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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.
Surat Hak Milik (SHM) / Surat Hak Guna Bangunan (SHGB)
Lifetime, or until it’s sold to a new owner
Indonesian individual only or foreigner who has a company in Indonesia (PMA) to buy the property under that company’s name
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.
Akta Sewa / Right to use – Right to rent
Average 20-30 years, with possible extension. Maximum 99 years
All people including Indonesian and foreigner with KITAS-Visa status