Adopted from Indonesian Agrarian Law No.5 year 1960
   
Indonesia's land legislations do not recognize the concept of freehold land rights. Instead the various rights attached to the land are subdivided into separate titles. 
 
The Basic Agrarian Law (Law No. 5 of 1960) recognizes type of rights on land of non-state-forest area, whereas for the state-forest area, the Law No. 5 of 1967 on forestry is applied. To foreign as well as domestic investors, the following three main rights are significant; the Land Cultivation Right (Hak Guna Usaha, abbreviated as HGU), the Right of Building on Land (Hak Guna Bangunan, abbreviated as HGB) and the Right of Use on Land (Hak Pakai, abbreviated as HP).  These rights authorize the use of land in some ways, and their differences are mainly on the duration of validity, the nature of utilization, the opportunity to mortgage (to use as an asset or collateral) and proof of title: 
   
a.
The Land Cultivation Right (HGU) is the right to use a State Owned Land for the purposes of agriculture namely plantation, fishing, or cattle rising. By law the title is granted for a maximum period of 35 years, but can be extended to 25 years if the land is properly used and managed. This title of right is given to Indonesian individual(s) or legal entities domiciled in Indonesia including PMA companies. It can be used as a collateral or transferred to other party with the government approval. 
   
b.
The Right of Building on Land (HGB) is the right to construct and own buildings on a piece of land that one has purchased. The title is granted for a maximum period of 30 years and can be extended for a maximum period for 20 years for Indonesian individual(s) and /or legal entities domiciled in Indonesia, including PMA companies, and can also be used as a collateral or transferred to other party. This is also applicable and generally granted to tenants in industrial estates. 
 
c.
Right of Use on Land (HP) is the right to use land for a specific purpose and granted for a period of 25 years and can be extended for period of 20 years or as long as the land is used for a certain (normal) utilization. Now, this right can also be used as a mortgage. In addition, it can also be transferred to other party through a government approval. 
   
 
A dwelling house or a residence that can be owned by a foreign person shall be :
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separate house constructed on a piece of land with the right of utilization on state land or controlled on the basis of an agreement with a land holder; or:
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An apartment constructed on a piece of land with the right of utilization on state land.
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Security Right (Hak Tanggungan) This right was created by Law No 4 of 1996 Re Security Title on Land and Land-Related Objects. Prior to the enactment of this law, mortgage law governed by the colonial legislaion concerning what was called hipotheek (hypothecation) which was the only part of the Indonesian Civil Code relating to land, which was not expressly revoked by the Basic Agrarian Law. The security right on land and land-related objects corresponds to the mortgage interest in common law jurisdictions.