When individuals move to Indonesia for the purpose of expatriation, the process typically involves a large number of personal and legal considerations. While it is essential to explore the notions of belonging, to find appropriate communication opportunities, and to understand how the local culture, it is nonetheless important to note the issues of legal nature. The purpose of this editorial is to provide a framework for you to think about if you come to the idea of land ownership in Indonesia.
It should be noted that no matter where you reside in Indonesia - Bali, Jakarta or elsewhere - unless the regulation provides otherwise, the laws of general application. In terms of land ownership for foreigners, the basic land law (Law No. 5 of 1960) limit foreigners to own land in Indonesia. Individuals are not allowed to acquire land under the "right of use" (Hak Pakai) land title. Hak Pakai is similar to a long-term lease, it is granted for 20 years and can be extended to 20 years.
Foreign companies have more options when obtaining land. Once a foreign investment is recognized as a corporation under Indonesian law, investors can acquire two types of land titles, the right to build (Hak Guna Bangunan) Land Title, which is valid for 30 years and may be extended 20 years and the right to use (Hak Guna Usaha) under the earth, which is valid for 35 years and can be extended to 20 years.
Hak Pakai and Hak Guna Bangunan are usually granted for residential and commercial buildings, Hak Guna Usaha while is given to companies in need of large land or for agricultural, industrial, mining.
If you are interested in owning an apartment in Indonesia as a foreigner, you should know that you are able to buy apartments in Indonesia if the building has a security status strata. But you will not hold the title to the strata; you can maintain the right to use. The two common ways to have ownership in Indonesia buys the property via a convertible rental agreement or arrangement candidates.
Convertible Lease Agreement allows foreigners to sign an agreement with the development company. With this agreement, the alien is able to buy property (an apartment, for example), but the title is held in the name of the promoter. The lessee will obtain ownership automatically if the law regarding ownership changes and allows foreign ownership. You should know that there is no freedom of contract, and the contract is usually written by the developer. Therefore, whenever you contemplate signing a unilateral contract, you should definitely consult a lawyer before putting your purchase rights or your funds.
For an understanding of the candidates, foreigners give confidence to an Indonesian person who buys the property under the Indonesian name.
If you are part of a couple / Indonesian Expat, vital preparation for the purchase of property is whether or not the spouse and the Indonesian Expat spouse have a prenuptial agreement for separation of property . If there is such an agreement, you can legally buy property, but must be signed before the marriage takes place.
Overall, land and property purchase for foreigners is quite a complex activity. Please refer to these websites such as http://www.expat.or.id/info/buyingproperty.html to search for more information. Do not hesitate to consult a lawyer, especially when it comes to sign anything. Be careful to trust regarding the purchase of goods.
It is highly recommended that if you are interested in planning or buying the property you are looking for the representation of a law firm with real estate expertise.