Hak Pakai — Right to Use
Hak Pakai is a personal ownership title available to foreign individuals who hold an Indonesian residency permit (KITAS or KITAP). It grants the right to use land and buildings for residential purposes in your own name.
How it works
The land is converted from freehold (Hak Milik) to Hak Pakai and registered in your personal name at the National Land Agency (BPN). Initial term of 30 years, extendable by 20, then renewable for another 30 — up to 80 years total.
Who it's for
Foreign residents of Indonesia (KITAS or KITAP holders) buying a primary or secondary residence. Not suitable for purely commercial rental operations — Hak Pakai is residential by nature.
Costs & taxes
BPHTB acquisition tax of 5%. Notary and conversion fees ~1.5%. Modest annual PBB land tax. No ongoing corporate compliance costs.
Pros & cons
Pros: personal title in your own name, simple structure, no company needed, secure long-term usage. Cons: requires valid Indonesian residency permit, residential use only, minimum and maximum land area limits apply (typically 200–2,000 m²).