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Property Law

Land and property ownership for foreigners

In Indonesia it is not allowed for foreigners to own land. Possibly there will be a change in this in the near future. Only foreigners with a residence permit or a temporary residency permit and thus for a long time in the Indonesian society, can buy on basis of the renting land and buying the house. Provisional you should make a legal contract that you all you bidet protection of the legal ownership.

Meanwhile there are a number of improvements. Even foreigners who regularly visit Indonesia on business trips can now buy the land though it must comply with minimum dimensions. It is indeed possible to make good contracts, which are based on mutual benefit. The instruments should be seen as a collaboration The instruments are in Bali in detail, on the basis of the legal guidelines and advices given.

Act 1

General Act in which the non-Indonesians gives money to the Indonesian to buy  land and a house. The Indonesians will house and land in use to the non-Indonesian on a permanent basis who may use as his home. All the mail that belongs to you will be sent via him. For this the non-Indonesian will give him a allowance per month (name holder). He will receive a 2% of the sales value of land and house at any sale (for the Indonesians it is therefore an investment, without anything to pay.). The sale took word already in the contract. Ibid leasing and renovation of the property within the applicable rules. The Indonesian gives the non-Indonesian already pre permission. On the death of 1 and/or 2 this contract will be transferred to heirs. You must comply with the visa rules. It also stipulates that water, electricity and taxes on land and house should be paid by the non Indonesians. The real estate taxes are much lower than in the Netherlands or Belgium.

Act 2

It is the sale of the house, in a good description advance, in detail. The Indonesians grants you in advance for permission to sell. His permission is thus no longer needed. Foreigners in the future already seen property in use and not possess the proper certificates, almost all encounter difficulties in selling because it was not well regulated.

Act 3
This is the subletting of the property by you in detail. Through this instrument the accommodation, at the time that you are not staying, rent to a third party, which the Indonesian already gave permission through this third act. Legal guidelines should be in respected.

Act 4
This reserve instrument was intended as the underlying 1, 2 and 3 because of unforeseen circumstances be dissolved.

Suppose: the Indonesians (or heirs) know the right to do this, then it will reserve the right instrument for you. In this document it is also possible that the Indonesians you simultaneously with the sale even gives permission for renting the house for 75 years, beginning immediately after signing the instrument.

In this document you will also find the passage that, if the law change in Indonesia and foreigners to own real estate name, the Indonesians will contribute to transfer his property to you. All four instruments are made simultaneously and at that moment in power.

The above scheme gives you decide a proper and safe multiple legal protection. Moreover, there is further regulated that you keep the ground certificate. This Act is required if you decide to sell. Without this instrument it cannot be sold.

Indonesian Nationality
A person with the Indonesian nationality may be independent where he or she lives, Indonesian land in buying property, unless that person with an Indonesian person not married. In the latter case, this person has no basis in Indonesian property purchase.

Do you as an Indonesian already own land and you marry an non-Indonesian person. In line with legislation you get from the date of marriage a year to sell your possession. If you do not sell it within this timeframe it will fall in possession of the state.