Foreign nationals are not allowed to own land with freehold status in Indonesia. This is regulated under Article 26 paragraph (2) of the Basic Agrarian Law (UUPA), which states:
“Any sale, exchange, grant, bequest, or other legal action intended to directly or indirectly transfer freehold rights to a foreign national, to an Indonesian citizen who also holds foreign citizenship, or to a legal entity (except those specified by the Government under Article 21 paragraph (2)) shall be null and void by law, and the land shall revert to the State, provided that the rights of other parties encumbering it remain valid, and all payments received by the former owner are non-refundable.”
Therefore, the status of land and building ownership that can be granted to foreign nationals or foreign legal entities in Indonesia is limited to the right to use land for a specific period, lease rights for buildings, ownership of strata title units, and residential homes.
Foreign nationals or foreign legal entities are not permitted to hold land with freehold, right to cultivate (HGU), or right to build (HGB) status. If they obtain any of these rights, they must release them within one year; otherwise, the rights will be automatically nullified and the land will revert to the State.
Additionally, there are specific limitations on the ownership of apartment units (strata title) by foreign nationals or legal entities as regulated under Ministerial Regulation of Agrarian Affairs and Spatial Planning/National Land Agency No. 18 of 2021.
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