‘Relaxed’ Foreign Ownership Laws on Real Estate

Overhaul by Omnibus law looks good until you read the fine print; restrictions still abound for potential foreign buyers.

The Omnibus law has made the largest changes to Indonesia’s property laws in the last 20 years. With one of the most confusing a nd convoluted property laws in the world, this is a welcome development for foreign buyers who will hence find it easier to navigate through the murky procedures.

The law, under Government Regulation (GR) 18/2021 amends the principal land rights/titles that cover:

  • Right to manage (Hak Pengelolaan, HPL);
  • Right to cultivate (Hak Guna Usaha, HGU);
  • Right to use (Hak Pakai, HP);
  • Right to build (Hak Guna Bangunan, HGB)
  • Right of ownership over stacked units (Hak Milik Atas Satuan Rumah Susun, HMSRS);
  • Rights for underground and overground space; and
  • Land registration.

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