Land Certificate

The business permit Indonesia rights granted are, usufructuary rights, building use rights, and usufructuary rights for foreign investors and there are several land certificates that must be known by foreign investors, namely, Right to manage, Right to cultivate, Right to use, Right to build, Right of ownership over stacked units, Rights for underground and overground space and Land registration.

There are two types of usufructuary titles, there are usufructuary rights for a certain period of time and usufructuary rights over land used for a specific purpose. This land right usually refers to the right to use/harvest land directly owned by the state or private land. This land can also be used for building sites other than for agricultural purposes.

The right to use the title for a certain period can be granted to foreign legal entities that have a representative  office, foreign citizens, as well as local entities and citizens. This encompasses state land, freehold title land, and the right to manage land.

If granted for state land and the right to manage land, the title is for a maximum term of 30 years and extendable for another 20. Once the period expires, the title can be extended for another 30 years (a total  of 80 years). Previously, an HP title could only be granted for 25 years, and extended for another 20 years, before another renewal of 25 years (a total of 70 years).

The right to build (HGB) is a title that is granted overstate or freehold land to Indonesian citizens. The purpose of erecting or using a building on the land. The maximum term for an  HGB title is 30 years and is extendable for another 20 years. Once this expires, it can be renewed again for  another 30 years (80 years in total).

 

Source: asiainvestmentresearch.org


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