Global Law Experts top search results to help tackle law in Indonesia

Hak Pakai grants the right to use land for specific purposes, often limited in duration and sometimes restricted to individuals or entities. Hak Guna Bangunan, on the other hand, allows construction and use of buildings on state land for a fixed period, generally longer than Hak Pakai. Both titles come with rights and obligations regulated by Indonesian law, and understanding their differences is crucial for property investors and users.

Starting a company in Indonesia requires registering the business entity, obtaining necessary permits, and complying with local regulations. Entrepreneurs must prepare documents like the deed of establishment and secure approvals from the Ministry of Law and Human Rights. Licensing, tax registration, and adherence to foreign ownership restrictions, if applicable, are key steps. Consulting professionals helps ensure compliance with Indonesia’s regulatory framework.

Indonesia’s criminal justice system involves investigation, prosecution, trial, and appeals. The police investigate crimes and may detain suspects, who have rights to legal counsel and fair treatment. Trials are held in district courts, with the possibility of further appeal to higher courts. The process emphasizes transparency and due process, while respecting defendants’ rights under Indonesian law throughout each stage.

Employees in Indonesia are entitled to fair wages, regulated working hours, social security, and safe working conditions. Labor laws protect against unfair dismissal and provide rights to leave, including maternity leave. Trade unions play a role in collective bargaining, strengthening worker protections. These legal frameworks ensure employees are treated fairly and with respect, fostering a balanced labor environment.

Indonesia has a civil law system, primarily based on Dutch colonial law, with influences from customary (Adat) law and Islamic law. Civil law governs most areas like contracts, property, and business, while Adat and Sharia may apply in family and personal matters, especially in regions like Aceh. Courts rely on codified laws rather than judicial precedent, which is typical of civil law countries.

In Indonesia, Hak Milik (Right to Own) is the strongest property title, available only to Indonesian citizens, granting full ownership with no time limit. Hak Pakai (Right to Use) allows foreigners, companies, or organizations to use land (e.g., for housing or business) for a fixed period, usually up to 30 years, extendable. Unlike Hak Milik, Hak Pakai does not grant absolute ownership.

As a foreigner, you cannot own land outright in Bali. You may acquire property through Hak Pakai (Right to Use), valid for 25–30 years and extendable, or via a PT PMA (foreign-owned company) using Hak Guna Bangunan (Right to Build). Both routes provide secure, legal alternatives to freehold ownership.

In Indonesia, foreigners cannot directly own freehold land. Using a PMA (foreign-owned company) is one legal way to hold property under Hak Guna Bangunan (Right to Build), especially for investment or business purposes. However, for personal residential use, foreigners may instead acquire property under Hak Pakai (Right to Use) without forming a PMA.

Indonesia’s Negative Investment List (DNI) outlines sectors restricted or closed to foreign investment, limiting or prohibiting foreign ownership in certain industries. It sets maximum foreign shareholding percentages or full prohibitions. Replaced by the Positive Investment List (2021), it now generally opens more sectors but still reserves some for locals, impacting investor options.