Navigating the intricacies of land and property ownership in Indonesia demands specialised legal expertise, particularly for foreign investors. Indonesia’s agrarian laws are unique, and a thorough understanding is paramount to securing legitimate and valuable property investments. At Malekat Hukum, our Real Estate & Property Law service provides comprehensive guidance, from meticulous due diligence and agreement drafting to advising on foreign ownership structures, facilitating leasing, and resolving disputes, ensuring your investments are secure and compliant.

We offer end-to-end legal support across the entire spectrum of real estate transactions, safeguarding your interests at every stage:

• Comprehensive Legal Due Diligence: This is the cornerstone of any secure property investment. Our team conducts exhaustive investigations into property titles, verifying their authenticity, ownership history, and any existing encumbrances (such as mortgages or liens). We meticulously review land certificates, conduct physical site inspections (where appropriate), and scrutinise zoning regulations (Rencana Tata Ruang Wilayah – RTRW) and land use permits (Izin Pemanfaatan Ruang – IPR) to identify any potential legal risks or limitations before you commit.
  
   
• Strategic Foreign Ownership Structures: Understanding the nuances of foreign ownership in Indonesia is crucial. We provide expert advice on the permissible legal mechanisms for foreign individuals and entities to hold property rights, which typically include:
  
  • Hak Pakai (Right to Use): A common right for foreign individuals, allowing use of land for residential purposes for a specific term (e.g., 30 years, extendable).
  • Hak Guna Bangunan (HGB – Right to Build): Predominantly for companies (including PT PMA), granting the right to construct and own buildings on state-owned land or land with Hak Pengelolaan for a specific term (e.g., 30 years, extendable).
  • Hak Sewa (Leasehold): Advising on and drafting long-term lease agreements with Indonesian landowners.
  • Indirect Ownership via PT PMA: Guiding the establishment of foreign investment companies (PT PMA) to hold relevant land rights like HGB or Hak Guna Usaha (HGU) for business operations.
  • Crucially, we provide stringent advice to avoid illegal nominee arrangements, ensuring your ownership structure is transparent, legitimate, and fully protected under Indonesian law.
• Agreement Drafting & Negotiation: We expertly prepare, review, and negotiate all types of property-related agreements, including Conditional Sale and Purchase Agreements (PPJB), Sale and Purchase Deeds (Akta Jual Beli – AJB) executed before a Land Deed Official (PPAT), Lease Agreements (Perjanjian Sewa Menyewa), and agreements related to security over land.
• Permits & Licensing: We assist with securing all necessary permits for your property development or use, including Building Approval (Persetujuan Bangunan Gedung – PBG, formerly IMB), and other relevant land use permits.
• Registration & Transfer of Title: We facilitate the smooth and compliant registration of property rights and the transfer of titles at the National Land Agency (Badan Pertanahan Nasional – BPN), ensuring legal certainty of your ownership.
• Dispute Resolution: Should property disputes arise, whether related to land titles, boundaries, landlord-tenant issues, or contractual disagreements, we provide robust legal representation and strategic advice to achieve an effective resolution.

By partnering with Malekat Hukum, you gain a trusted legal advisor committed to securing your real estate and property investments in Indonesia, mitigating risks, ensuring compliance, and providing complete peace of mind throughout your venture.

For comprehensive details on our Real Estate & Property Law services or to discuss your specific property investment plans, please read more, or get in touch with us for a consultation.

Indonesia’s stunning landscapes and burgeoning economy make it an attractive destination for foreign property investors.However, acquiring property as a non-national in Indonesia involves navigating intricate legal pathways that differ significantly from many other jurisdictions. At Malekat Hukum, we offer expert guidance on these complex regulations,ensuring your property acquisition is structured legitimately, securely, and in full compliance with Indonesian law.

Direct “freehold” ownership (Hak Milik) is reserved exclusively for Indonesian citizens. Nonetheless, foreign nationals can secure significant, long-term property rights through legally recognised structures. We guide you through the most suitable options:

• Hak Pakai (Right to Use): This is the most common and direct pathway for foreign individuals (often those with valid KITAS, KITAP, or Second Home Visas) seeking to acquire property for residential purposes. Hak Pakai grants the right to use and benefit from land and any structures on it for an initial period of up to 30 years, extendable for 20 years, and renewable for another 30 years (a total potential term of 80 years). We assist in verifying the property’s eligibility for Hak Pakai and facilitate the title transfer process.
• Hak Guna Bangunan (HGB – Right to Build) through a PT PMA: For foreign investors looking to develop or utilise property for commercial purposes, or to hold significant land rights for long-term investment, establishing a PT PMA (Penanaman Modal Asing – Foreign Investment Company) is often the preferred and most robust structure. The PT PMA holds the HGB title, granting the right to construct and own buildings on state-owned land or Hak Pengelolaan (Right to Manage) land for an initial 30 years, extendable for 20 years, and renewable for another 30 years (total 80 years). We provide end-to-end support for PT PMA establishment and subsequent HGB acquisition.
• Hak Sewa (Right to Lease/Rent): This involves a long-term lease agreement from an Indonesian landowner (who holds Hak Milik). While not an ownership right, Hak Sewa provides exclusive use of the property for a defined period, typically ranging from 25 to 30 years, often with options for extension. This can be a straightforward solution for residential or business use without forming a company.

