The following discuss various types of land ownership right.
HAK MILIK (translated into Ownership Right)
Unrestricted ownership right over a defined plot in Indonesia (equivalent to freehold ownership). Unlimited duration.
Reserved only for Indonesian citizen and some approved legal entities
May be sold, gifted away, barter and bequeathed.
Can be mortgaged (Hак Tanggungan).
HAK GUNA BANGUNAN (HGB)
Owner has right to construct buildings and other structures on the plot. This right is common for residential and commercial projects.
May be owned by Indonesian citizens and Indonesian legal entities, including a foreign limited liability company (РТ. PMA) ( regulated by Investment Law (Law #25 2007))
HGB granted for the term of 80 years (30 years of the initial period plus 20 years of the extended period with further 30 years renewal period).
May be sold, gifted away, barter and bequeathed.
Can be mortgaged (Hак Tanggungan).
HAK GUNA USAHA (HGU) Right of Exploitation
Owner is granted right to exploit the land ( crops, , fishery or livestock).
May be issued to Indonesian citizens and legal entities crated in accordance with Indonesian legislation.
HGU Is granted for term of 25 or 35 years (subject to certain conditions) and may be extended for another 25 years provided land has met maintenance requirement.
May be sold, gifted away, barter and bequeathed.
Can be mortgaged (Hак Tanggungan).
The Right of Exploitation (Hak Guna Usaha or HGU) is granted for a period of not longer than 25 years and could be renewed for 25 years. To an enterprise/ a corporate bodies that needs a longer period, HGU for not longer than 35 years may be granted.
HAK PAKAI
Right to use land including residing.
Article 41 of Agrarian Law : Hak Pakai is defined as a right over land which is controlled by the state or a land which is owned by another person. Foreign individuals can only own Hak Pakai. This is the only way for foreign individuals to own property rights, albeit in a limited way, provided that continue to hold residency right in Indonesia. There is some protection because Hak Pakai is registered with the Land Office. Care should be taken with regard to recommendation to use leasehold interest (particularly where it is not registered with the Land Office).
Please see this page on process of property purchase in Indonesia