Bert Vierstra
Do you want to own your property without the aid of an Indonesian National?Hak Pakai for foreign investorsSince March 2004 in effect in Bali:The government offers foreign investors land rights that are relevant to the nature of their business. Prospective buyers of land for any purpose should consult the local government authorities on land use, planning and zoning. Based on a Presidential Decree issued in June 1996, foreigners domiciled in Indonesia are allowed to own one residential property. To meet the regulations of ownership of a house or an apartment, a foreigner must be deemed to be "beneficial to national development" and must be either: An Indonesian resident (domiciled permanently in Indonesia) in possession of a permanent resident permitA non-resident (domiciled in Indonesia only at particular times) in possession of appropriate visit and immigration stamps in his/her passport.A foreigner can purchase or construct a house built only on land with the right of use (Hak Pakai), the right of use with the right of proprietorship, or the right of lease (Hak Sewa). An apartment can only be purchased by a foreigner on land with right of use (Hak Pakai). Foreigners are not, however allowed to purchase houses or apartments classified as "low cost housing" or "very low-cost housing" Ownership is limited to 25 years, and is extendible for another 25 years provided that the foreigner remains an Indonesian resident or meets the status requirements. If the foreigner departs from Indonesia, the property must be sold or transferred within one year after departure. If the foreigner or his family does not use the house for more than 12 consecutive years, then the foreigner forfeits the "being domiciled" status, for the purpose of owning residential property.from:[brl=http://www.bali-information.com/bali_properties_page.php?p=11:ziipobe5]Indonesian Property Laws[/brl:ziipobe5]
Petenjo
Hey Bert,I have read this statement on another web site, it brings up some interesting points. Although this is not leasehold, there are time restrictions (25 years + 25 years). Am I right in understanding that if you want to sell the land/house, any capital gains are yours?Do you have any feel for costs of setting up this structure?You're in the business Bert - I am back early Feb to hopefully nail down some property to build on later in the year. I intend to be in and out of Bali for the next fews years (work commitments elsewhere), but semi-retired within 5years. Which set up would you recommend?
Roy
I hate to "rain" on any of Bert's parades, but I am very dubious of this. For certain, I would not want to be among the first guinea pigs to try it out. I still hold as a firm belief, that unless a Bule (foreigner) is married to an Indonesian, that long term leases are the best way to go. Properly executed, these contracts have a good track record of being upheld in court, if it gets to that venue for enforcement. Moreover, laws in Indonesia can be changed far too easily. Who knows who will be the President, and what the make up of the Indonesian DPR will be in five, ten, or twenty years? Anyway, that's just me...ultra conservative when it comes to money!
Bert Vierstra
Roy, this law puts land in your own (foreigners) name. Costs involved will be the same as for a buy-sell transaction. There have already several foreign people using this structure, one of them married to an Indonesian Notary. There have also been people breaking their "nameholder" contract to use this structure. Actually its a rather old law (1996) but since a few months notaries of Bali can use it.the right of use with the right of proprietorship[/quote]You can use this just for ONE property.
Roy
I "hear" ya brother Bert...but I'm still dubious. But, with that being said, for me, I would always want my land holdings in my wife and boy's names. But, that is my own personal situation. Clearly, you know what you are doing, and you know that Bali is a small island...ergo, your name, in spite of the English mad hatter's efforts, is sterling.
factgasm
Do you want to own your property without the aid of an Indonesian National?If the foreigner or his family does not use the house for more than 12 consecutive years, then the foreigner forfeits the "being domiciled" status, for the purpose of owning residential property.[/QUOTE]I believe this should read 12 consecutive [B][I]months[/I][/B].See 'Cessation of "Residence"' on this page: balirealestateadvertiser.com under legal/owning.php(Sorry, forum rules currently prevent me from posting links).
JohnnyCool
You're "right" (about the 12 consecutive months).However, you do realise that you're responding to posts made 11 years ago.Things have changed a bit since then. The "ownership through a nominee" system is currently under the microscope.The bottom line is that it still not possible for a normal foreigner to legally own, outright, a parcel of land in Indonesia.Certain Company structures are a different matter, although expensive, time-consuming, messy, but possible.
factgasm
You're "right" (about the 12 consecutive months).However, you do realise that you're responding to posts made 11 years ago.[/QUOTE]Yes. When the regulation was introduced in 1996 the rule was 12 months and to my knowledge it has not changed since then, hence the post from 11 years ago deserved correcting.
