White Papers: Investing In Land In Indonesia
A Timeline For Land Purchases In Indonesia
While every purchase is different and timelines can vary widely, here is a summary of the key milsestones to expect,…
Lombok Land – Why Prospects For Investors In Lombok’s Tourism Sector Have Never Been Better
There has been a flurry of announcements in recent weeks that will bring a significant rise in land values in…
Positive Indicators For Land Investors
Investors in land and property for tourism development in Indonesia have benefited from annual capital gains of 30-120% over the…
Lombok Market Update: Why Selong Belanak and the Surrounding Beaches Are Our Top Pick For Investors
Background Information - Infrastructure Development on Lombok The past 3 years have seen real and positive improvements in infrastructure across…
FAQs: Land Ownership in Indonesia
______________________________________________________________________________________________________________________________ Q: Can foreigners own land in Indonesia? [To read our interview with Peter Fanning, of Counsel, Hutabarat Rekan Halim,…
Glossary of Land Title / Key Terms
Hak Guna Bangunan [HGB] - Building Rights Title: The transferable right to build and own buildings on land. HBG titles can be granted to foreign investment [PMA] companies. PMA companies can be 100% foreign owned. HGB title rights are granted for 30 years, renewable for an additional 20-30.
Hak Guna Usaha [HGU] - Land Cultivation Rights Title: The right to use state-owned land for agriculture, for 35 years extendable by 25 years. Agricultural use includes crop cultivation. cattle-rearing, plantations and fishing.
Hak Milik – Freehold Title: Cannot be held by non-Indonesians.
Hak Pakai [HP] – The Right To Use Title: The non-transferable right to use the land for any purpose. Granted for up to 25 years, extendable for another 20.
Hak Sewa - The Right To Rent Title: A lease on the land from the freeholder, usually for 30 years renewable for an additional 20. The name on the title remains that of the freeholder.
"Ijin Mendirikan Bangunan [IMB]" - A building permit
"Pondok Wisata" - A license to operate a guesthouse
"Sporadik" – Land that has been registered but has no physical certificate. A certificate under the owners name can be drawn up.
Please note that certain titles can be held by resident / non-resident foreigners or by foreign investment companies, others cannot. For more information please click here. Always take detailed legal advice before investing.