Rules for Foreigners buying properties in Indonesia

Expatriate business people in Indonesia have rightful concern regarding land use and
ownership rights for business purposes. Act No. 5 of 1960 (UUPA No.5/1996) regulates
the umbrella law regarding rights over land ownership. The law covers some rights -
mostly those to Indonesian citizens - namely rights of ownership (hak milik), building
rights on land (hak guna bangunan), cultivation rights on land (hak guna usaha) and
rights of use (hak pakai).
With the emergence of foreign investment and business in Indonesia, many foreign
investors need buildings or land for their company.
A foreign investor who wants to run their business in Indonesia can obtain building/office
or land under these following rights:
- If you are private person you can buy a properties in Indonesia under this
following right :
Right of Use
This is the right to use and/or harvest from land directly owned by the state (rendered by
authorized official government deed), or private land (by agreement with the owner of the
land). This may be applied to land for use as a building site or for agricultural purposes.
The transfer of this right must have local government authorization.
The Right of Use can be given as met the following term:
- The land is being used for one and other purpose (utilized under the given time);
- Whether given with free of charge or with some charge applied.
- The duration of Right of Use is 30 years, extendible for 20 years maximum.
Who can obtain the Right of Use:
1. Indonesian Citizen (WNI)
2. Foreigners who domiciled in Indonesia
3. Legal entities (such as a PT/limited liability company) established under
Indonesian law and domiciled in Indonesia, either for 100 percent foreign-owned,
joint venture or 100 percent Indonesian-owned companies.
4. Foreign Legal entities which have their representative in Indonesia.
What it require for the Foreigners to obtain the Right of Use:
1. PASSPORT
2. KITTAS(KIM S)