Indonesian property law prohibits freehold ownership by foreign nationals, but several alternative structures provide secure, long-term ownership interests. We guide clients through the right structure for their goals — whether buying a villa, acquiring a commercial property, or investing through a PT PMA.
Available Ownership Structures
- Hak Pakai (Right to Use) — Granted for 25-30 years, extendable. The most common route for individual foreign buyers of residential property.
- Hak Sewa (Lease) — Long-term lease (typically 25-30 years) registered at the Land Office. Strong tenant protections.
- Hak Guna Bangunan — Building rights available to PT PMA entities for commercial property.
- PT PMA Ownership — A foreign-owned company holds Hak Milik (freehold) on behalf of shareholders.
- Nominee Arrangements — NOT recommended. Considered legally risky and increasingly scrutinized by authorities.
Services Include
- Title searches and due diligence at the relevant Kantor Pertanahan
- Hak Pakai application, renewal, and extension
- Sale & Purchase Agreements (Akta Jual Beli) drafting and review
- Property tax (PBB, BPHTB) advisory
- Lease and rental agreement drafting
- Cross-border inheritance planning for property
- Dispute resolution for property conflicts