Our Comprehensive Support for Your Property Acquisition:

Our service is built on meticulous due diligence and strategic legal structuring:

• Initial Consultation & Strategy: We begin by understanding your specific investment goals, advising on the most appropriate and compliant legal structure based on your nationality, residency status, and intended property use.
• Rigorous Legal Due Diligence: We conduct thorough investigations into the property’s title, ownership history,zoning regulations, building permits, and any potential encumbrances or disputes. This critical step safeguards your investment against future legal complications.
• Secure Agreement Drafting & Negotiation: We prepare and review all necessary legal documents, including Conditional Sale and Purchase Agreements (PPJB), Sale and Purchase Deeds (AJB), Lease Agreements (Perjanjian Sewa Menyewa), and any corporate documents required for PT PMA formation and share acquisition.
• Entity Establishment & Licensing (for PT PMA): If the PT PMA route is chosen, we provide full assistance with company registration, obtaining relevant business licences, and ensuring the entity is legally compliant to hold property rights.
• Seamless Registration & Transfer: We manage the entire process of registering the property rights and transferring titles at the National Land Agency (Badan Pertanahan Nasional – BPN), ensuring all procedures are followed diligently.
• Tax Advisory: We offer guidance on applicable property-related taxes, including Property Transfer Tax (BPHTB),annual Land and Building Tax (PBB), and income tax considerations for rental income.
• Avoiding Risks: Crucially, we provide stringent advice against the use of illegal and precarious nominee arrangements, ensuring your property acquisition is transparent, legitimate, and fully protected under Indonesian law.

By choosing Malekat Hukum, foreign buyers gain the confidence and legal certainty required to make secure and prosperous property investments in Indonesia. We are dedicated to transforming the complexities of foreign property acquisition into a clear and successful pathway.

For comprehensive details on our “Buying Property as a Foreigner” services or to discuss your property investment aspirations in Indonesia, please read more, or get in touch with us for a consultation.

While establishing a foreign-owned venture in Indonesia marks a significant milestone, its sustained success hinges on a robust and compliant operational framework. At Malekat Hukum, our Foreign Ownership Arrangements service extends beyond initial setup, focusing on crafting and maintaining the intricate legal architecture that governs your day-to-day operations, internal management, and strategic collaborations. We ensure your foreign-owned enterprise operates legitimately, efficiently, and with swift pathways for dispute resolution.

We specialise in providing ongoing legal support that optimises the functionality and compliance of your foreign investment (typically a PT PMA – Foreign Investment Company), safeguarding its long-term interests:

• Operational & Commercial Agreements: We draft, review, and negotiate a comprehensive suite of agreements essential for your venture’s ongoing operations. This includes supply chain contracts, manufacturing agreements, service level agreements (SLAs) with vendors, distribution agreements, and specific operational contracts for joint ventures. Our meticulous approach ensures these agreements are legally sound under Indonesian law, mitigating commercial risks and fostering clear business relationships.
• Management & Corporate Governance Frameworks: Robust internal governance is paramount for foreign-owned entities. We assist in structuring and formalising your corporate management, advising on the composition and responsibilities of the Board of Directors and Commissioners, and drafting essential Shareholder Agreements (SHAs). These SHAs are critical for defining shareholder rights, decision-making processes, dispute mechanisms, and succession planning, particularly vital in joint venture scenarios. We also support with the drafting of internal company regulations and board resolutions to ensure compliant corporate actions.
• Licensing & Technology Transfer Agreements: For foreign ventures reliant on intellectual property or technology from their parent company or third parties, we provide expert guidance on licensing arrangements. This includes drafting and negotiating inbound and outbound intellectual property licensing agreements (for trademarks, patents, technology, or know-how), and facilitating technology transfer agreements, ensuring adherence to Indonesian IP laws and regulatory registration requirements.
• Ongoing Regulatory Compliance: The Indonesian regulatory landscape is dynamic. Our service includes continuous monitoring of relevant legal changes affecting your sector, labour practices, taxation, and general corporate compliance. We provide proactive advice on necessary adjustments, assist with mandatory corporate secretarial filings (e.g., annual reports to the Ministry of Law and Human Rights and BKPM LKPM reports), and guide on best practices for data privacy and anti-bribery regulations, ensuring your venture remains in good standing.
• Strategic Dispute Resolution: We embed clear dispute resolution mechanisms within your operational and governance agreements, aiming to prevent conflicts. Should disputes arise – whether internal (shareholder, management) or external (commercial, regulatory) – we offer strategic advice on negotiation, mediation, and, if necessary, provide robust legal representation in commercial litigation or arbitration proceedings to achieve swift and effective resolution.

