Property ownership is a crucial aspect of real estate, and in Indonesia, it is governed by a variety of land titles and certificates. These legal documents play a pivotal role in establishing ownership rights, providing security, and facilitating transactions. In this article, we will delve into seven important land titles and certificates for property ownership in Indonesia.
Hak Milik (Right of Ownership)
Hak Milik is the highest form of land ownership in Indonesia, granting the holder complete and exclusive rights over the land. This title is often held for residential or commercial purposes and is evidenced by a certificate called “Sertifikat Hak Milik.” The owner has the right to use, lease, and transfer the property.
Hak Guna Bangunan (Right to Build)
Hak Guna Bangunan (HGB) is a land title that allows individuals or entities to build structures on land owned by the government or private parties. HGB holders have the right to use the land for the period stipulated in accordance with Article 37 paragraph (1) PP 18/2021.
• Max. Lease term: 30 years
• Max. Extension term: 20 years
• Max. Renewal period: 30 years
A certificate known as a “Building Rights Certificate” is issued as proof of this right.
Hak Pakai (Right of Use)
Hak Pakai is a land title that grants the holder the right to use and exploit state-owned land. This title is commonly used for agricultural or residential purposes. The certificate issued for Hak Pakai is called “Sertifikat Hak Pakai.” It provides a more limited form of ownership compared to Hak Milik.
Hak Pengelolaan (Management Right)
Hak Pengelolaan is a land title that allows the holder to manage and utilize state-owned land for specific purposes, such as tourism or industrial activities. The certificate for Hak Pengelolaan is known as “Sertifikat Hak Pengelolaan.”
Hak Guna Usaha (Right to Cultivate)
Hak Guna Usaha (HGU) is a land title that grants the holder the right to cultivate state-owned land for agricultural purposes. The HGU holder can utilize the land for planting crops or establishing plantations. The corresponding certificate is “Sertifikat Hak Guna Usaha.”
Hak Sewa (Leasehold Right)
Hak Sewa is a leasehold right that allows individuals or entities to lease land for a specific period. This title is commonly used for temporary land use, such as for construction projects. The certificate for Hak Sewa is referred to as “Sertifikat Hak Sewa.”
Sertifikat Hak Tanggungan (Mortgage Certificate)
Sertifikat Hak Tanggungan is a certificate that represents a mortgage or lien on a property. It is often used as collateral for loans, providing security for lenders. The certificate indicates the existence of a mortgage on the property and is released upon the full repayment of the loan.
Conclusion:
Understanding the various land titles and certificates in Indonesia is crucial for anyone involved in property transactions or ownership. Whether you are a buyer, seller, or investor, being aware of these titles ensures a smooth and legally sound real estate experience in the Indonesian context. Always seek professional advice and legal guidance when dealing with property matters to ensure compliance with local regulations and to safeguard your interests.
