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Overview of relevant laws and regulations in Indonesiayear after the land title is revoked. If the HGB or Hak Pakai title on Hak Milik or HPL land is not renewed orextended, the HGB or Hak Pakai holder must return the land to the Hak Milik or HPL land in accordancewith agreement among the parties.The application should be made no later than two years prior to the expiration of the additional term. Theland office has discretion to grant the various extensions.Hak Pengelolaan (HPL/Right to Manage). HPL is the right to (i) plan the purpose and the use of theland, (ii) use the land for the needs of the business of the holder, and (iii) surrender plots of land to thirdparties in accordance with the terms and conditions laid down by the holder of the HPL title. HPL titles canbe granted to (i) Indonesian governmental institutions including local government, (ii) State-ownedenterprises (ii) Indonesian regional government enterprises, (iv) Persero Limited Liability Company,(v) Authority bodies and (vi) other legal entities owned by the Indonesian government. HPL is grantedfor an indefinite period of time. The application of granting HPL is made to the relevant Minster throughlocal Land officers where the land is located. HGB and Hak Pakai can be granted over the HPL land basedon local land officers’ recommendations.Strata Titles. Indonesian law regulates strata titles, as stipulated in Law No. 16 of 1985 and GovernmentRegulation No. 4 of 1988 and its implementing regulations. Strata title buildings may only be constructedon plots of land with a right of ownership (Hak Milik), HGB or Hak Pakai on State-owned land. For a plot ofland with HPL, such right must first be converted to a HGB for the construction of multi-storey offices,residential or retail buildings on it. Under Indonesian law, strata title is a legal title to the building propertyand common property, common area and common land of which all constitute an inseparable part to thestrata title ownershipThe right of strata title ownership may be owned by an individual, a corporation established underIndonesian Law and domiciled in Indonesia or foreigners depending on the title of the land where a stratatitle building is built. For strata title ownership, a certificate for the right of strata title ownership is issued.Strata title buildings including the underlying common land and the right of strata title ownership may be putas encumbrance with (a) Hak Tanggungan, if the title of the land is Hak Milik or, HGB and Hak Pakai ofstate-owned land, or (b) fiduciary security, if the title of the land is Hak Pakai on state-owned land. A stratatitle building may only be sold after the a regional government grants the occupation permit (Iljin layakhuni).The term of the strata title, together with its extension, depends on the title of the underlying common land(i.e. Hak Milik, HGB and Hak Pakai) that has been issued.The process of obtaining strata title certificates commences with the construction of the strata title building.Prior to construction, the developer must obtain a building licence from a local government. Theapplication form must indicate the purpose of the use of the strata title i.e for residential or nonresidential or both. Aside from the building licence, the developer must prepare the specificationclearly showing the boundaries of each strata title unit, common area, common land and commonproperty and their proportional ratio value which must be authorised by the second level of localgovernment. If the specification provides the necessary details and is authorised by the localgovernment, the local government will issue the building licence and the developer may beginconstruction of the strata title buildings. The specification will be used as the basis for preparing theseparation deed for the strata title.Upon completion of the construction of the strata title the developer must obtain the occupation permit.The local government will issue the occupation permit after conducting an inspection of the architecture,construction, installation and other supporting facilities of the strata titles building. The next step is toprepare a separation deed which shows a drawing and description of the separation between the units andcommon area, the common land and the common property, as well as the vertical and horizontalboundaries. The separation deed is subject to approval by the second level of local government andwill be used as the basis for issuing the strata titles certificates. After the separation deed is certified andregistered and the local land office issues the land book of the strata title, the strata title certificate for eachunit is issued under the registration name of the developer. The strata titles certificate consists of (a) anexcerpt of the land book of the strata title, (b) an excerpt of the measurement letter/the drawing layout of thecommon land and (c) the drawing layout of the strata titles showing their level and location.243