The Application of the Rights
Which status is safe for foreigner to own land?
It depends on the needs. When the purchasers are two people or more the Right to Build On a Land (Hak Guna Bangunan) is the best, but setting up a PMA company is a must, without this one the status is only Right of Use (Hak Pakai). But it will be useful when the land is wide enough to be sub-divided. It is also the best status if the purchaser is a single person. However both statuses are safe for foreigner.
It means that the Hak Pakai or Hak Guna Bangunan may only be applied to the land of the Indonesia citizen with Hak Milik status.
Yes it is, since the Freehold (Hak Milik) is a title given only to Indonesia citizen. The best way to secure your property is by Right of Use (Hak Pakai) or Right to Build On a Land, because with Right of Use (Hak Pakai) or Right to Build On a Land the land owner has released the title to the one.
Should the land owner provide specific document to secure my property?
Yes. You yourself purchase the land in reality. Since the foreigner has no title to the land in Indonesia then the owner’s Freehold (Hak Milik) should be transfer into Right of Use (Hak Pakai) or Right to Build On a Land by several legal mechanisms.
Does the bank accept both rights if I will mortgage the land?
Most banks in Indonesia accept both rights, although there may be some different policy between one and the other.
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