FAQ Land & Property
FAQ - Land & Property
Frequently Asked Question
There are several conditions that must be met by foreigners to be able to buy property in Indonesia by using the following:
- For foreigners who want to buy property in Indonesia, the government only allows them to buy property with The Right of Building (Hak Guna Bangunan), The Right of Exploitation (Hak Guna Usaha) and The Right of Use (Hak Pakai).
- Having a Kitas (Limited Stay Permit).
- Marrying an Indonesian, the last requirement for a foreigner who wants to buy property in Indonesia is to marry an Indonesian, so that every foreign citizen has the opportunity to buy land in Indonesia.
Investors can buy and own land in Indonesia for a certain period of time by exercising their rights.
- Hak Guna Bangunan (HGB) / The Right of Building (HGB)
- Hak Guna Usaha (HGU) / The Right of Exploitation
- Hak Pakai / The Right of Use
FDI companies that are property developers can buy land in Indonesia to develop a property. The status of the land is HGB which will be divided into small lots accordingly. Then, the property buyer can submit an application to change the status of the land to Ownership Rights (Hak Milik) which is only allowed for Indonesian citizens.
- Before you buy land is not enough just look at the condition of the land but you have to be careful of the status of the land that later serves as a process of building permits and business licenses.
- Due Diligence process such as:
- Checking at the office of the National Land Agency.
- Land ownership and accuracy of the land certificate.
- Special areas of Sustainable Food Agricultural Land (LP2B) must have a principle permit that aims to transfer land functions based on the approval of the National Land Agency.
- To process of permits for the use and utilization of land (IPPT) to change aspects of land, for example if the aspect of plantation land will be changed to the aspect of housing.
- Checking at Licensing and Investment Office.
- Spatial Information to get the result for zoning check to adjust the allocation of space with spatial regulation on land use.
- Knowing what plans the government will do in area where the land is located.
- Land Ownership and Accuracy of the Land Certificate.
- Payment of Taxes.
The first thing you should know is to check the ownership of the land.
As for how to check the authenticity of land certificates, namely:
- Visiting the office of the National Land Agency (BPN) a government agency that has government duties in the land sector.
- Via App Sentuh Tanahku.
- Via page bpn.go.id.
- Request a copy of the Tax Return (SPPT) on land.
- Check the identity of the land owner by asking for a photocopy of the KTP of the land owner to match the name on the land certificate and on the KTP.
PT PMA companies that are property developers can buy land in Indonesia to develop a property. The status of the land is HGB which will be divided into small lots accordingly. Then, the property buyer can submit an application to change the status of the land to Ownership Rights (Hak Milik) which is only allowed for Indonesian citizens.
- The title of the plantation land is HGU for agricultural, fishery or animal husbandry purposes. You may buy and own the land, but the status of the land is state-owned land and the HGU is only valid for a certain period of time.
- The type of plantation crops must be in accordance with the HGU.
- Copy of the applicant’s Identity Card (KTP) which has been legalized by the authorized official
- Copy of proof of payment of Land and Building Tax (PBB) of the last year
- Copy of Family Card (KK) from the applicant
- Copy of Taxpayer Identification Number (NPWP)
- Sale and Purchase Binding Agreement (PPJB)
- The Deed of Sale and Purchase (AJB)
- Income Tax (PPh)
- Proof of payment of payment of Acquisition Duty of Right on Land and Building (BPHTB)
- Come to the Regional National Land Agency (BPN) Office.
- Measurement Process.
- Payment of Registration of Rights Decree.
Actually, the time of making a land certificate depends on the area of the land and the type of land designation.
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