🍸 Peraturan Real Estate Indonesia

ImplementasiPernyataan Standar Akuntansi Keuangan (PSAK) 71, 72, dan 73 sesuai dengan Dewan Standar Akuntansi Keuangan (DSAK) yang mengadopsi International Financial Reporting Standars (IFRS) mulai 1 Januari 2020 diprediksi bakal berdampak terhadap pelaporan kinerja keuangan beberapa emiten. PSAK 71 mengatur dan memberi panduan tentang pengakuan dan pengukuran instrumen keuangan, selanjutnya Selama2,5 tahun saya bekerja bersama tim insinyur, dari pihak pemilik, hingga dengan pihak operator. Fortunately, Cornell terkenal sekali dengan School of Hotel Administration nya. Mereka punya program S1 dan S2 dengan Minor in Real Estate. Jadi saya mengambil banyak mata kuliah real estate dibawah departemen mereka. IndonesiaReal Estate Indonesia membuka diri bagi investor asing untuk menyambut segala hal mulai dari perusahaan, pembeli properti, dan investor saham , yang ppndari anggota real estate indonesia - Ortax 1873 Pasal5 ayat 1 Peraturan Pemerintah Dalam Negeri Nomor 5 Tahun 1974: Anggota Real Estate Indonesia dalam melaksanakan usahanya senantiasa menempatkan dirinya sebagai perusahaan swasta nasional yang bertanggung jawab, menghormati dan menghargai profesi usaha real estate dan menjunjung tinggi rasa keadilan, kebenaran dan kejujuran. PemetaanMasalah Sesuai Elemen Siklus Pengelolaan Aset. Sesuai hasil riset dan pemeriksaan BPK tersebut, perlu dilakukan pemetaan masalah untuk mengetahui hal-hal yang kerap muncul sehingga lebih dapat ditentukan prioritas penyelesaiannya. Mengingat elemen siklus pengelolaan aset telah diatur dalam Peraturan Pemerintah Nomor 27 Tahun 2014 Menurutperaturan perundang-undangan di indonesia, pengertian mengenai industri real estate tercantum dalam PDMN No.5 Tahun 1974 yang mengatur tentang industri real estate. Dalam peraturan ini pengertian industri real estate adalah perusahaan property yang bergerak dalam bidang penyediaan, pengadaan, serta pematangan tanah bagi keperluan usaha ofproperty and real estate companies listed on the Indonesia Stock Exchange in 2014-2017. Good corporate governance is defined by variables consisting of managerial ownership, institutional ownership, audit committee, independent Peraturan CSR di Indonesia tentang tanggung jawab sosial perusahaan diatur dalam Undang-Undang No. 40 tahun JikaAnda mengunjungi versi bahasa Inggris kami, dan ingin melihat definisi dari Peraturan agen real estat dalam bahasa lain, silakan klik menu bahasa di bagian kanan bawah. Anda akan melihat arti dari Peraturan agen real estat dalam banyak bahasa lain seperti Arab, Denmark, Belanda, Hindi, Jepang, Korea, Yunani, Italia, Vietnam, dll. 2RW0d. What is included in the term “real estate”? Indonesian law and regulations do not specifically use the term “real estate.” However, the term real estate in the Indonesian language includes the following Land Any buildings or structures on it Generally, buildings or structures on land are also owned by the land owner. However, Indonesian land law acknowledges the horizontal land separation principle asas pemisahan horizontal, where buildings or structures on a land are not part of the land, ie, the rights over the land does not automatically cover ownership over the buildings or structures on it. What laws govern real estate transactions? Real estate in Indonesia is covered by land laws. In Indonesia, the government holds title to all land under Law No. 5 of 1960 on Basic Agrarian Provisions the “Agrarian Law”. Generally, anyone who wants to use land must obtain a land title from the government. Most land titles have fixed validity periods. Where applicable, the validity period of a land title may be extended after the holder of the land title has met the extension requirements and there are no zoning changes or other public interest requirements. Other than the Agrarian Law, land in Indonesia is regulated in various government regulations and decrees/regulations issued by the State Ministry of Agrarian or Chair of the National Land Agency Badan Pertanahan Nasional the “Land Office”. Some of these regulations are Government Regulation No. 40 of 1996 on the Right to Cultivate, Right to Build and Right to Use Government Regulation No. 103 of 2015 on Property Ownership by Foreign Citizens Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency issued Regulation No. 29 of 2016 on Procedure for Granting, Releasing, or Transferring Land Rights over Residential Houses to Foreign Nationals in Indonesia Government Regulation No. 24 of 1997 on Land Registration “GR 24/1997” Law No. 20 of 2011 on Apartments What is the land registration system? Indonesia’s land registration was initially based on a system commonly known as “registration of deeds.” After the Agrarian Law was enacted in 1960, Indonesia adopted a system known as “registration of title” because i land registrations are recorded in a land registration book at the relevant Land Office; and ii land title certificates are issued to serve as strong evidence of ownership to land. However, the Land Office does not provide a guarantee on the status of the land being registered as land certificates do not construe absolute evidence of ownership, ie, a land certificate may be cancelled if other parties can prove in a court of law ownership over the plot of land title that the land certificate covered. GR 24/1997 provides that a certificate is a proof of rights which serves as strong evidence of the physical and juridical data stated therein, as long as the physical and juridical data is in accordance with the data stated in the related measurement letter and land registration book. In brief, the process for issuing a land certificate is as follows Once all requirements to obtain a land title have been fulfilled, the relevant Land Office will issue a decision letter on the granting of a new land title After the granting of