By partnering with Malekat Hukum for your Foreign Ownership Arrangements, you secure not just legal documents, but a robust and adaptable legal framework that empowers your foreign-owned venture to operate with clarity, compliance, and confidence in Indonesia.

For comprehensive details on our Foreign Ownership Arrangements services or to discuss the ongoing legal needs of your foreign-owned venture, please read more, or get in touch with us for a consultation.

In the dynamic landscape of Indonesian commerce, the acquisition or divestment of a business represents a pivotal strategic manoeuvre, offering pathways for significant growth, market consolidation, or focused restructuring. These transactions, however, are inherently intricate, demanding meticulous legal expertise to navigate complexities and ensure a seamless, compliant transition. At Malekat Hukum, we provide comprehensive guidance through every stage of Business Acquisition & Transfer, safeguarding your interests and optimising outcomes.

Our dedicated legal team offers end-to-end support for both buyers and sellers, ensuring clarity, compliance, and efficiency throughout the entire transaction lifecycle:

• Comprehensive Legal Due Diligence: This is the foundational step in any successful acquisition or divestment. We conduct exhaustive legal due diligence on the target entity or the divested assets, meticulously scrutinising contracts, assets, liabilities, intellectual property portfolios, litigation history, permits, licences, and regulatory compliance status. Our thorough investigation identifies all material risks, potential liabilities, and hidden opportunities, providing you with a complete and accurate picture before commitment.
• Strategic Transaction Structuring: We provide expert advice on designing the most advantageous legal and tax structure for your transaction. Whether you are pursuing a share purchase, an asset purchase, a merger, a joint venture, or a complete divestment, our counsel aims to optimise value, minimise liabilities, and ensure the structure aligns perfectly with your overarching strategic objectives.
• Robust Agreement Drafting & Negotiation: Our team excels in drafting, reviewing, and negotiating all necessary legal documentation for the transaction. This includes complex Sale and Purchase Agreements (SPAs), Shareholders’ Agreements, Asset Transfer Agreements, escrow agreements, and other ancillary documents. We ensure that terms are clear, enforceable, and robustly protect your commercial and legal position throughout the deal.
• Navigating Essential Regulatory Approvals: Securing the requisite government and regulatory approvals is critical for closing any business acquisition or transfer in Indonesia. We meticulously identify all necessary clearances, including those from the Investment Coordinating Board (BKPM), the Anti-monopoly Commission (KPPU), and relevant sector-specific authorities. We proactively manage the application and submission processes to ensure timely and compliant approval.
• Seamless Execution & Post-Transaction Integration: We guide you through the closing procedures, ensuring all conditions precedent are satisfied and the transfer of ownership is legally perfected. Beyond the closing, we provide essential legal advice on post-transaction integration, covering aspects such as corporate governance adjustments, employee transfer protocols, and the re-registration of assets, ensuring a smooth and compliant transition of operations.

By partnering with Malekat Hukum, you benefit from our profound understanding of Indonesian business law and our unwavering commitment to mitigating risks, optimising deal terms, and achieving your strategic goals with utmost legal certainty. We transform complex acquisitions and divestments into seamless and successful transitions.

For comprehensive details on our Business Acquisition & Transfer services or to discuss your specific transaction needs, please read more, or get in touch with us for a consultation.

In Indonesia’s vibrant yet complex real estate market, securing any land or property investment absolutely hinges on thorough, meticulous legal scrutiny. Our Comprehensive Property Due Diligence & Title Verification service is designed to provide you with unparalleled clarity and certainty, safeguarding your investment by meticulously investigating every legal facet of a property before you commit. We go beyond surface-level checks to uncover hidden risks, verify legitimacy, and ensure full compliance.

