[FOR SALE] Brand New Villa in Cluster One-Gate System Pecatu Bali

[marcus]

... After researching this a lot I ended up feeling Hak Pakai was more a way around the constitutional ban on foreigners owning property in Indonesia designed to still actually allow them to do it, than it was an attempt to take land away from people.

I guess you are mistaken .

For example , Indonesian companies (except maybe, Government companies) also cannot have Hak Milik certificate , and so most(?) have Hak Pakai certificate .

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Indonesian Land Law no.5 Year 1960 (free translation - interested people should check about revision of these Articles)
Article 21.
(1) only Indonesian citizens can have property's full rights (hak milik) .
(2) the government determines which legal entities can have property's full rights (hak milik) and the conditions thereof.
(3) , (4) ...

Article 42.
Those who can have the right to use (hak pakai) are:
a. Indonesian citizens;
b. foreigners domiciled in Indonesia; (poster's Note : not sure but this maybe changed to include non-residents too)
c. legal entity established according to Indonesian Law(s) and domiciled in Indonesia;
d. foreign legal entities that have representatives in Indonesia.

 

[pantaiema]

The type of registration can be changed. Just as the original Hak Milik designation on the building will have been changed to Hak Pakai,

It shouldn't be an issue as long as this 'hak milik of the building' owned by foreigners is not presented as full ownership like Indonesian citizen enjoy and the buyer clearly understands what they are getting to prevent any misunderstandings. But what has happened sofar is dishonest developers, salesmen, try to use semantic play with title presenting it as 'hak milik' which is literally just a long term leasehold, or literaly the same with 'Hak Pakai / HGB' to confuse people. 'hak pakai /HGB' is significantly different with 'hak milik'. Hak Milik owned by wni grants perpetual ownership and can be passed down to future generations.

....... so it can be changed back if you sell to someone who can legally buy it (ie an Indonesian).

While this is true, remember that close to the end of your leasehold, your bargaining power will be very limited. The buyers are aware that if you don't sell it before your lease expires, you will lose your property regardless.

After researching this a lot I ended up feeling Hak Pakai was more a way around the constitutional ban on foreigners owning property in Indonesia designed to still actually allow them to do it, than it was an attempt to take land away from people.

The agrarian law from 1960 states this, but I am not aware of any provision in the constitution explicitly prohibiting foreigners from owning land. While Article 33(3) of the constitution states that land, water, and natural resources are controlled by the state for the welfare of the people, it does not explicitly forbid individual ownership. Moreover, this article in the constitution applies to both Indonesian citizens and foreigners, yet it is a fact that Indonesian citizens can hold 'hak milik'. Also remember 'hak pakai (right to use)' in Indonesia already exists in Indonesia far before property ownership by foreigners becomes a trend.

So imo it just a matter of changing the law instead of amending the constitution.