Legal

• Lease right is a right to use the land which belongs to another party with obligations to pay the lease fee in a certain time (ie monthly / annually) and sets out the other terms and conditions for using the land as regulated by both parties in the lease agreement.
• Lease rights do not include ownership of the land, but is one way to occupy and use the land following the terms and conditions as set out in the lease agreement.
• Regulated in Agrarian Law No. 5 year 1960, Article 44 and 45;

1. Indonesian citizens
2. Foreigners who are domiciled in Indonesia (holding KITAS);
3. A legal entity established under Indonesian law and domiciled in Indonesia;
4. Foreign legal entities that have representatives in Indonesia.

On which conditions:

As agreed in the lease agreement regarding the terms and conditions to hold the lease rights (i.e. lease fee, object details, lease period, etc.)

• Land ownership, i.e the strongest and fullest hereditary rights that can be owned by a person / several persons over the land and ownership rights can be transferred to other parties.
• Regulated in Agrarian Law No. 5 year 1960, Article 20 - 27;

On which conditions:

This rights can be transferred to other parties through the following ways,

1. Sell and Purchase Agreement;
2. Grant Letter (Grant);
3. Inheritance (inheritance);
4. Land Title Change.

• Rights to Build are the rights to construct and own buildings on land, with a maximum period of 30 years. The term of the Rights to Build can be extended for a maximum period of 20 years and can be renewed for a period of 30 years. Thus, the total length of the HGB is 80 years.The safest way for foreigners to own land in Indonesia is through a 100% foreign owned limited liability company (PT PMA). The name of the PT PMA goes on the land certificate, and the company has full control over the land during the validity of the HGB.
• Regulated in Agrarian Law No. 5 year 1960, Article 35 - 40;

1. Indonesian citizens
2. A legal entity established under Indonesian law and domiciled in Indonesia (e.g. most commonly PT PMA, PT local);

On which conditions:

This rights can be transferred to other parties through the following ways

1. Sell and Purchase Agreement (Jual Beli);
2. Grant Letter (Hibah);
3. Inheritance (Pewarisan);
4. Land Title Change.

1. Land which is directly occupied by the country, which gives the authority and obligations that are determined in the decision to grant it by the competent authority, or
2. Land which is owned by another Person in the agreement with the landowner, which is not a lease agreement or land cultivation agreement, any other as long as it does not conflict with the provisions as regulated in Agrarian Law.

HP is a certificate commonly used by Foreigners but is suitable only if land has a certain value and already has a building on it. It is not possible to obtain HP on the land without a building. The property with an HP certificate can be used for residential purposes only.

Regulated in Agrarian Law No. 5 year 1960, Article 41 - 43;

• In Bali minimum price for a single House With Hak Pakai is set at minimum: IDR. 5.000.000.000,-. for an apartment with Hak Pakai is set at minimum: IDR. 2.000.000.000,-. Other provinces have a difference in the minimum price.
• Maximum size is 2,000 m² (20 are). based on the Ministry of Agrarian Decree No. 29 year 2016 article 5 (2b)
• ONE name ONE Property/Hak Pakai.

1. Indonesian citizens;
2. Foreigners who are domiciled in Indonesia (i.e. KITAS holders);
3. A legal entity established under Indonesian. law and domiciled in Indonesia;
4. Foreign legal entities that have representatives in Indonesia;
5. Department, non-departmental government agencies, and local governments;
6. Representatives of foreign countries and representatives of international organizations;
7. Religious organization and social organization.

On which conditions:

1. The Right to Use can be transferred to another party, if this is possible in the agreement concerned through the following ways,
   • Land Title Change;
   • Grant Letter (Grant);
   • Inheritance (inheritance);
   • Sell & Purchase
2. The Right to Use can be granted for a maximum period of 30 years and can be extended for a maximum period of 20 years and can be renewed for a period of 30 years.
   Thus the total validity of Right to Use is 80 years or granted for an indefinite period as long the land is used for certain purposes.
3. The Right to Use can be granted
   • An unspecified period as long as it is used for certain purposes given to:
     • Departments, non-departmental government agencies, and local governments,
     • Representatives of foreign countries and representatives of international organization;
       Religious organization and social organization.
   • Free of charge, with payment or provision of services of any kind.
4. Granting the Rights to Use must not be accompanied by conditions that contain elements of extortion.