Indonesian Land Title and Registration

Under the Indonesian law number 5 year 1960 regarding the agrarian law, there are certain varieties of land title registration, some of which are The title of rights of ownership, the Indonesian building rights, the Indonesian usage rights, etc. These rights can be given based on certain type of criteria such the land location and the person or the legal entities that applied for such rights.

By definition, the following are the common rights upon land title:

  • The title of building rights is a title granted by the state to construct buildings on land controlled by the state, the title holder can be an Indonesian citizen, a foreign nationals, or local and foreign legal entities and this title will be valid for certain periods of time, such as for the first 30 years and yet it can be extended for another 20 years. In terms that this title has expired (passing the given 50 years), the title holder re-apply for a renewal. The title of building rights holder can use the land for particular purposes, but the land ownership is still owned by the state;
  • The title of cultivation rights is a title given by the state to cultivate particular land with minimum area of 5 acre, this right is used to cultivate land which is directly controlled by the State for a certain period of time, and is used for agricultural, fishery or livestock companies;
  • The title of usage rights, its a title to use and collect proceeds from land, which is directly controlled by the State or the land owned by another person, which gives the authority and obligations specified in the decision or in an agreement with the land owner, which is not a lease agreement. The title of usage can be given to an Indonesian citizens, to a foreign nationals residing in Indonesia, legal entities established under Indonesian law and domiciled in Indonesia, and foreign legal entities having representatives in Indonesia.
  • The title of rights of ownership are the most complete rights, this type of rights can be owned and can be passed to many generations without an expiration date. The rights of ownership is a type of certification where the land owner has full rights upon the land area as stated within the certification document. The certificate of ownership can stand as a tool for buying and selling transactions, as well as credit guarantees;

There are other forms of land title under Indonesian agrarian law, the above are the most commonly requested for individuals residing in Indonesia, to apply for any of those title some documentations are required to be shown to the authority prior granting the particular rights required by the applicant.