Hak Pakai can be issued to (foreign) individuals, but also to companies, domiciled in Indonesia. Please note, domiciled in Indonesia. Hak Pakai is for people actually living here. It does not mean that you cannot leave Indonesia, or cannot own property in other countries as well. It just means that you spend a considerable time of the year in Indonesia. Hak Pakai is not the same as leasehold. (Hak Sewa).
Leasehold is a notary contract with an owner, and the ownership certificate doesn’t change. (but marked as leased) Hak Pakai is an official certificate issued by the land offices, and can be given for Hak Milik or State owned property. As soon as a Hak Pakai certificate is issued, this certificate has precedent over any other title the property may have. A foreigner can just have one Hak Pakai title on his or her name. The Hak Pakai certificate is valid for an initial 25years, and can be renewed after that. Some companies seem to offer prepaid renewals for up to a total of 100 years.
It’s freely transferable to another name, so you can buy and sell existing Hak Pakai titles. So, if you want property on your own name in Indonesia, and you are planning to live here, use the Hak Pakai arrangement.
It is important to note that for Hak Pakai the property must have an existing building. Bare land is not eligible for sale to foreigners using this title
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