Land lease & bilingual documents

spicyayam

Well sometimes it is the investments you don't make that are the best. Unfortunately a few people get caught up in the excitement and make poor decisions that they probably wouldn't have made in their own country. One thing my wife does is to go through the final contract/agreement line by line with her clients, before they sign it. There is usually not enough time to do a written translation. I know of a case where a local was selling their property and the notary left a zero off of the sales price. They were in rush and didn't check it properly when they signed the agreement and got quite a shock when the money hit their account. It took them some time in courts (and money) fighting the sale.

spicyayam

[USER=20318]@SandyS[/USER] I just spoke to my wife and she said it is possible to make bilingual contracts. For notaries you must use the one in the regency of the property.

SandyS

spicyayam wrote[USER=20318]@SandyS[/USER] I just spoke to my wife and she said it is possible to make bilingual contracts. For notaries you must use the one in the regency of the property.

That's good news, thank you:)

SandyS

Hi everyone! Thanks all expats for sharing your experiences and knowledge on Bali on this forum. It matters a lot! Just joined as I am looking to a potential investment in Sumba. The plan is to find a place I love, work hard on the due diligence to see if the place loves me too (land certificates, IMB, road access, adat and community), built my villa and business with 3-5 rooms for renting to tourists (if Pondok Wisata can be given to a foreigner for ONE property) OR set up a PMA and build 5-12 bungalows over time). I guess most of the legal work will be done in Bali though. Having done my due diligence (via online searches so far), I still have many question marks and would appreciate your advice and recommendations based on your experiences in Indonesia. 1. Land acquisition/lease process: I noticed people on the forum mentioning that the documents to be signed at Notaris are always in Indonesian (acc. to legislation in force) and the (unofficial) translations are often inaccurate which translates into a high risk to the foreign party. Even though the Indonesian version shall prevail in Court, are bilingual documents accepted by a Notaris in a transaction (left column in Indonesian, right column in English)? 2. Are there certified translators/translation companies that one can use for translations of legal documents? (certified by a signed statement by the translator or translation company affirming that the translated text is an [B]accurate and complete rendering [/B]of the original document)? 3. In the activity object of PMAs is there such an option as commercial/resort for instance which would include: accommodation, F&B/restaurant, and spa services without having to commit to triple the mandatory investment (10 bil x 3)? Where can I find the official link for company incorporations even if it's not in English? 4. Can you please share any recent links to trusted law offices (checked the US embassy PDF, but have doubts with that list) as I need a legal advisor to guide me through so that I am fully aware of the implications of my decision (residence = low financial commitment but also no ROI if I can't rent some rooms legally, or resort = PMA big financial impact on my budget)? Thanks much:)

spicyayam

These are really good questions. Many people go into these kinds of deals using blind faith often with disastrous results. I would be happy to try and answer your questions from my own (limited) knowledge. My wife is a lawyer in Bali and while I am not involved in her business, she does tell me about some of the things that happen and inevitably go wrong because they didn't get good advice.

are bilingual documents accepted by a Notaris in a transaction (left column in Indonesian, right column in English)

I have never seen this and I don't believe this is possible unfortunately. One of the first documents I signed in Indonesia was translated using the notaries translator and I think Google translate would have done a better job.

Are there certified translators/translation companies that one can use for translations of legal documents? (certified by a signed statement by the translator or translation company affirming that the translated text is an accurate and complete rendering of the original document)?

There are official translators, like say if you need a document translated into English from Indonesian which say the embassy requires. I have not heard of "official" translations of documents in Indonesian into English. And this obviously can lead to big problems... I have seen whole sentences/paragraphs left out of the English version of documents.... Another potential problem is the notary prepares the documents in Indonesian. You get them translated into English and you believe you understand what is going on. Since notaries work for both seller and buyer, they take requests from both sides. So what can happen is after you have the document translated, the seller calls up the notary and asks for something changed. The notary is busy or doesn't think it is important to inform you. So you have no idea what is going on. On the day of the transaction you sign the new documents without knowing what changes have been made, only later to realize the English translation is different to the document you signed.

In the activity object of PMAs is there such an option as commercial/resort for instance which would include: accommodation, F&B/restaurant, and spa services without having to commit to triple the mandatory investment (10 bil x 3)? Where can I find the official link for company incorporations even if it's not in English?

I am not an expert, but I believe you will just have the one company. You will make the PMA for a hotel and can run a restaurant, bar under this. I know this is possible. Not exactly sure about the spa. But I think basically you have the one company and then apply for separate licences restaurant, alcohol etc. Ok, I am biased but I think my wife is pretty good at what she does. She talks straight, fees are reasonable and if she sees a problem, will let you know. She is also not afraid to speak her mind to people in authority. You can contact her through her site: https://www.balilawyer.net/

SandyS

These are really good questions. Many people go into these kinds of deals using blind faith often with disastrous results. I would be happy to try and answer your questions from my own (limited) knowledge. My wife is a lawyer in Bali and while I am not involved in her business, she does tell me about some of the things that happen and inevitably go wrong because they didn't get good advice. You can contact her through her site: https://www.balilawyer.net/

Thanks very much indeed for all your answers and recommendations. It looks like I really have to think long and hard whether I want to do business in Indo or not, because I am not comfortable with signing anything that I don't fully understand, particularly as it has big financial implications. Bilingual contracts seem a natural choice in that context. I will check the website of your wife. Thanks.