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BUY AND SELL PROPERTY

Nowadays, many people are interested in investing in property because the value of the property will always increase in the future. Is it advisable to buy and sell a property through an expert?

How to invest in Indonesia?

If you’re considering selling or purchasing property in Indonesia, it’s important to understand how property ownership in the country. In this article, we’ll explore the process of property ownership in Indonesia, including the types of property ownership available and the steps involved in purchasing a property.


Types of Property Ownership in Indonesia

  • Freehold ownership: Freehold ownership, also known as Hak Milik, is the most comprehensive form of ownership in Indonesia. It allows the owner to hold the property indefinitely and to transfer ownership to others through sale or inheritance. Freehold ownership is only available to Indonesian citizens or foreign investors who have obtained the necessary permits.
  • Right of use (Hak Guna Bangunan): Right of use, or Hak Guna Bangunan, is a type of property ownership that allows the owner to use and occupy a property for a specific period of time, typically 25-30 years. At the end of the term, the property must be returned to the original owner or the right of use can be extended. Right of use is available to both Indonesian citizens and foreigners.
  • Leasehold ownership: Leasehold ownership, also known as Hak Sewa, allows the owner to occupy and use a property for a specific period of time, typically 20-25 years. At the end of the term, the property must be returned to the original owner. Leasehold ownership is available to both Indonesian citizens and foreigners.


Investment possibility not only local residents but also foreigners can invest in Indonesia. After the issuance of the Omnibus Law, property ownership for foreigners in Indonesia has become easier. Foreigners can own property in their own name with some provisions or invest through PT PMA or with the right KITAS.

In addition, regarding the limitation of residential ownership status, foreigners can only use Hak Pakai (Rights of Use/Usage Rights) and a Hak Guna Bangunan.


Land Certificate Ownership Process


Due Diligence
The first step when purchasing a property is to conduct due diligence research. This due diligence serves to find out whether the property has a clear legal status and is free from disputes. Work with a reputable agent: It’s a good idea to work with a reputable real estate agent who has experience in the Indonesian market. Our trusted partner, @indonedproperty can help you navigate the process and our legal team will guide you through all the document checks. These steps are checking offline and online resources to search for comparing data properties that meet your budget and desired location, including legally the documents.

PPJB
PPJB stands for Sale and Purchase Binding Agreement, which is a sale and purchase agreement between the seller and the buyer before finally making a deed. Where the status is still limited to an agreement and there has been no legal transfer of property ownership rights. In short, PPJB is the content of the seller’s agreement to bind himself to sell to the buyer.

Sale and Purchase Deed
Once you’re satisfied with the terms of the contract, sign the contract and pay the purchase price. The purchase process is safer and legal by signing a Sale and Purchase Deed (AJB) at the appointed Notary.

Process of Transferring Land Rights
This process is carried out at the National Land Agency in the area concerned.

Indoned Consultancy & Property Team will be happy to assist you with the whole process. It starts from the beginning until the end and finds the best location according to client needs. We will take care of due diligence and other permits needed. So that the buying and selling activities and property investment are easier and guaranteed legal.

Disclaimer

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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