[HeatguyAlvin]

Originally Posted by retirebatam

Ever since Jokowi took over office, there were changes to the rules facilitating foreign ownership of property. This is an important step for foreign investors to gain confidence in the Indonesian property market which can help boost the economy.

From my understanding, Indonesian owner buy Indonesia property fall under two categories:

1) Hak Milik (right to own) which is a freehold title that can be bought, sold or mortgaged by an Indonesian citizen and do not need to be extended.

2) Hak Guna Bagunan (right to build) which is the right to use a building for a certain period of time and then has to be extended. The owner of Hak Guna Bagunan land is the Indonesian government. Under this, the Indonesian national has the right to construct a building on a plot of land for a period of 25 years and subject to subsequent renewal by applying to the National Land Agency.

On the other hand, foreigners are currently able to buy Indonesia property under the following ways:

1) Hak Pakai (right to use) which is the right to purchase an apartment with strata title within an apartment block that is on state land. The foreigner owner must renew their right to use. The initial Hak Pakai period is for 25 years, then is renewed for an additional 25 years and finally a 20 years period. (maximum 70 years) (leasehold)

2) Purchase of a house on freehold land by written consent from the Indonesian landowner. This is for 25 years and extendable for another 25 years. (maximum 50 years)

3) Purchase of a freehold property by a nominee Indonesian national who would own the freehold title but signs over power of attorney and other legal rights.
(the indonesian national cannot sell the property without the consent of the foreigner)

this is correct as of now.