The intricacies of Indonesian land law, coupled with varying local regulations, make robust due diligence an indispensable step. Our expert team conducts exhaustive investigations and searches, covering critical areas:

• Ownership Verification & Title Authenticity: We perform in-depth searches with the National Land Agency (Badan Pertanahan Nasional – BPN) to verify the authenticity and legal status of land certificates (e.g., Hak Milik, Hak Guna Bangunan, Hak Pakai). This includes tracing the full ownership history, confirming the seller’s legal capacity, and ensuring there are no conflicting claims or prior registrations that could jeopardise your title.
• Uncovering Hidden Encumbrances & Liabilities: Our investigation extends to identifying any undisclosed financial or legal burdens on the property. We search for registered mortgages (Hak Tanggungan), liens, caveats, or other security interests that could impact your ownership or use. We also verify the status of property taxes (PBB), utility bills, and any ongoing lease agreements or easements that may affect the property.
• Detecting Fraud & Investigating Disputes: We apply our expertise to detect red flags indicative of potential fraud, such as suspicious documentation or unusual transaction histories. We meticulously investigate any active or historical legal disputes, claims, or challenges to the property title or its boundaries, consulting court records, land dispute registers, and local community insights to provide a complete risk assessment.
• Zoning & Land Use Compliance: Critical for any development or specific use, we thoroughly check the property’s designated zoning (residential, commercial, industrial, greenbelt, etc.) against the prevailing local Spatial Plan (Rencana Tata Ruang Wilayah – RTRW). We also verify the existence and validity of necessary land use permits (Izin Pemanfaatan Ruang – IPR) and building permits (Persetujuan Bangunan Gedung – PBG / IMB), ensuring your intended use is fully compliant.
• Physical & Environmental Considerations (Legal Aspects): We advise on legal implications arising from physical site inspections, including confirming boundary markers against certified maps and identifying any encroachments or potential environmental liabilities relevant to the property’s legal standing.

The Malekat Hukum Advantage:

Our comprehensive due diligence culminates in a detailed legal report, providing you with:

• Absolute Clarity & Certainty: A transparent understanding of the property’s legal status, free from hidden surprises.
• Robust Risk Mitigation: Protection against fraud, disputes, unrecognised encumbrances, and non-compliant usage.
• Informed Decision-Making: Empowering you to negotiate effectively and proceed with confidence.
• Prevention of Future Litigation: Safeguarding your investment from costly legal battles down the line.

For comprehensive details on our Comprehensive Property Due Diligence & Title Verification services or to discuss your specific property investigation needs, please read more, or get in touch with us for a consultation.

In Indonesia’s intricate and frequently evolving legal and regulatory landscape, maintaining continuous vigilance over your legal affairs is not merely prudent—it is essential for sustained business stability and growth. Our Legal Maintenance Agreements service provides a proactive, ongoing legal partnership, ensuring your business remains compliant, agile, and protected against unforeseen challenges. We offer continuous, dedicated support, transforming reactive problem-solving into strategic, preventative legal care.

This retainer-based service is designed to act as your continuous legal safety net, offering a range of essential components that ensure your business’s enduring legal health:

• Regular Legal Health Checks & Audits: We conduct periodic, comprehensive reviews of your company’s legal standing. This includes scrutinising key corporate documents, existing commercial contracts, human resources policies, operational permits, licences, and general compliance with prevailing laws. These regular check-ups identify potential vulnerabilities before they escalate into significant issues.
• Proactive Regulatory Updates & Advisory: The Indonesian legal framework, particularly concerning investment, labour, taxation, and sector-specific regulations, is constantly changing. We provide timely alerts and practical advice on new or amended laws and government policies, explaining their direct impact on your operations and advising on necessary adjustments to ensure continuous compliance.
• Ongoing Contract Review & Management Support: We assist with the continuous management of your contractual obligations and opportunities. This involves reviewing new agreements, advising on amendments to existing contracts, and ensuring that all contractual arrangements remain robust, enforceable, and aligned with your business objectives.
• Ad-Hoc Consultations & Responsive Advice: Our agreements provide you with ready access to our legal expertise for day-to-day operational queries. Whether it’s a minor contractual clarification, an emerging legal question, or initial advice on a potential dispute, our team is available for prompt, ad-hoc consultations, providing swift and practical legal solutions.
• Compliance Monitoring & Permitting Assistance: We help you stay on top of all ongoing legal and administrative obligations, including assisting with statutory filings, maintaining legal registers, and advising on the renewal or acquisition of necessary permits and licences.
• Risk Identification & Mitigation: Through continuous oversight and regular engagement, we proactively identify emerging legal risks, providing strategic recommendations to mitigate exposure to litigation, penalties, and operational disruptions.

The Malekat Hukum Advantage: Your Continuous Legal Partner:

By opting for a Legal Maintenance Agreement, you benefit from:

• Unparalleled Peace of Mind: Confidence that your legal affairs are under continuous expert surveillance.
• Significant Risk Mitigation: Preventing costly disputes and compliance breaches before they occur.
• Enhanced Cost Efficiency: Often more economical than engaging legal counsel on a piecemeal basis for individual issues.
• Strategic Agility: Rapid access to legal insights allows you to adapt swiftly to regulatory changes and market shifts.
• Operational Continuity: Minimising legal interruptions and allowing you to focus on your core business.

For comprehensive details on our Legal Maintenance Agreements and to discuss how a continuous legal partnership can benefit your enterprise, please read more, or get in touch with us for a consultation.