HMPLawofccie.com – Jogja Lawyer’s Office – Land ownership rules for foreign nationals is legally prohibited in Indonesia. This is in accordance with Article 23 paragraph (3) of the Basic Agrarian Law which states that “foreigners who after the entry into force of this Law acquire property rights due to inheritance without a will or mixing of property due to marriage, as well as Indonesian citizens who have property rights and after the entry into force of this law lose their citizenship must relinquish that right within one year of the acquisition of such right or loss of citizenship that. If a period of time is past that the property is not relinquished, then the right is removed because the law and land fall to the state, provided that the rights of others who encumber it continue. – Lawyer Indonesia / Lawyer / Law Office Indonesia / Advocate / Lawyer Office / Lawyer
In addition, the land ownership rules for foreigne, the state can take over ownership rights to land if foreigners obtain ownership rights to the land because based on the provisions of Article 26 paragraph (2) of the UUPA states that “Any sale, exchange, grant, gift by will and other deeds intended to directly or indirectly transfer property rights to foreigners, to a citizen who in addition to his Indonesian citizenship has foreign nationality or to a legal entities, except those stipulated by the Government referred to in article 21 paragraph (2), are void because the law and land fall to the State, provided that the rights of other parties encumbering it continue and all payments that have been received by the owner cannot be reclaimed. – Lawyer / Advocate / Law Firm Indonesia / Indonesian Lawyer
Therefore, foreign nationals are only allowed to manage land in Indonesia with the status of Right to Use Business (HGU), Right to Build (HGB), Right to Use, Right to Rent, and Right of Ownership of Flats. Right to Use Itself (HGU) itself is the right to cultivate land directly controlled by the State for a maximum period of 25 years, for companies to be given more rights, which is a maximum of 35 years and both can be extended again for a maximum of 25 years, (Article 29 UUPA).
Read More : Procedure Limited Stay Visa (VITAS) Working in Indonesia
Furthermore, foreigners in this case if they want to get an HGU permit must have a company that is a legal entity in the form of a PT (Terbata Company). In addition, HGB is the right to build and own buildings on land that is not its own, with a maximum period of 30 years. Article 36 paragraph (1) of the UUPA states that those who can have the right to use buildings are Indonesian citizens and legal entities established under Indonesian law and domiciled in Indonesia. HGB itself can also be extended for a maximum of 20 years, Article 35 paragraph (2). – Lawyer Jogja / Lawyer Jogja / Jogja Lawyer Office
Right of Use, on the other hand, is the right to use and/or collect proceeds from land directly controlled by the State or land belonging to another person, which gives the authority and obligation specified in the decision of its grant by the official authorized to grant it or in an agreement with the owner of the land, which is not a lease agreement or land cultivation agreement, everything provided that it does not contradict the spirit and provisions of this Law.” Parties who can have the right to use are Indonesian citizens, foreigners domiciled in Indonesia, legal entities established under Indonesian law and domiciled in Indonesia, foreign legal entities that have representation in Indonesia, Article 42 of the UUPA. – Advocate Jogja / Lawyer / Advocate Yogyakarta / Jogja law firm
Foreign nationals can also use the leasehold as an alternative if they want to settle or do business in Indonesia. In accordance with Article 45 of the UUPA states that those who can become leaseholders are Indonesian citizens, foreigners domiciled in Indonesia, legal entities established under Indonesian law and domiciled in Indonesia and foreign legal entities that have representation in Indonesia. The lease thing here is that foreigners can enter into a lease agreement with the land owner on the basis of the agreement of both parties. – Lawyer / Law Firm / Law Office / Advocate / Lawyer / Lawyer Office
Finally, Ownership Rights over Flats, foreigners can have the right to flats if they have a stay permit in Indonesia, a foreign legal entity that has representation in Indonesia or representatives of foreign countries and international institutions located in Indonesia.
Based on the provisions of Article 144 paragraph (1) of Law No. 6 of 2023 concerning the Determination of the Job Creation Perpu, it is explained that those who can have property rights over apartment units are Indonesian citizens, Indonesian legal entities, foreign nationals who have permits in accordance with the provisions of laws and regulations, foreign legal entities that have representatives in Indonesia, or representatives of foreign countries and international institutions located or have representatives in Indonesia. Land ownership rules for foreign – HMP & Associates Law Office
Incorporate with HMP Consulting