Different Land Titles You Need to Know About

Land Titles in Indonesia

Freehold

The freehold title provides unlimited rights to use land for any purpose indefinitely. Only Indonesian citizens and certain Indonesian legal entities qualify for freehold titles, which represent the most extensive sort of land rights in Indonesia and can be transferred to other parties.

Right to Cultivate

Hak Guna Usaha (HGU) grants rights to cultivate state-held land for activities like farming, fishing, and cattle ranching. The duration spans 25 years for individuals and 35 years for legal companies, with options for extension and renewal up to 35 years maximum. Indonesian nationals and domestic legal entities like PT PMA are eligible holders.

Right to Build

Hak Guna Bangunan (HGB) allows development and building ownership on non-owned land for up to 30 years, renewable for an additional 20 years. Eligible holders include Indonesian citizens and domestic legal entities.

Key distinctions:

• HGB can apply to state lands, HPL lands, or freehold titles
• Over state and HPL lands, renewal extends up to 30 years
• Over freehold lands, HGB can extend indefinitely with proper documentation

Right to Use

Hak Pakai (HP) provides usage rights and product collection from state-controlled or privately-owned land. Two categories exist:

HP with a period allows 30-year terms (renewable for additional 20 years) and may be granted to Indonesian citizens, domestic legal entities, foreign legal entities with Indonesian representatives, organizations, and foreign nationals.

HP (as long as used) applies to state and HPL lands with indefinite duration for government institutions, regional bodies, and foreign representatives.

Right to Manage

Hak Pengelolaan Lepas (HPL) represents delegated state control rights. HPL holders gain authority to designate and utilize land portions per spatial plans. HPL cannot serve as debt collateral or transfer to third parties, though collaborative arrangements with third parties may carry different restrictions.

Right to Lease

Hak Sewa (HS) permits building on another's land in exchange for rental payments. Eligible holders include Indonesian citizens, foreign residents, domestic legal entities, and foreign entities with Indonesian representation.

Foreign Land Ownership

Foreigners establishing businesses require PT PMA registration. Foreign nationals may acquire:

• HP rights
• Stacked unit ownership rights with proper permits

Residential property restrictions include minimum price requirements, area limits, unit caps, and occupancy provisions. New regulations allow foreign purchase of landed houses under HP category for up to 80 years.

Condominiums, apartments, and office spaces may be owned if classified as HP and not part of government-subsidized housing.