Bali Property

Bali Property Ownership

For those who own property in Bali, Indonesia, you definitely understand that land certificates are divided into three types, namely Freehold Certificate (SHM stand for Setifikat Hak Milik), Right to Build (HGB stand for Hak Guna Bangun), and Right of Use Certificate (Hak Guna Pakai).

The differences between a Hak Pakai and an HGB title can be seen from the party receiving the certificate. The Hak Pakai can be granted to a foreign citizen, either an individual or a legal entity, while the HGB cannot

Speaking of land certificates, do you know, what is the difference between a HGB and Hak Pakai? Well, for those of you who do not know yet, here is a simple explanation:

Right of Use Certificate (Hak Guna Pakai)

This is the right of use over state-owned (crown land) or property owned by public or private persons/entities for a specific purpose for (generally) a finite period.

Hak Pakai has a validity period and may be extended in accordance with applicable regulations.

Hak Pakai can be issued to:

  • Indonesian citizens
  • Foreigners domiciled in Indonesia
  • A foreign legal entity that has a representative in Indonesia
  • A legal entity established under Indonesian law and domiciled in Indonesia
  • Departments, Non-Departmental Government Agencies, and Local Governments
  • Religious and social bodies
  • Representatives of foreign countries and representatives of international bodies.

Hak Pakai Validity Period

Hak Pakai also has a usage time limit, in accordance with Government Regulation (PP) Number 103 of 2015 stating that a Hak Pakai has a validity period of not more than 30 (thirty) years. However, it can be renewed for 20 (twenty) years and then renewable for 30 (thirty) years as agreed with the holder of the land certificate.

Right to Build (HGB)

Right to Build (HGB) is a type of certificate in which the certificate holder is allowed to establish and own buildings on land which is state owned or freehold, with a maximum period of 30 years and can be extended for a maximum period of 20 years. The land can be owned by the state or an individual (Hak Milik).

Just like Hak Pakai, HGB also has a usage time limit, but the difference is, this certificate can be mortgaged for credit applications to financial institutions.

HGB can be issued to:

  • Indonesian citizens
  • A legal entity established under Indonesian law and domiciled in Indonesia

Applicability Period of HGB

Based on Government Regulation (PP) of the Republic of Indonesia Number 40 Year 1996, the validity period of an HGB certificate is 30 years and can be extended for a maximum period of 20 years.

The application for renewal of the Hak Guna Bangunan should be filed no later than two years before the expiration of the the HGB.

Land Status As a Result Of Expired HGB

After the HGB validity period is over, the status of the land is transferred back to the party entitled as the legal owner of the land, either to the State or to the holder of the Hak Milik certificate.

Conclusion

The differences between a Hak Pakai and an HGB title can be seen from the party receiving the certificate. The Hak Pakai can be granted to a foreign citizen, either an individual or a legal entity, while the HGB cannot.

There is also a difference in the validity period of the certificates. A Hak Pakai certificate can be extended for up to 80 years, whilst an HGB is only for 50 years. In addition, the HGB certificate can be mortgaged for credit applications while the Hak Pakai cannot.

Disclaimer:

As we are not qualified legal advisers, we can only provide a general information. For those wanting full legal advice, one needs to get qualified legal advice.

If you wish further information, we recommend that you contact a Lawyer/legal adviser or speak with a notary, who can help to answer any legal questions which you may have.

Certificate rights to build (HGB)

Certificate right to build is a type of certificate whose holder has the right to own and build a building on land that does not belong to the building owner. The land can be in the form of land that is directly controlled by the state, or land that is owned by individuals or legal entities. Certificate rights to Building  has a 30-year ownership period, and can be extended to a 20-year time limit.

According to Article 36 paragraph (1) of the UUPA (Agrarian Basic Law), the right to build can be owned by every citizen and legal entity established under Indonesian law and domiciled in Indonesia.

Freehold Certificate (SHM stand for Setifikat Hak Milik)

Freehold Certificate is a type of certificate whose owner has full rights to ownership of land in an area of a certain area that has been mentioned in the certificate. In contrast to Building Use Rights Certificates which have a certain time limit, Ownership Certificates have no time limit on ownership. This certificate is issued by the National Land Agency.


Biggest price gains according to London-based real estate firm Knight Frank is Jakarta.
The city that had the biggest price increases for luxury real-estate is Jakarta, Indonesia, with prices up 38 percent for prime, luxury real estate. Auckland, New Zealand, ranked second, at 29 percent, while Bali, Indonesia, ranked third, with prices up 22 percent.
At this point Bali and Jakarta are still favorite and considered strongly for those investors to plan property business currently and in the future.

Beach resort land for sale located on white sandy beach of Tanjung Benoa.

More : http://skproperty.org/detailproperty.php?id=69

Boasting approximately 90 meters of spectacular cliff-frontage, this sloping land is rich in rugged natural beauty and enjoys breath-taking Pandawa beach view from all over the site. 

More : http://skproperty.org/detailproperty.php?id=66 


Hunt for tropical island


Caribbean and Maldives are amongs favorite places that hunted by the rich. Island holiday is typicle trend for those celebrities. The most popular rentals are whole islands that can be hired for the exclusive use of a client. In response to this growing demand, island owners ranging from families to celebrities – like business magnate Richard Branson and magician David Copperfield – have put their whole island resorts up for rent. Necker Island in the Caribbean is owned by business magnate Richard Branson among other sample that will be followed by other rich people.


Although in Indonesia has a lot of Islands but only few supported by  good infrasrtucture.  As matter a fact, they are very potential to be developed like in Carribean and Maldive.


In Flores and Batam, there are few tiny island that can be adopted to be world class resort  among other are :


Nirup Island, Batam


It is very seldom that people know Nirup Island which adjacent with main island Batam. Nirup island is very close distance to singapore about a 13 Km approximate distance from the island to Singapore and the distance from the port in Sekupang take 15 minutes. The island is very close to the "Funtasy Island" which is currently under construction of villas and resorts. 


More : http://skproperty.org/detailproperty.php?id=59


Punggu Island, Flores


Punggu Island, Flores, East Nusa Tenggara Island Size 117 hectar,  distance from Bali 314, 84 kilometer, Labuhan Bajo airport Flores -  20 minute ride by speed boat, Komodo National Park – 20 min ride by speed boat It  is an idyllic private island retreat a haven of charm and elegance.  Stunning beaches, amazing coral reefs, intact, perfect for a high end resort/residents.

More : http://skproperty.org/detailproperty.php?id=40

PROPERTY CAN BE SOLD AT ANY TIME AND PRICE CAN FOLLOW MARKET CONDITIONS CHANGED WITHOUT PRIOR NOTICE


We are very happy to help you viewing those properties by appoinement. 


Those are interested in and please contact:


I Gede Sanat Kumara
CALL/SMS : +62 81 238 31444
WA : +62 81 138 91990
Skype : sanat.kumara
Email : sk@skproperty.org Web : www.skproperty.org