Thread: Letting out property (rentals etc)

As a newbie to the forum, what's the licensing, certification procedures (to keep things legal) for the following:-

Assume a property with 2-3 bungalows on it )mix 1-2 bedrooms each), assume that at some stage in the year all are available for day, week, month or annual letting.

What licenses are required (to avoid being dobbed in):
I've seen various definitions: Hotel, homestay etc -
- at what point does a homestay become a hotel?

Alternate scenario: a single 2 bedroom bungalow - rented out (day, week, month or annual let) - does that need a specific license? Strictly speaking of course

Also are there any official 'guidelines' or requirements for rentable property - I know in thie UK (please don't laugh!) property to-let must comply with a bunch of regulations like: extractor fans in toilets, fire-safe furniture, special landlord insurance... (etc)
Any local equivalent?

I know that what goes under the table stays under the table - it is useful to know the height of the table to begin with

Thanks

a homestay doesn't have a restaurant..
also a homestay, well the license to operate needs to be in a name of an indonesian and to get that license the property needs to have been build with an IMB.

business-wise, if you want it to be in your own name, that would mean setting up an PMA, and therefor you could only apply for a hotel-license.
this PMA can also sponsor your KITAS, so you would be able to legally work for the hotel.

for the guesthouse, a CV or PT needs to be set-up (indonesian nominee) but this CV or PT can also sponsor your KITAS to work for the guesthouse.


I am sure there sort of guidelines, to what does a property need to have in facility's to be called a resort or 3/4/5 star hotel..and some guesthouses use something called 'melati' rating
1 melati or 2 or 3...think sort of comparable with the star system, but as to what the requirements are... I have no idea...
maybe (probably is/are) another member can help you out here..
friendly greetings, gilbert.

Thanks a million, guys - good clarification form both of you

Originally Posted by gilbert de jong

a homestay doesn't have a restaurant..
business-wise, if you want it to be in your own name, that would mean setting up an PMA, and therefor you could only apply for a hotel-license.
this PMA can also sponsor your KITAS, so you would be able to legally work for the hotel.

for the guesthouse, a CV or PT needs to be set-up (indonesian nominee) but this CV or PT can also sponsor your KITAS to work for the guesthouse.

Ok I'm not up to speed with the Indonesian TLA s (three letter acronyms) does PMA mean setting up a PT company - or is a CV or is a PT that!!! (I did say I was a newbie!!!)

As I understand a PT company has to have a 50% local shareholding - though 3-4 years ago that was 90% (+?)

I've heard that a PT company is a possible alternative to Haik Malik .... or is that just lining up a whole other set of problems?

Finally
BAck to scenario A: several bungalows (no restaurant) on a single HM property with ironclad IMB (see.. I'm using a 2LA - I'm learning! I'll soon be up to three ) each rented out as individual units... how's that classified? From the ads. there seem to be lots of people playing that game

Hello,
Here are some useful links that i highly suggest reading:
Doing Business in Indonesia - World Bank Group
Company Establishment and Foreign Direct Investment in Indonesia - Information for expatriate businesses
i also advice you to use the search option on the forum, there is some amazing content that you don't want to miss.

With little research on the internet i found this for you:
Type of companies that you need to look at:

1) (Commanditaire Vennootschap)-CV Indonesian Company - This Indonesian company formation must be registered in the name of an Indonesian citizen (director). The main difference between a CV and a PT company is that a CV company is not a limited liability company

2)(Penanaman Modal Asing)]-PMA Indonesian Foreign Owned Company - This Indonesian company formation can be registered in the name of a non-Indonesian citizen and offers the foreign national direct ownership and director title. The PMA Company is a limited liability company and offers limited liability protection for foreign national director. The PMA Company awards full ownership, full business rights and full asset ownership directly to and in the name of the foreign national director.

3) (Perseroan Terbatas )-PT Indonesian Company - This Indonesian company formation must be registered in the name of an Indonesian citizen (director). PT companies are limited liability companies.

Concerning scenario A:
Let's define several as 12 bungalows for now, if that is the case than you can run them under two separate Guest house licenses. this means you need two nominees, 1 for each guest house licence. And to run them you need a residence permit + working permit as Gilbert mentioned above.

Alternate scenario: a single 2 bedroom bungalow - rented out (day, week, month or annual let) - does that need a specific license? Strictly speaking of course

Also are there any official 'guidelines' or requirements for rentable property - I know in thie UK (please don't laugh!) property to-let must comply with a bunch of regulations like: extractor fans in toilets, fire-safe furniture, special landlord insurance... (etc) Any local equivalent?

A lawyer/notary is the best person to consult. From my experience/knowledge you need a Pondok Wisata license. I think this license covers you for up to 5 rooms. I have seen budget places and 400 euro per night villas all have the same license. Most businesses hang their certificates in the reception area so you can check this out for yourself.

Government officials will come to check the property out before granting the office but you don't have to follow any of the kinds of regulations you would in western countries.

ok im keep this simple basically you need the IMB, PT ( cuz you cant get a kitas on a CV anymore) or PMA you can only hold 99% of share the other 1% must be held buy a loka (pay more tax that why a lot of people dont do it ) and also you will need PONDOK WISTA (rental Permit) for more info it's better if you ask a notarist best notarist on the island that deal with a lot of expat is ibu ulce here the number for her office (0361) 767561. Also if you are going to rent out your place and want to work with an agent please PM me or email me at lokalliving@gmail.com
hope this info helps you and good luck.

hey yeah she is a bit hard to get off because a lot of expats do use her but you can trust the work done by them is alway 100%. my boss started up the company lokal living through her. if he did through anyone els it would have take twice as long and twice as much money. If you getting 20% less you maybe paying it somewhere els, that the thing about cheaper notrist.