Although Indonesian law does not allow foreign individuals to own land under their own names in Indonesia, there are tried and trusted legal mechanisms by which the foreign purchaser enjoy full beneficial rights to the property.
Of course, Indonesian nationals may own freehold title.
The Government has recently introduced a right of use (“Hak Pakai”) title for foreigners. This title ‘floats’ over a freehold title in the name of an Indonesian citizen and is granted for an initial 25 years term. It can be extended up to three times adding up to a total tenure of 100 years. A foreigner is entitled to only one “Hak Pakai” title for a property not exceeding a certain size. The “Hak Pakai” is transferable or renewable if sold to another foreigner.
