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Indonesian Government Regulations regarding property titles


Amendment to the Regulation of The State Minister of Agrarian Affairs/Chairman of the National Land Agency No 7/1996.

"Foreigners may purchase the Right of Utilization (Hak Guna Bangunan) over land with the Right of Proprietorship (Hak Milik) from the Holder of said Right of Utilization along with houses or purchase the Right Utilization and later contract houses on it. The purchase of the Right of Utilization shall be conducted pursuant to the effective stipulations that are, by virtue of a deed made by land conveyance, which shall later be registered in the Land Office. Likewise, the requirements or construction of houses must abide by the prevailing stipulations, for example with respect to the Building Construction Permit (IMB)."

Foreigners may own a house and obtain the title on land by means of the following:

  • Purchasing or contracting a house on land with the right utilization with the right proprietorship.
  • Purchasing an apartment unit contracted on land with the right of utilization over state land.
  • Purchasing or contracting a house on land with the right of Proprietorship or the Right of Lease over building on the basis of a written agreement with the owner of the land title concerned.

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