Legal Certainty of Property Ownership for Foreigners

Abstract

Basically, only Indonesian citizens are allowed to own land in Indonesia. The government's efforts to encourage development and economic growth in the country by strengthening foreign investment have implications for property ownership regulations for foreign citizens who are interested in owning land, buildings or residences in Indonesia. The purpose of writing this article is to examine the legal certainty of property ownership for foreigners. The writing method used is the Normative Juridical Method using primary legal sources and supporting legal materials which are then analyzed through legal interpretation of relevant regulations. The results of this research areForeign citizens in Indonesia basically only have ownership rights to land and buildings through use rights and lease rights. Details of the implementation of the Basic Agrarian Law are regulated through Government Regulation no. 40 of 1996 concerning Business Use Rights, Building Use Rights and Land Use Rights as well as Government Regulation no. 41 of 1996 concerning ownership of residential houses or residences by foreigners. Furthermore, this regulation was followed up with Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 7 of 1996 concerning requirements for residential ownership, which was later replaced by Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 8 of 1996 concerning requirements for ownership of a residence or residence by foreigners.