Knowledge

The following are type of security rights available under Indonesian laws:

 

1. Hak Tanggungan (HT)

 

HT is the nearest equivalent to a “mortgage” as understood in other jurisdictions. Assets that can be secured by HT are rights on land and assets which form an inseparable part of the land (such as buildings, machineries, fixtures, and plants attached to the land).

 

Rights on land that can be secured by HT include right of ownership (hak milik), right to manage (hak guna usaha), right to build (hak guna bangunan) and certain right to use (hak pakai). Currently HT can also secure ownership over apartment/office space units (strata titles).

 

HT must be made in a deed of granting HT drawn up by a land deed official (Pejabat Pembuat Akta Tanah – PPAT) in Indonesian language having jurisdiction where the land/apartment is located. HT is effective upon its registration with the relevant Land Offices having jurisdiction where the land/apartment is located. It is possible to create multiple HTs over the same objects.