Most serious projects use a PT PMA — a foreign-owned Indonesian company — holding Hak Guna Bangunan (HGB) building rights that can run to about 80 years in total, long enough to build, operate and sell. A properly documented joint venture with the landowner is another route. Nominee arrangements are legally void. Information only.
What is a PT PMA?
A limited company in Indonesia with foreign shareholders — PMA stands for penanaman modal asing, foreign investment. It can hold building rights, employ staff and hold the licences the business needs. It is the standard vehicle for real business in Indonesia, not a workaround. For what it costs to set up, see PT PMA setup cost and minimum capital.
How long do HGB rights last?
Up to about 80 years in total. HGB — the right to build and hold buildings on land — is granted for up to 30 years, extendable by 20, then renewable by 30: 30 + 20 + 30 = 80.
That runway is worth more than a cheap short lease, because it leaves room to build, operate for decades and still sell to a buyer who has plenty of years ahead. Information only.
What about a joint venture with the landowner?
The landowner puts in the land; the other party puts in the money and runs the business, and the result is shared on agreed terms. Done properly and in writing, with Indonesian counsel, it aligns everyone for the long term.
Why not just use a nominee?
Because it is void. Putting land in an Indonesian citizen’s name on a foreigner’s behalf has no legal standing, and enforcement has been rising. It is a risk, not a structure.
Which structure fits your project?
It depends on whether you plan to hold, operate or sell, and when. Decide the plan first, then fit the structure to it. If you will need capital to build, the structure also determines what security a capital provider can take — see security over HGB and a PT PMA and whether to use a separate company for the project. Not legal advice.
Sources: Government Regulation 18 of 2021; structures as at 2026. Not legal advice — take advice from Indonesian counsel. General information about the Indonesian market, not legal, tax or financial advice.
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