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Overview of relevant laws and regulations in IndonesiaHak Pakai can be granted for a definite period of time or indefinite period of time. For definite of time, HakPakai is granted for a maximum of 25 years and may be extended for an additional term of 20 years.Following expiration of this additional term, an extension cannot be granted but a renewal application maybe made. Like a HGB renewal application, certain requirements and procedures for a Hak Pakai renewalapplication must be complied with and followed including submitting relevant supporting documents andpaying certain amount of administrative fee chargeable by the local land office and subject to an inspectionto the location by the local land office. Hak Pakai with an indefinite period of time can be granted as long asit is in use to governmental departments or institutions, local governments, embassies/representatives ofother countries, representatives of international institutions, religious bodies and social institutions.Under the New Investment Law, Hak Pakai with definite period may also be granted for a longer periods foran advance acceleration of land title for a period of 45 years and it may be renewed for an additional term of25 years.The extension and/or renewal of HGB or Hak Pakai title is granted if the following conditions are met:(a)(b)(c)(d)the land is being properly used in accordance with the situation, nature and objective of the grantingof the right;the requirements of the granting of the right are fulfilled by the title holder;the titleholder still meets the requirements as a titleholder of the land; andthe land is still used in accordance with the Spatial Plan (Rencana Tata Ruang Wilayah) of the area.The granting of acceleration and renewal of HGB and Hak Pakai based on the New Investment Law mayonly be granted if the following conditions are met:(a)(b)(c)(d)(e)the investment will be conducted for a long period and related to structural changes of the Indonesianeconomy;the investment with a level of investment risk that requires a long term investment return inaccordance with the type of investment being conducted;the investment which does not require an extensive area;the investment which uses state-owned land rights; andthe investment which does not disturb the sense of impartiality in the community as well as publicinterest.The renewal of the HGB and Hak Pakai based on the New Investment Law may be granted after it isevaluated as to whether the land can be further appropriately used according to the condition, nature andobjective of granting of the rights.It is unclear how the land office will respond to the issuance of the New Investment Law, which grants alonger period of the term of the land title.A HGB or Hak Pakai title holder has the right to erect, occupy and use buildings on such parcel of land andsell all or part of such parcel to a third party. Further, the HGB or Hak Pakai title can be revoked if thefollowing occur:(a)(b)(c)(d)the period of the title as stated in the decision/agreement of granting or extending the title is expired;the authority or the HPL or Hak Milik holder terminates the period before the expiry of the land titledue to (i) non fulfilment of the obligations of the land title, (ii) non compliance of the requirements orobligations stated in the decision/agreement between the HGB or Hak Pakai holder and the HPL orHak Milik holders, or (iii) the final and binding court decision;the revocation of the land title; orif the land title holder who is not an eligible party to hold the title does not transfer the land title to otherparty within one year.If the HGB or Hak Pakai title on State-owned land is revoked, is not renewed or extended, the HGB or HakPakai holder must demolish the buildings erected on such land and return the land to the state within one242