Hak Milik (freehold, SHM)

In one sentence. Full ownership title to land, available to Indonesian citizens only; the SHM certificate is where every plot check begins.

Hak Milik is the highest form of land right in Indonesia, the equivalent of freehold. It is evidenced by an SHM certificate (Sertifikat Hak Milik) issued by the land office, BPN. Only an Indonesian citizen can hold it — the title is closed by law to foreigners and to foreign-owned companies.

For a villa buyer, SHM matters as the lessor's title: you lease land from whoever is named in the certificate. So due diligence starts with three questions: does the certificate exist, is the named holder the person signing, and are there encumbrances (a Hak Tanggungan mortgage, a seizure, a dispute).

Where to check: first screening in BPN's Sentuh Tanahku app by certificate number; the full extract with encumbrances comes only via an official request from a notary (PPAT) to BPN. A PDF from the seller is not a source.

"Putting the SHM in a trusted Indonesian's name" is a nominee arrangement: void under Art. 26(2) UUPA and, since 2026, expressly targeted by Bali Perda No. 4/2026.

Updated: 2026-09-20. Not a public offer. Regulations change — we cite enacted acts only and update the entry when they do.

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