Property Ownership by Foreigners Regulated in Further Detail

The Minister of Agrarian Affairs and Spatial Layout/Head of National Land Agency (“Minister”) has issued Regulation No. 13 of 2016 on Procedures for Granting, Relinquishing and Transferring Ownership of Residential Property for Foreign Citizens Domiciled in Indonesia (“2016 Regulation”).The 2016 Regulation implements Article 11 of Government Regulation No. 103 of 2015 on Ownership of Residential Property by Foreign Citizens Domiciled in Indonesia (“2015 Regulation”), [1] which required further guidelines as regards the regulation of foreign citizens living in Indonesia (“Foreigners”) who are looking to obtain residential property, as well as relinquish or transfer their residential property-ownership rights.Previously, this matter was regulated under Ministerial Regulation No. 7 of 1996 , and amended by Ministerial Regulation No. 8 of 1996 (collectively referred to as the “1996 Regulation”).Obtaining PropertyForeigners who live, work or invest in Indonesia, or who are generally deemed to be of benefit to the country, may now take possession of property under the so-called right-to-use (hak pakai) land title, [2] provided that the Foreigner in question is in possession of a valid residential permit. [3] The 2016 Regulation describes two types of property which may be obtained by Foreigners, namely: [4]