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Hak Sewa (HS) explained: What is it and how to obtain it?

hak sewa in indonesia

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Hak Sewa (HS) is an important land title in Indonesia that is often sought after by foreign investors and expats looking to buy property in Indonesia. As with many land titles in Indonesia, understanding what Hak Sewa is and how it works can be challenging. This article aims to explain in English what Hak Sewa is, why it’s important, and the process of obtaining the certificate.

What is Hak Sewa?

Hak Sewa, or the right to lease, is a legal framework in Indonesia that allows individuals or legal entities to lease land or property. This right is especially relevant for foreigners wanting to buy and own property in Indonesia, as direct ownership is typically restricted. Hak Sewa gives the lessee the right to use the land or building for a specific period, usually between 25 and 30 years and extendable up to 80 years.

The importance of Hak Sewa is in its ability to provide a secure and legal way for foreigners to invest in Indonesian real estate. The certificate offers stability and security, as the lease rights are protected under Indonesian law. This right is important for long-term residential or commercial investments in the Southeast Asian country.

When do I need to get a Hak Sewa certificate?

A Hak Sewa certificate is necessary for any foreign national or entity looking to lease land or property in Indonesia. It’s especially important to foreigners who want to reside in Indonesia for an extended period or want to engage in business activities, such as property rentals. With this certificate, Indonesian law legally recognizes and protects your lease agreement.

What is the difference between Hak Sewa and a lease agreement in Indonesia?

Understanding the difference between Hak Sewa and a lease agreement is important. Hak Sewa is a legal term under Indonesian law referring to the right to lease land or property for a set period. It’s a right recognized by Indonesian property law, typically involving a formal process including notarization and certification by local authorities.

On the other hand, a lease agreement is a broader term that can apply to any construction arrangement where one party agrees to rent property owned by another. While Hak Sewa is a type of lease agreement, it’s specific to Indonesian law and includes additional legal formalities and protections.

How to apply for Hak Sewa?

The process of obtaining Hak Sewa in Indonesia involves several steps:

  1. Find a suitable property: The first step is to find land or property available for lease. Ensuring the property owner has the right to lease the land is important.
  2. Negotiate lease terms: Negotiate the lease terms, including duration, payment, and other conditions.
  3. Draft a lease agreement: Once the terms are set, a lease agreement should be drafted, outlining all the terms and conditions agreed upon. Contact us at [email protected] to get assistance with drafting your lease agreement in Indonesia.
  4. Notarize the lease agreement: To ensure its legality, the lease agreement must be notarized.
  5. Obtain the Hak Sewa certificate: The next step is to apply for the certificate at the local land office, which involves submitting the notarized lease agreement and other required documents.
  6. Pay the fees: Pay the fees that are associated with the issuance of the Hak Sewa certificate.
  7. Receive Hak Sewa: After completing all steps, the Hak Sewa certificate will be issued. This certificate will give the lessee the legal right to use the property for the duration of the lease.

Get Hak Sewa in Indonesia with Own Property Abroad

Are you looking to buy property in Indonesia? Or do you want to obtain Hak Sewa? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our extensive knowledge and local experience in the Indonesian market, we can help with legal requirements, applying for Hak Sewa, finding suitable properties, negotiating the best deals, and conducting due diligence.

With our expert team, you won’t have to navigate the complexities of the Indonesian market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!

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Frequently Asked Questions (FAQs)

What does Hak Sewa mean in English?

Hak Sewa, in English, means “Leasehold Right”. It’s a legal term used in Indonesia to describe a type of property lease agreement, allowing the lessee to use the land or building for a specific period.

Can foreigners apply for Hak Sewa in Indonesia?

Foreigners can apply for Hak Sewa in Indonesia. This certificate enables them to legally lease land or property for a certain period, typically between 25 and 30 years and extendable up to 80 years.

Do I need Hak Sewa for a villa in Bali?

Foreigners looking to lease a villa in Bali benefit from obtaining Hak Sewa. Although not mandatory, the certificate gives foreigners the legal right to lease the villa in Bali for a set period, aligning with Indonesian property laws for foreign ownership.

Is Hak Sewa for land or buildings?

Hak Sewa can be applied to both land and buildings in Indonesia. The certificate covers various property types, including residential villas, commercial buildings, and land plots in Indonesia.

How much does Hak Sewa cost?

The cost of Hak Sewa varies depending on several factors, including the location, size, and property type.

Your guide to buying property in Indonesia

Written by Matt Timmermans

2 Responses

  1. When looking to buy a house which is registered with a Hak Sewa agreement, what does the price mean? Is it an upfront payment which I later add onto with rent or do I pay it so I can have the house for the set period?

    1. Hello Mirella, the price in a Hak Sewa agreement typically refers to the upfront payment for the entire lease period. You pay this to secure the property for the set period, not as an initial payment with additional rent later.

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