# Indonesia Property Glossary (2026): Hak Milik, Hak Pakai, PT PMA

> Plain-English glossary of Indonesian property terms for foreign buyers: Hak Milik, Hak Sewa, Hak Pakai, HGB, PT PMA, PPAT, BPN, PBG, SLF, PBB and more.

URL: https://ecobeachcity.com/tools/indonesia-property-glossary
Last reviewed: 2026-10-11
Publisher: Eco Beach City (https://ecobeachcity.com)

## Terms

- **Hak Milik (SHM)**: Freehold: full, permanent ownership of land. Only Indonesian citizens can hold it.
- **Hak Sewa**: Leasehold: the right to use land or a building for an agreed term under a lease contract with the owner, usually 20–30 years and extendable by agreement. Open to foreigners.
- **Hak Pakai**: Right of use: a registered title a foreigner with a residence permit can hold for a house or apartment, for 30 years, extendable by 20 and renewable by 30.
- **Hak Guna Bangunan (HGB, SHGB)**: Right to build: the title a company, including a PT PMA, holds to own buildings on land, for 30 + 20 + 30 years.
- **PT PMA**: Penanaman Modal Asing: an Indonesian limited company with foreign shareholders. It needs IDR 10 billion of planned investment, IDR 2.5 billion paid up (BKPM Regulation 5/2025).
- **Nominee arrangement**: Holding land in an Indonesian's name on behalf of a foreigner. Such agreements are void under Article 33 of Law 25/2007.
- **KITAS / KITAP**: Temporary (KITAS) and permanent (KITAP) residence permits. Needed for a foreigner to hold Hak Pakai.
- **Notaris / PPAT**: Notary / land deed official. A PPAT is the notary authorised to make land deeds; leases are signed before a notary.
- **BPN**: Badan Pertanahan Nasional, the national land agency (land office) that registers titles and checks certificates.
- **Cek sertifikat**: A check at the land office that shows whether a certificate is genuine and free of mortgages, blocks or disputes.
- **Surat ukur**: The survey map of a plot, with its boundaries and size in square metres.
- **RDTR / KKPR**: The detailed spatial plan (RDTR) and the spatial-use approval (KKPR or PKKPR) that say what may be built on a plot.
- **PBG**: Persetujuan Bangunan Gedung, the building permit that replaced the IMB in 2021.
- **SLF**: Sertifikat Laik Fungsi, the certificate that a finished building is fit to be used.
- **PBB / NJOP**: PBB is the yearly land and building tax, charged at 0.1–0.5% of the NJOP, the government's assessed value.
- **BPHTB**: Tax on acquiring land or building rights (usually 5%), paid on purchases of titles; not paid by a lessee on a leasehold.
- **Are**: Land unit used in Indonesian listings: 1 are = 100 m².
- **NIB**: Nomor Induk Berusaha, the business registration number issued through the OSS system.

## Sources

- [Cekindo · Buy a house in Indonesia](https://www.cekindo.com/blog/buy-a-house-in-indonesia)
- [Emerhub · Leasehold property in Bali](https://emerhub.com/bali/leasing-property/)
- [Bali Property Rules · What foreigners pay](https://balipropertyrules.com/guides/bali-property-costs-foreigners/)

General information, not legal, tax or financial advice. Eco Beach City sells land and homes in Sumba, Indonesia, from €6,500 (land).