Property
Hak Milik for citizens only, with Hak Pakai for foreign residents
The Basic Agrarian Law of 1960 created a hierarchy of land rights in which freehold (Hak Milik) is reserved to Indonesian citizens. Foreigners with residence permits may hold Hak Pakai (right of use), and foreign-invested companies use Hak Guna Bangunan (right to build). Adat (customary) land rights are recognised and coexist with the registered system.
Governing law
- Law No. 5 of 1960 on Basic Agrarian Principles — The foundational land rights hierarchy.
- Government Regulation No. 18 of 2021 — Land rights, including Hak Pakai terms for foreigners.
In practice
Hak Milik (freehold) is available only to Indonesian citizens. Hak Pakai is available to foreign residents, now for terms up to 30 years extendable. Hak Guna Bangunan runs up to 30 years, extendable by 20 and renewable, and is the standard PT PMA right. Adat land held by customary communities is recognised under Article 3 of the Basic Agrarian Law. Nominee arrangements where a citizen holds Hak Milik for a foreigner are void and unenforceable — a recurring source of total loss. Always verify whether land is registered and whether adat claims exist; the two systems overlap in many regions.