It's time to bring out the legal eagles for a look at the expatriate issues
what with several cable TV channels imploring those with a few million dollars kicking about to invest in 'Amazing Indonesia or whatever awkward slogan is being improperly pressed into service this month, possibly be it is time to take a look at some of the legal issues faced by foreigners who live here. Obviously, Indonesian law can be confusing to the merry group of Indonesian expatriates laugh-a-minute, a situation which is not helped by the mixed signals that were sent in the last two years, as Reformers President butts heads with some pretty powerful forces of reactionary nationalism.
Moreover, Joko Widodo Administration currently issues economic policy package after package of economic policy in order to breathe some life into the moribund boondocks Republic of Indonesia, and entire political, economic and legal landscape seems to be on somewhat shaky ground right now.
The net result of all this uncertainty seems that foreign citizens living in Indonesia started to get a little frustrated, as lying and policy flip-flops powerbrokers chicane country from one side to the other. On the one hand, foreign investment is actively encouraged and even foreign citizens are advised to own property in the country. On the other hand, many work visas were reduced from a year to six months in length, while foreign teachers are imprisoned for ten years for the use of "magic stones".
So without further ado, we have a little look at how laws and regulations are shaping up recently, with the tacit recognition that there is not often a strong correlation between what the law says and what actually happens in real life. First up can I just say a big thank you to my friends down online Hukum for their sterling support through this whirlwind tour through some of the darkest corners the Indonesian legal system.
This time, we property in the spotlight, a question of relevance to many expatriates here. So let's get down to business. Government Regulation No. 103 of 2015 on the ownership of property by foreign nationals domiciled in Indonesia aims to provide legal certainty to foreign citizens who are in possession of a valid residence permit. However, a number of limitations must be met yet.
The 2015 regulation stipulates that foreign nationals who live or invest in Indonesia may acquire property under the (pakai hak) land titles right classification for use. Articles 2 and 6 of the state of regulation that foreign citizens can hold these securities for 20 years, which can be extended to 20 years (the previous limit was a of 25 years). In addition, the 2015 regulation also makes it clear that the property owning foreign securities may bequeath right to use their heirs in case of death.
However, regional governments are likely to participate in the implementation of the 2015 resolution, which could complicate things significantly. In addition, many politicians here ultimately see Regulation 2015 as contrary to the spirit of land reform, while others see the regulation not to provide foreign citizens much in the way of something again.
The disputes between spouses of different nationalities are also likely to prove a thorny issue, the new regulation provides that any property belonging to mixed couples marriage is not marital common property which must be proven by a prenuptial agreement notarized. The team of the Indonesian defense for mixed marriages (Tim Advokasi Perkawinan Campuran Indonesia) raised a number of concerns in this regard. First comes the question of separation agreements assets between spouses and whether these documents will be required when buying or selling goods. This poses a potential problem, such as notaries currently refuse to treat domestic transactions involving foreign citizens.
Second, there is currently a lack of clarity surrounding the issue of periods of all agreements asset separation validity. That the agreements established with notaries now apply retroactively or not is the question here. Thirdly, the regulatory framework for use in the development of active separation agreements also remains uncertain. If the marriage law in 1974 to be used, or if the Indonesian Civil Code or another regulation be used? This question is important because it determines if assets separation agreements as referred in prenuptial agreements can not be established before marriage or if they can be established after the marriage, which would imply the contract principle of freedom and registration with a court.
The team of Indonesian defense for mixed marriages is currently seeking clarification on the issues of the Minister of Justice and Human Rights. Regulation 2015 on the property has the potential to provide legal certainty for mixed marriage couples, but only if it is implemented clearly and in a way that addresses these important issues.
2015 regulation is as clear as regards the price, the size of the land and the amount of goods that can ultimately be acquired by foreign citizens. The fear is that this lack of clarity can lead to the earth to become the object of financial speculation, or a potential development of the real estate bubble. Indonesian notaries and officials of the deed land (TIP - Pejabat Pembuat Akta Tanah) are also invited to examine in depth all land titles in order to avoid any potential violation of the law and violations of the limitation right to employment for foreigners seeking to own property in Indonesia.
Specifically, Core agrarian law of the country expressly prohibits any transfer of ownership by the parties that are not legitimate holders of the securities of property-property (and foreign citizens are strictly forbidden to take possession of freehold the right to over-exploit and right to build titles).
If a foreigner wants to get an official act of a PPAT regarding the sale of an inherited property, then it is best to convert the title of the property right to use in advance . acts of sale and purchase ( Akta Jual Beli - AJB) can then be established before a notary, which is to be followed by changing the ownership of the title the name of the buyer. After that, the local buyer is allowed to retain the right way to use or convert it to a freehold title. This method is more expensive, but the results will be above board and comply with the law, which finally provides that land acquired by foreign citizens under a right to exploit or right to build must be transferred or sold a local party within a year or it will be seized by the state.
For more information on these and more, point your Web browser at: en.hukumonline.com