I don't wanna debate semantics but hak pakai can be purchased and sold (and converted to SHM) with Kitas/kitap. Yes taxes are higher but beats having a nominee structure with Pak Ketut
Sure, let's keep it clear to avoid translation issues. Also let's set aside the business aspects (which one is more profitable, etc) for now, as that's a separate topic. However, the legal details need to be clarified to prevent any misleading information, since this forum is also read by others with similar interests.
Can
a foreigner own a property that includes
BOTH the
building AND the plot of land it’s on? We are talking here ownership
freehold of Building and Land built on it. What typically a foreigner own here is a long-term lease up to 80 years extendable for up to 20 years with maximum of 100 years in total. In Indonesia this is called HGB (hak guna bangunan) or HP (Hak pakai). Essentially, this is similar to long term leasehold because you don't have the freehold of the land. If the building needs to be demolished due to age, or if the (80+20 yr) has elapsed you would own nothing.
Is it possible for
a foreigner to convert 'hak pakai' or HGB *Hak guna Bangunan) to SHM (Sertipikat Hak Milik) for a property
that includes a building and the plot of land it’s built on? Nope. This will only be possible if you sell it to Indonesian citizen before (80+20yr) has elapsed. It can not be converted by the foreigner just because they thought they own that land. Additionally, even for Indonesian citizens, not all "hak pakai HP", "hak guna banguan HGB" can be converted into SHM (Sertipikat Hak Milik), there are some restrictions.
Hak milik, freehold of land is exclusively reserved to Indonesian citizens. It is not even a grey area it is clearly written in the law without any ambiguity. Feel free to provide evidence if this isn't the case.
I am aware there are a lot of investment scammers, influencers try to twist this land ownership issue to those who do not understand the land titles in Indonesia aiming for huge commissions, fees. Indonesia is a highly protective country in many areas, land ownership, trading, taxation, etc.