The real estate law in Indonesia is mainly governed in the Law No. 5 of 1960 on Principle Provisions of Agrarian (the “Agrarian Law”).

Right of Land

Under Agrarian Law, there are certain types of land, among others that are related in this regard are as follows:

1. Right to Own (Hak Milik);
2. Right to Build (Hak Guna Bangunan); Read the rest of this entry »

Indonesia as a developing country is one of the investment destination for developed countries to expand their global business activities. That is why more foreigners domiciled in Indonesia to do their business. However, there are boundaries or conditions for foreigner to own a residence especially a strata title, which is going to be discuss further here.

Condominium can only be built upon land with titles of rights to own (hak milik), rights to build (hak guna bangunan), and right to use of government land (hak pakai atas tanah negara) or right to manage (hak pengelolaan) according to Article 7 paragraph (1) Law No. 16 of 1985 about Condominium (the “Law of Condominium”) and Article 38 paragraph (1) Goverment Regulation No. 14 of 1988 about Condominium (“GR No. 14 of 1988”). Read the rest of this entry »