Principles of Buying Land in Indonesia

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has discussed about "How To Check the Validity of Indonesian Advocates?", read also "If I Get Fired, What Are My Rights According to Indonesian Law?" and on this precious occasion will be discussed about Principles of Buying Land in Indonesia?

In this article, it is assumed that you already understand which business sectors are open or closed for foreign direct investment in Indonesia. Read the previous article "Latest Negative List of Investments In Indonesia". It is also assumed that you have understood how to set up a company in Indonesia. Read the previous article of Hukumindo.com titled: "Process and Requirements for Establishing a Limited Liability Company for Foreign Investment". And now to run the company that you have founded in Indonesia, you need land as a place to establish a production unit. In this article, we will briefly explain tips so that you are free from legal defects or disputes when buying land in Indonesia. 

The Principle of Buying Land in Indonesia

This principle is important to be used as a guide when you are going to buy land in Indonesia. If applied when you make land purchase transactions as intended, God willing, you will be free from legal defects or disputes afterwards. Or at least, the application of this principles will minimize the negative impact. 

Apply the "free, clean and clear" principles when buying land in Indonesia. What is meant by principles of free, clean and clear here?[1], [2].

What is meant by the "free" principle here is the land you are going to buy is free from disputes. 

What is meant by the "clean" principle here is the land that you are going to buy is not being used for any activity, or occupied by another person or anyone who does not have rights. 

What is meant by the "clear" principle here is refers to the land boundaries that exist in the field according to those in the certificate.

In addition, the author explains here that the "free" principle is related to certainty regarding the suitability of the land you are going to buy with the land certificate. You can check in the field and check with the National Land Agency regarding this. Make sure its suitable. Regarding the "clean" principle here, make sure in the field that the land you are going to buy is not controlled and/or being used by other parties who are not entitled to it. Make sure the land you are going to buy is ready for you to use. And the last, regarding the "clear" principle here, is related to the boundaries of the land that you will buy. Make sure the North, South, East and West boundaries of your land. In the event that the land you are going to buy is properly cared for, usually there is a kind of land stake as a boundary marker for the land you are going to buy. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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References:

1. "Ini Tata Cara Jual Beli Tanah yang Sah di Mata Hukum", www.popbela.com., diakses pada tanggal 28 Oktober 2021, https://www.popbela.com/career/inspiration/natasha-cecilia-anandita/tata-cara-jual-beli-tanah/4

2. "Prosedur Tepat Beli Tanah", www.rumah.com., Diakses pada tanggal 28 Oktober 2021, https://www.rumah.com/berita-properti/2017/6/155415/prosedur-tepat-beli-tanah