300 m2 LAND IN UBUD BALI TJUB662

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Magnificent PROPERTY LAND SALE IN UBUD TJUB663

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Beautiful PROPERTY 600 m2 LAND FOR SALE IN Sentral Ubud TJUB664

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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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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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FOR SALE Affordable PROPERTY 3,000 m2 LAND IN Tabanan Selemadeg BALI

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Magnificent PROPERTY Tabanan Selemadeg BALI LAND FOR SALE TJTB367

Magnificent PROPERTY Tabanan Selemadeg BALI LAND FOR SALE TJTB367

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Magnificent PROPERTY 10,400 m2 LAND FOR SALE IN TABANAN BALI TJTB369

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Affordable PROPERTY LAND IN Tabanan Bedugul BALI FOR SALE TJTB370

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FOR SALE Affordable PROPERTY 1,100 m2 LAND IN Tabanan Bedugul BALI

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Magnificent PROPERTY LAND IN Tabanan Bedugul BALI FOR SALE TJTB372

Magnificent PROPERTY LAND IN Tabanan Bedugul BALI FOR SALE TJTB372

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Magnificent LAND FOR SALE IN TABANAN TJTB373

Magnificent LAND FOR SALE IN TABANAN TJTB373

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Beautiful 2,280 m2 LAND IN TABANAN FOR SALE TJTB374

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Magnificent PROPERTY TABANAN BALI LAND FOR SALE TJTB375

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FOR SALE Magnificent PROPERTY LAND IN Tabanan Selemadeg TJTB377

FOR SALE Magnificent PROPERTY LAND IN Tabanan Selemadeg TJTB377

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Beautiful TABANAN LAND FOR SALE TJTB378

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Affordable PROPERTY TABANAN 1,800 m2 LAND FOR SALE TJTB379

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Exotic PROPERTY 4,500 m2 LAND FOR SALE IN TABANAN Selemadeg BALI TJTB380

Exotic PROPERTY 4,500 m2 LAND FOR SALE IN TABANAN Selemadeg BALI TJTB380

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Beautiful 10,000 m2 LAND IN TABANAN FOR SALE TJTB354

Beautiful 10,000 m2 LAND IN TABANAN FOR SALE TJTB354

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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

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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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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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Magnificent 1,480 m2 LAND FOR SALE IN CANGGU TJCG212

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Beautiful PROPERTY 410 m2 LAND FOR SALE IN CANGGU BALI TJCG216

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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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Beautiful 600 m2 LAND SALE IN CANGGU TJCG206

Beautiful 600 m2 LAND SALE IN CANGGU TJCG206

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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

Beautiful PROPERTY CANGGU BALI 300 m2 LAND FOR SALE TJCG203

Beautiful PROPERTY CANGGU BALI LAND FOR SALE TJCG203 This affordable 300 m2 PROPERTY FOR SALE IN CANGGU BALI is located in
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Canggu Brawa LAND FOR SALE TJCG202

Canggu Brawa LAND FOR SALE TJCG202

Affordable Canggu LAND FOR SALE TJCG202 Featuring Exceptional Cozy Area with Some Villas Arround this Freehold 400 m2 PROPERTY FOR SALE
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Affordable 500 m2 LAND FOR SALE IN CANGGU TJCG201

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

Affordable LAND SALE IN Canggu Brawa TJCG200 This Freehold 675 m2 PROPERTY IN BALI FOR SALE is located in Berawa, Canggu
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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

Affordable PROPERTY LAND SALE IN Nusadua BALI TJJI119

Affordable PROPERTY LAND SALE IN Nusadua BALI TJJI119

LAND SALE IN JIMBARAN Nusadua BALI TJJI119 This affordable 400 m2 PROPERTY FOR SALE IN JIMBARAN BALI is located in NusaDua,
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FOR SALE Exotic 4,350 m2 LAND IN Jimbaran Ungasan BALI TJJI120

FOR SALE Exotic 4,350 m2 LAND IN Jimbaran Ungasan BALI TJJI120

FOR SALE LAND IN Jimbaran Ungasan BALI This affordable 4,350 m2 LAND IN BALI FOR SALE is located in Ungasan, Jimbaran
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Beautiful PROPERTY 400 m2 LAND IN JIMBARAN BALI FOR SALE TJJI122

Beautiful PROPERTY 400 m2 LAND IN JIMBARAN BALI FOR SALE TJJI122

400 m2 LAND IN JIMBARAN BALI FOR SALE TJJI122 This Freehold 400 m2 PROPERTY FOR SALE IN JIMBARAN BALI is located
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Exotic Jimbaran Ungasan 1,000 m2 LAND FOR SALE TJJI123

Exotic Jimbaran Ungasan 1,000 m2 LAND FOR SALE TJJI123

Jimbaran LAND FOR SALE TJJI123 This affordable 1,000 m2 LAND FOR SALE IN JIMBARAN is located in Ungasan, Jimbaran Ungasan. Featuring
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Affordable PROPERTY LAND SALE IN Jimbaran Ungasan BALI TJJI124

Affordable PROPERTY LAND SALE IN Jimbaran Ungasan BALI TJJI124

LAND SALE IN Jimbaran Ungasan BALI Featuring Extraordinary Residential environment this Freehold 900 m2 PROPERTY FOR SALE IN JIMBARAN is located
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Beautiful 493 m2 LAND FOR SALE IN JIMBARAN TJJI125

