“Hak
Pakai” (Right to Use)
Based on Article 41 Law
Number 5 of 1960 concerning the Principle Regulation of Agrarian (“Indonesian Agrarian Law”), Right to use
is the right for using the property over the land title and/or to collect the benefits from the land title directly owned by
the State or the land owned by the other person or legal entity. Right to use is issued based
on the decree from the competent authority regarding the grant of right to use
with reference from the agreement with such landlord / land owner, which is different from the rent/lease agreement or
land cultivation agreement.
Right to use
as stipulated on Article 42 Indonesian Agrarian Law shall be only provided to
Indonesian citizen, foreigner domiciled in Indonesia, legal entity establish
under Indonesian law and domiciled in Indonesia, and foreign legal entity that
has the representative office. Based on Article 39 Government Regulation Number
40 of 1996 concerning Right to Cultivate (“HGU”),
Right to Build (“HGB”), and Right to
Use (“Hak Pakai”), right to use
shall include non-governmental organization department, local government,
religious or social agency, foreign country representative, international
representative body.
As stipulated in Article 41
Government Regulation Number 40 of 1996, the right touse can be only used on
the state land, land with has right to management title, and freehold title (“hak milik”).
Grant of Right to Use
Right to use over the state land
shall be provided with decree issued the Minister of Agrarian.
For the right to use over the right to manage, the right to use shall be
granted with the decree issued by the Minister of Agrarian or the appointed
state official regarding the grant of right touse based on the suggestion of
the right to manage.
Right touse over the
freehold title shall be arise with the grant of the land by the holder the
freehold title as made in the form of deed by the land deed official (Pejabat
Pembuat Akta Tanah).
Right
to Use as Collateral
The right touse over
the state land and the right to manage can be used as the collateral with
mortgage (“Hak Tanggungan”).
The mortgage is terminated when the right to use has expired.
Transfer
of Right to Use
The right to use
granted in the State land for specific period and land with the right to use
may be transferred to other party.
For the right to use over the land with the freehold title may be transferred,
if the transfer right to use may be possible under the agreement regarding the
grant of right to use between the holder of right to use and the holder the
freehold title.
Transfer of right to use
shall be performed in the following action:
a.
Sale and purchase;
b.
Exchange;
c.
Capital investment;
d.
Grant;
e.
Inheritance.
The transfer of right
to use over the land state shall be made under the permit from the competent
authorities.
The transfer of right
to use over the land with right to manage shall be made based on the written
approval from the holder of the right to use.
The transfer of right
to use over the freehold title shall be made based on the written approval from
the holder of freehold title.
The transfer of right
to use shall be register in land office (kantor pertanahan).
The
Expiration of the Right toUse
The right to use shall
be expired caused by the following reason:
a.
the right to use period as determined in
the decree regarding its grant is expired
b. the right to use has been cancelled by
the competent authorities before the expiration of the right to use period;
c. the right to use has been released by
the holder of the right to use before the expiration of the right to use
period;
d.
the right to use has been revoked;
e.
the right to use has been abandoned;
f.
the right to use is extinct;
g.
Article 40 section Government Regulation
40 of 1996
