Certified Land titles

sertifikat_pronaCertified land titles are governed by The Basic Agrarian Law No. 5 Year 1960. They are registered at the local BPN office. The types of certified titles are as follow:

  • Freehold (“Sertifikat Hak Milik” or “SHM”): This title grants absolute ownership of a plot of land. It is similar to a freehold title. This title is hereditary and may be held only by individuals (Indonesian citizens). Foreigners cannot be granted SHM.
  • Rights to Build (“Sertifikat Hak Guna Bangunan” or “SHGB”): HGB title gives the right to construct and own buildings on a plot of land. The right is transferable and may be encumbered. HGB is the form of ‘freehold title’ that may be owned by Indonesian citizens and legal entities established under the Indonesian Law and domiciled in Indonesia, including foreign-owned companies and joint-venture companies. HGB title is the most common title that foreign companies use to hold real estate in Indonesia.

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