Housing laws

[Expat1441]

I was told by someone that if you buy an apartment and then the government decides to breakdown the apartment block for whatever reason, (ie building highways) they are not required to compensate you.

However if you buy a house and the government wants to break it down to build something else they are legally obliged to compensate you.

Is this true?

 

[snpark]

Probably since it is down to the landowner not the leaseholder of whatever is built on the land
i.e you have a lease on an apartment built on land owned by someone else
And even the "owner" of the building is not you (if in apartment) and it should be 51% Indonesian tenants so thats why never live in a tower with all expats

 

[Dave70]

I was told by someone that if you buy an apartment and then the government decides to breakdown the apartment block for whatever reason, (ie building highways) they are not required to compensate you.

However if you buy a house and the government wants to break it down to build something else they are legally obliged to compensate you.

Is this true?

Apartment buildings are built on lands with HGB title. HGB (Hak Guna Bangunan) is "Right to Build", meaning the state owns the land, you are just given the right on it for 30 or 20 years. Perhaps the state can revoke it anytime if the land is needed by the government.

If you buy a house, the status of the land can be 'Hak Milik' or freehold. However, there are also houses built on HGB, so be aware.

 

[centurion]

If the apartment building is built legally with all the paperwork, the full tax estimate price would be paid in case of expropriation.
In the case of the HGB title, the government reimburses the full tax estimate price, the same as they would do for the Hak Milik title.