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Freehold
Type

Type of property ownership dedicated for local investors or foreigners under legal cooperation in Indonesia. The freeholder of a property owns it outright, including the land it is built on. If you buy freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs and taxes.

certificate

Surat Hak Milik (SHM) / Surat Hak Guna Bangunan (SHGB)

term

Lifetime, or until it’s sold to a new owner

owner status

Indonesian individual only or foreigner who has a company in Indonesia (PMA) to buy the property under that company’s name

Leasehold

Type

Type of property ownership for foreign investors who are willing to purchase the property as an individual. With leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless the contract states guaranteed lease extension at future market price.

certificate

Akta Sewa / Right to use – Right to rent

term

Average 20-30 years, with possible extension. Maximum 99 years

owner status

All people including Indonesian and foreigner with KITAS-Visa status