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Indonesian regulations on foreign ownership

December 26, 2015 | Bali property, Blog

Indonesian regulations on foreign ownership – For many years foreigners has no right to own the land in Indonesia . After 1990 , foreigners has new right to own an apartment and office in Indonesia, but not owning the land status, this is must as a strata title land certificate .

Indonesian regulations on foreign ownership

Indonesian regulations on foreign ownership

TENTANG PERATURAN DASAR POKOK-POKOK AGRARIA ) Indonesian law about Agrarian . Herewith in Global resume :

Clause 16
The land Rights :
a. hak milik,
b. hak guna-usaha,
c. hak guna-bangunan,
d. hak pakai,
e. hak sewa,
f. hak membuka tanah,
g. hak memungut-hasil hutan,
h. hak-hak lain yang tidak termasuk dalam hak-hak tersebut di atas yang akan ditetapkan dengan
Undang-undang serta hak-hak yang sifatnya sementara sebagai yang disebutkan dalam pasal 53.

Clause 21
(1) Only Indonesian citizens can have property rights.
(2) By the Government defined the legal entities that may have property rights and terms.
(3) The foreigners who after the entry into force of this Act property rights due to inheritance without
will or mixing property due to marriage, as well as citizens of Indonesia
have the right to belong to and after the entry into force of this Act shall lose his citizenship
relinquish that right within a period of one year from obtaining such rights or loss
citizenship that. If after that period the past property was removed, then the right
The void due to the law and the soil falls to the State, provided that the rights of parties
Another burden persists.
(4) For a person in addition to their Indonesian citizenship having foreign citizenship
then he can not have ownership rights and the land with him apply the provisions of paragraph (3)
this article.

Clause 42
Which may have the right to use is:
a. Indonesian citizens;
b. foreigners domiciled in Indonesia;
c. legal entities established under Indonesian law and domiciled in Indonesia;
d. foreign legal entities which have representatives in Indonesia.

Indonesian regulations on foreign ownership ( Based on Agrarian law no.5 1960 ) states that foreigners who reside in Indonesia, or visit the country regularly for business purposes, can purchase a home, apartment or condominium as long as it isn’t a part of a government-subsidized housing development. The foreigners can only hold land-use (hak pakai) Right to Use, and the development holds the “Hak Pakai” (Right To Use). The length of these titles varies as well. It is means that foreigners can effectively lease (not truly owning) an apartment for up to 70 years, but not a free standing house (House on the land). Within this the period, foreigners must also periodically renew their right to use. The initial Hak Pakai period is for 25 years, then is renewed for an additional 25 years and finally a 20 year period. Totally 70 years .

Indonesian regulations on foreign ownership

From the 1960 Agrarian law , while until 1996 the Agrarian law has changes, several Clause has changes, based on PERATURAN-MENTERI-NEGARA-AGRARIA-NOMOR-7-TAHUN-1996 ( Permen No. 7 _ 1996 about TERMS OF DWELLING HOUSE OWNERSHIP OR DWELLING BY FOREIGNERS . Herewith in Global resume :

Clause 1
(1) The foreigner whose presence in Indonesia to benefit the development nationwide can have a residence or residential house in the form of home the rights to certain land or apartment units were built on land Right to Use on State lands.
(2) The foreigners referred to in paragraph (1) is a foreigner who has and maintaining economic interests in Indonesia by implementing Investing to have a residence or residential home in Indonesia.

Clause 2
(1) Ownership of homes and way of acquisition of land by foreigners can be done with :
a. buy or build a house on land with Right to Use on State lands or the right to use land rights;
b. buy apartment units built on the land at Right to use at land Country;
c. buying or building a house on land or Right Properties Rent To Building on the basis of a written agreement with the owner of land rights concerned.
(2) The house can be built or purchased and apartment units that can be purchased by foreigners with rights to the land referred to in subsection (1) is homes or apartment units that are not classified as a simple house or very simple house.
(3) Acquisition of land and / or houses or Right Upper apartment units, granting right to use land Property Rights and Entitlement Rent For Building as referred to in paragraph (1) shall be conducted according to the procedures in accordance with laws and regulations that apply to legal actions concerned.

On clause 3 , the property can rent when the owner not in Indonesia . and the Clause 4 is The rights of the property can execute or repealed from foreigners when they are not using the home for a period of twelve months continuously . You may download the Indonesian regulations on foreign ownership bellow :

Read also my article : How to buy a property as a foreigners .

Thanks for your kindly attention about Indonesian regulations on foreign ownership, i hope my article can use to foreigners when Owning the property based on Indonesian Law, if you have any comment, please share bellow :

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