Find out more about buying land or villa in Indonesia for you as foreigner. In this section we will describe about all title for having land or villa in Indonesia, the legality of your invesment, and solution for foreigner to have land, villa, or house in Indonesia.
There are a number of different types of title in Indonesia. Hak Milik (the type of title that resembles freehold title in Australia) can only be held by an Indonesian citizen. Hak Pakai (essentially leasehold title) and other forms of title can be held by a P.T. Company or a P.M.A. Company (Foreign owned investment company) such a Hak Guna Bangunan (HGB).
A non-Indonesian citizen cannot own land in Indonesia. However a foreigner can acquire a leasehold title to a building - almost the same as a strata title except that the title lasts only for 25 years with an extension of 30 years for a maximum of 55 years and then reverts to the original owner (Lessor).
There are a number of ways you can safeguard your investment decision. It is important that you understand clearly what documents are being used in the transaction. You should ask for translations of any agreements to be made and if you do not understand the terms of the agreement seek advice.
Prior to your purchase whether leasehold or freehold, have a due diligence exercise carried out by your lawyer. A thorough due diligence will cover whether or not the title is genuine, that taxes have been paid, zoning is suitable, amongst other matters.
For lease hold properties ask to review the lease before you attend the Notary.
Should you use an Indonesian citizen to hold your interest you need to ensure that you have clear agreement with them that documents the contractual nature of your relationship.