Property Ownership Rules

The Indonesian government has established regulations governing property ownership for foreigners. For those interested in owning landed property, the concept of "Right to Use" (locally known as Hak Pakai) is applied, with a duration of 80 years divided into three phases (30 years, a 20-year extension, and a subsequent 30-year renewal).

In addition to landed property, foreigners can also own condominiums with various types of ownership rights, such as Right to Use or Right to Build (Hak Guna Bangunan - HGB). In the case of condominiums with Right of Ownership (Hak Milik), the ownership duration extends to 80 years with a phased approach that provides legal certainty. Even though they do not own the land, ownership of the apartment units remains legally valid.

It is essential to note that properties developed in areas with Management Rights (Hak Pengelolaan) are subject to specific regulations as outlined in Government Regulation (PP) Number 18 of 2021. Whether for foreign nationals or Indonesians, if a property has Management Rights as its underlying right, additional fees are imposed for the issuance of an HPL (Hak Pengelolaan) Recommendation in all legal proceedings. However, there are exceptions for properties located in special economic zones, free trade zones, free ports, industrial zones, and other economic areas.

Furthermore, it's crucial to emphasize that even though property ownership is closely regulated, apartment unit owners are still obligated to pay land-related taxes. These rules ensure that property ownership by foreigners in Indonesia adheres to the applicable regulations and supports sustainable development in the real estate sector.

 

Sumber: Guidelines on Foreigners’ Property Ownership in Indonesia


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