by Dayu
The Indonesian culture and Government make use of a distinct variety of property titles that is used to distinct the ownership rights and the title of properties as well as their applications.
Indonesian Land Titles
Below is a list of Indonesian Land Titles that reflect the forms of legal land titles as regulated by the Indonesian government:
Hak Milik — equivalent to Freehold title
Hak Guna Usaha — Cultivation Rights Title
Hak Guna Bangunan — Building Rights Title
Hak Pakai — Right to Use Title
Hak Sewa untuk Bangunan — Right to Rent for Buildings
Hak Membuka Tanah — Land Clearing Rights
Memungut Hasil Hutan — Forestry Rights
Hak Guna air, Pemeliharaan & PenangkapanIkan — Water Use and Fisheries Rights
Hak Guna Ruang Angkasa — Airspace Use Rights
Hak-hak Tanah untuk Keperluan Suci & Sosial — Land Title for Social & Religious Purposes
For our foreign investors, the most common titles that are usually attached to the properties they have shown interest in and their investments and properties include:
Freehold Title (SHM or Sertifikat HakMilik)
This title grants absolute ownership of a land plot and represents the freehold title in Indonesia. This title is hereditary and can be held only by individuals of Indonesian decent. Foreigners are not allowed to access to this title (“SHM”) under their own name.
Rights to Build Title (HGB or Sertifikat HakGunaBangunan)
Right to Use Title (HP or Sertifikat HakPakai)
Other property language abbreviations
HM : Hak Milik or Freehold Title
HGB : Hak Guna Bangunan or Right to Build
IMB : IjinMendirikanBangunan or Building Construction Permit
BPN : Badan Pertanahan Negara or National Land Office
BKPM : Badan Koordinasi Penanaman Modal or Capital Investment Coordinating Board
PPN : Pajak Pertambahan Nilai or Value Added Tax (VAT)
PMA : Penanaman Modal Asing or Foreign Investment Company also called PT PMA
AJB : Akta Jual Beli or Sale and Purchase Deed
PPAT : Pejabat Pembuat Akta Tanah or Land Deed Official
