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Yes, foreign citizens can own an apartment above the SHM title. Below is all the information you need to know related to foreigners’ land ownership in Indonesia.
There are some restrictions for foreign citizens to own land in Indonesian territory. Based on Law No. 5 of 1960 concerning the Basic Provisions concerning the Fundamentals of Agrarian Affairs (“Law 5/1960”) the restrictions are made to protect the state and its citizens’ interest by saying all the earth, water, and airspace, including the natural resources contained therein constitute as nation’s wealth and used for national welfare. Since the state manages the land, the Indonesian and foreign citizens have to submit a request to become landowners. There are rights and responsibilities for right holders, including having economic rights for the land with the responsibilities to use the land properly.
Indonesia issued several types of land titles, such as Right of Ownership (Sertifikat Hak Milik “SHM”), Right to Build (Hak Guna Bangunan/”HGB”), Right to Cultivate (Hak Guna Usaha /”HGU”), Right to Used (“Hak Pakai”) and Right to Lease (“Hak Sewa”), with SHM as the strongest title. Indonesia’s land system has adopted the negative publicity system with positive elements; therefore, while strong, the certificate is not absolute evidence of land ownership. All types of the above land title may be…