Which title can you hold?
- Hak Milik (SHM) — freehold. Indonesian citizens only. If a listing says SHM, a foreign buyer converts it to Hak Pakai (individual) or HGB (company) at purchase; the seller's SHM is not transferred as-is.
- Hak Pakai — right to use, granted to foreign individuals with a residence permit (KITAS/KITAP). Initial 30 years, extendable 20, renewable 30. Applies to a house or an apartment unit above a minimum price that differs by province (higher in Jakarta and Bali).
- Hak Guna Bangunan (HGB) — right to build, 30 years renewable. Held through a PT PMA (foreign-investment company). The standard route for shophouses, warehouses, factories and industrial land.
- Leasehold — a long lease registered before a notary, usually 25–30 years with an option to extend. Widely used for villas in Bali. You do not own the land; you own the right to use it for the term.
Nominee structures
Registering SHM land in an Indonesian citizen's name with a side agreement that you are the real owner is not protected by Indonesian courts, and the nominee can legally keep the property. A&A Indonesia does not arrange nominee purchases.
Costs to expect
- BPHTB — acquisition tax, 5% of the taxable value, paid by the buyer.
- Notary / PPAT fees — typically 0.5–1% of the price.
- Seller's income tax — 2.5%, paid by the seller.
- Annual PBB — land and building tax, small relative to price.
- PT PMA set-up — if buying through a company: minimum capital and licensing costs, plus annual compliance.
The purchase process
- Shortlist and view (in person or by video call with the agent).
- Notary checks the certificate, PBB receipts and building permit (IMB/PBG).
- Sign the PPJB (preliminary agreement) and pay the deposit.
- Sign the AJB (deed of sale) before the notary/PPAT; pay the balance and taxes.
- The notary registers the new title at the land office (BPN).
This page is general information, not legal advice. Rules change; confirm current requirements with a notary before committing funds.