Beautiful 493 m2 LAND FOR SALE IN JIMBARAN TJJI125

LAND FOR SALE IN JIMBARAN BALI Located in Puri Gading, Jimbaran Ungasan this Freehold 493 sqm LAND IN JIMBARAN FOR SALE
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Beautiful PROPERTY JIMBARAN BALI LAND FOR SALE TJJI126

Beautiful PROPERTY JIMBARAN BALI LAND FOR SALE TJJI126

JIMBARAN BALI LAND FOR SALE TJJI126 This Freehold 7,500 m2 LAND IN BALI FOR SALE is located in Padang Padang, Jimbaran
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Affordable 2,400 m2 LAND SALE IN Jimbaran Uluwatu  BALI TJJI110

Affordable 2,400 m2 LAND SALE IN Jimbaran Uluwatu BALI TJJI110

LAND SALE IN Jimbaran Uluwatu BALI TJJI110 Featuring Outstanding Cozy Surrounding with some villas arround this affordable 2,400 m2 LAND FOR
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Beautiful Jimbaran Uluwatu  BALI LAND FOR SALE TJJI111

Beautiful Jimbaran Uluwatu BALI LAND FOR SALE TJJI111

Jimbaran Uluwatu BALI LAND FOR SALE TJJI111 Featuring Astonishing Cozy Surrounding with some villas arround this affordable 1,000 m2 LAND IN
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Exotic PROPERTY LAND FOR SALE IN JIMBARAN BALI TJJI112

Exotic PROPERTY LAND FOR SALE IN JIMBARAN BALI TJJI112

LAND FOR SALE IN JIMBARAN BALI   Located in Pecatu Uluwatu, Jimbaran Uluwatu this affordable 16,000 sqm LAND FOR SALE IN
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Magnificent PROPERTY 3,100 m2 LAND FOR SALE IN JIMBARAN BALI TJJI113

Magnificent PROPERTY 3,100 m2 LAND FOR SALE IN JIMBARAN BALI TJJI113

LAND FOR SALE IN JIMBARAN BALI   Featuring Interesting Ocean View this Freehold 3,100 m2 PROPERTY FOR SALE IN BALI is
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Affordable 2,000 m2 LAND IN Jimbaran Uluwatu  FOR SALE TJJI114

Affordable 2,000 m2 LAND IN Jimbaran Uluwatu FOR SALE TJJI114

 2,000 m2 LAND IN Jimbaran FOR SALE TJJI114 Featuring Stunning Ocean View this affordable 2,000 m2 LAND FOR SALE IN JIMBARAN
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FOR SALE Exotic 2,000 m2 LAND IN Jimbaran Uluwatu  BALI TJJI115

FOR SALE Exotic 2,000 m2 LAND IN Jimbaran Uluwatu BALI TJJI115

FOR SALE LAND IN Jimbaran Uluwatu BALI Located in Puri Gading, Jimbaran Uluwatu this affordable 2,000 sqm LAND FOR SALE IN
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Magnificent PROPERTY LAND IN JIMBARAN BALI FOR SALE TJJI116

Magnificent PROPERTY LAND IN JIMBARAN BALI FOR SALE TJJI116

Affordable LAND IN JIMBARAN BALI FOR SALE TJJI116 Featuring Interesting Cozy Surrounding with some villas arround this Freehold 1,670 m2 LAND
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Beautiful PROPERTY 2,300 m2 LAND IN JIMBARAN BALI FOR SALE TJJI117

Beautiful PROPERTY 2,300 m2 LAND IN JIMBARAN BALI FOR SALE TJJI117

2,300 m2 LAND IN JIMBARAN BALI FOR SALE TJJI117 This Freehold 2,300 m2 PROPERTY FOR SALE IN JIMBARAN is located in
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Exotic Jimbaran Ungasan 2,500 m2 LAND FOR SALE TJJI118

Exotic Jimbaran Ungasan 2,500 m2 LAND FOR SALE TJJI118

Exotic Jimbaran  LAND FOR SALE TJJI118 This affordable 2,500 m2 LAND IN BALI FOR SALE is located in Puri Gading, Jimbaran
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Magnificent 350 m2 LAND SALE IN Jimbaran Ungasan TJJI103

Magnificent 350 m2 LAND SALE IN Jimbaran Ungasan TJJI103

LAND SALE IN Jimbaran Ungasan Bali Featuring Stunning Cozy Surrounding with some villas arround this affordable 350 m2 LAND FOR SALE
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Beautiful PROPERTY LAND FOR SALE IN JIMBARAN TJJI104

Beautiful PROPERTY LAND FOR SALE IN JIMBARAN TJJI104

LAND FOR SALE IN JIMBARAN BALI Located in Pantai Pandawa, Jimbaran Kutuh this affordable 200 sqm PROPERTY FOR SALE IN BALI
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Jimbaran Ungasan BALI 513 m2 LAND FOR SALE TJJI105

Jimbaran Ungasan BALI 513 m2 LAND FOR SALE TJJI105

Jimbaran Ungasan BALI LAND FOR SALE TJJI105 Located in Puri Gading, Jimbaran Ungasan this Freehold 513 sqm LAND IN JIMBARAN FOR
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FOR SALE Affordable PROPERTY LAND IN JIMBARAN TJJI106

FOR SALE Affordable PROPERTY LAND IN JIMBARAN TJJI106

FOR SALE LAND IN JIMBARAN BALI This Freehold 200 m2 LAND IN BALI FOR SALE is located in Bukit Hijau Ungasan, Jimbaran
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