Thinking about relocation to Indonesia? Maybe you would like to get a Second Home Visa and buy a property here? Then this post is will be helpful for you.
We have prepared a short guide about Hak Pakai (Right To Use): what it is and who is eligible to receive it.
In Indonesia, “Hak Pakai” or “Right to Use” is a type of land ownership that grants a person or an entity the right to use and benefit from a plot of land for a certain period of time, typically up to 25 or 30 years, with the possibility of extension.
The Hak Pakai can only be granted for certain purposes, such as for investment, business, or other activities that support national development.
Hak Pakai is one of several types of land ownership in Indonesia, including Hak Milik (Ownership Right), Hak Guna Bangunan (Right to Build), and Hak Guna Usaha (Right to Cultivate or Exploit).
Hak Pakai is the right for using and/or harvesting products of
– land which is directly controlled by State, which the authority and obligations are given by the authorized officials, or
– land belongs to another person in an agreement with the owner of the land, which is not a lease agreement or land management agreement
Besides that, Hak Ppakai can also be granted to land with the right to manage, which is granted by a decision of the Minister of Agrarian Affairs and Spatial Planning/National Land Agency or officials appointed based on the proposal of the holder of the right to manage
The government of Indonesia is the ultimate owner of all land in the country, and all land ownership is subject to certain regulations and restrictions.
The right to manage itself is the right of state control, where the authority of implementation is partly delegated to the holder.
Hak Pakai on land of ownership is granted for a maximum period of 30 years and can be renewed by making a deed of granting of Hak Pakai on land with right of ownership in Land Deed Official (PPAT)
Hak Pakai on State Land and Right to manage land are granted for a maximum period of 30 years, can be extended for a maximum period of 20 years, and can be renewed for a maximum period of 30 years
According to the article 51 in Government Regulations PP 18/2021, the land that can be granted Right to use (Hak Pakai) are:
Indonesian citizens, ITAS holders (such as Second Home ITAS)*, legal entitles established under Indonesian law and having its address in Indonesia; foreign legal entitles that have representative in Indonesia.
*The maximum period of Hak Pakai for foreigners is usually 30 years and can be extended for an additional 20 years.
Individuals or organizations seeking to obtain Hak Pakai must meet certain requirements, such as proving that they have a legitimate business or development plan, and that their activities will benefit the local community and the country as a whole.
