This is a simple explanation of buying property in Indonesia....
https://www.justlanded.com/english/Indonesia/Indonesia-Guide/Property/The-buying-process
From the above this is what is known as the so-called 'nominee' title.....
Through an Indonesian representative - It is common for an Indonesian representative to serve as an intermediary and acquire land for the purchaser. [COLOR=#ff0000]Ownership of the land therefore passes from the previous owner to your representative.[/COLOR] For the buyer’s safety, three agreements must be met with the Indonesian representative. They are as follows:
There is no doubt that the 'nominee' owns the hak milik title...the foreigner's name doesn't even appear on the title deeds (Sertipikat Tanda Bukti Hak). It IS a requirement that the nominee declares the property as an asset and he could be questioned if he receives taxable income from this asset...if he doesn't then no illegal act has been committed.
The three agreements are just that...notarised agreements between two people..(Akta Pernyataan). If there is a dispute I doubt those agreements would offer much consolation to the foreigner and the property would still belong to the WNI 'nominee'....it really needs trust.
There have been challenges....a recent being an Indonesian actor who fraudulently, using a corrupt notary, transferred the 'nominee' to himself, and sold half the land. The foreign owner civilly sued and the title was re-transferred back to the original 'nominee'. Not sure if the foreigner got any money but, in principle, he won.
Now the actor is waiting for a criminal trial judge to decide if he is guilty of fraud and maybe go to jail.
As nydave has pointed sometimes a politician wants to make a name and jumps on this bandwagon...the last bigmouth was adamant but, to my knowledge, nothing has ever come about it unless they explicitly change the constitutional law.....and that will have to be done by parliament.
Changing the law to prevent speculators buying foreign property is not just in Indonesia. Switzerland did it and foreigners could only sell their ski-chalets to Swiss...prices fell.
Property in my home town, Vancouver, has risen dramatically over the past few years, fuelled by Chinese purchasers. Now the Chinese Gov't has curtailed sending their currency out of the country and denied to mortgage foreign property. Hopefully, this will draw down the prices and I can return...
