Hak Pakai
Also called right to use
Hak Pakai is the right to use and benefit from land, and it is the one land title a foreign individual can hold personally in Indonesia, provided they hold a valid residence permit and use it for residential purposes.
Hak Pakai lets you use land you do not own the freehold of. Unlike Hak Milik, a foreigner can hold it directly, which makes it the usual route for someone who lives in Indonesia and wants a home in their own name rather than through a company.
The conditions are real. It requires a valid residence permit, KITAS or KITAP. It is for residential use, not for running a commercial rental business. There is a size cap for landed housing, commonly cited at 2,000 square metres. The duration follows a similar pattern to HGB: an initial term with renewals available, up to a total in the region of 80 years.
It suits a foreign resident building a home to live in. It is a poor fit for an investor building villas to rent commercially, which is what pushes most investment projects towards a PT PMA instead.
Where people get caught
Using a Hak Pakai residential title for a commercial short-let operation. It is a residential right, and running a rental business on it is the sort of mismatch that surfaces at exactly the wrong moment, usually when you sell or when licensing is checked.
Where this comes up
This is general information, not legal advice. Indonesian property law changes, and how it applies depends on your situation, your visa status and the specific plot. Always take advice from a qualified notaris before you commit money. Last checked 2026-07-30.