the new land title, the new land title holder will need to register the land, and the land title certificate will be issued by the regional Land Office The issuance of a land title certificate will occur after the company/individual pays the administrative fees in relation to the issuance of the land title which can be substantial depending on the circumstances and the land acquisition duty Bea Perolehan Tanah dan Bangunan at a rate of 5% of the estimated value of the land determined by the government Which authority manages the registration of titles? Land title registration is managed by the Land Office having jurisdiction depending on size and where the land/premises is located. What rights over real property are required to be registered? According to the Agrarian Law, the main types of registered land titles are Right to own Hak Milik “HM” HM is the strongest and fullest/highest hereditary right that may be held with respect to land. HM does not have aby time limit and can only be owned by Indonesian citizens individuals and some entities determined by the government eg, social and religious institutions. Other Indonesian corporate entities and foreign citizens may not own land with HM. If business entities want to obtain this HM, the HM must consequently be converted into a title that can be owned by the entity which intends to acquire it. Right to cultivate Hak Guna Usaha “HGU” HGU title is the right to cultivate land which is administered by the state HGU can only be used for agriculture, plantations, fisheries and/or poultry farming.[1] HGU can be granted for a maximum of 35 years and can be extended for an additional maximum of 25 years. A holder of HGU can also renew this land right for a maximum subsequent period of 35 years after the term of the extension expires. HGU may be granted only to i Indonesian citizens; and ii Indonesian corporate entities that are domiciled in Indonesia, including PT PMA. Right to build Hak Guna Bangunan “HGB”; HGB title is a right to establish and construct buildings on a plot of land. Similar to an HGU title, and HGB title may be encumbered for security purposes. HGB is granted for a maximum period of 30 years and can be extended for an additional maximum period of 20 years. A holder of HGB can also renew this land right for a maximum subsequent period of 30 years after the term of the extension expires. HGB may be granted to i Indonesian citizens; and ii Indonesian corporate entities established under Indonesian law and domiciled in Indonesia, including PT PMA. Right to use Hak Pakai “HP” The Agrarian Law defines HP as the right to use and/or collect the products from the land directly administered by the state. The land on which HP title can be granted includes state land, the HM and right to manage Hak Pengelolaan "HPL" land. This means that HP title can be created on top of these land titles HM and HPL and is not a title to the land itself. HP may be owned by any of the following Indonesian citizens Foreigners residing in Indonesia Corporate bodies established according to Indonesian law and domiciled in Indonesia Foreign corporate bodies with representatives in Indonesia Departments, non-department government bodies and regional governments Foreign country representatives and international organization representatives Religious and social institutions Based on the regulations, HP title is granted for a maximum of 25 years and can be extended by a maximum of 20 years except for HP title for residential property of resident foreigners see below. HP on HM land is granted for a maximum of 25 years but cannot be extended, although it can be renewed based on a new agreement between the holder of the HM and the holder of the HP. The agreement must be made before a land deed official Pejabat Pembuat Akta Tanah or a "PPAT" and the HP must be registered at the relevant Land Office. Based on the regulations, HP title is granted for a maximum of 25 years and can be extended by a maximum of 20 years except for HP title for residential property of resident foreigners see below. HP on HM land is granted for a maximum of 25 years but cannot be extended, although it can be renewed based on a new agreement between the holder of the HM and the holder of the HP. The agreement must be made before a land deed official Pejabat Pembuat Akta Tanah or a “PPAT” and the HP must be registered at the relevant Land Office. [1] Please note that in practice, this would depend on the interpretation of the Land Office. The Land Office could interpret the HGU usage broadly as “cultivation activities.” What documents can land owners use to prove ownership over real property? Land ownership may be proven using a certificate of land title. Can a title search be conducted online? Indonesia does not have a centralized database where a party can access and obtain public information on a particular Indonesian company. If a company owns land and you want to verify this, land searches can be conducted at the local Land Office where the land is located. Similar to courts, every municipality/regency in Indonesia has its own local Land Office. The local Land Office operates under the coordination of the central Land Office in Jakarta. Each Land Office maintains a land registration book that contains records of land ownership in its jurisdiction, including the land certificates issued to landowners/holders of land titles and whether the land is subject to any security/encumbrance ie, Hak Tanggungan. The land registration book is also maintained and updated manually. Can foreigners own real property? Are there nationality restrictions on land ownership? Foreigners can hold land title in Indonesia if they reside in Indonesia as evidenced by a valid stay permit “resident foreigner”. The land title that can be held by resident foreigners are limited to HP over HM, HP over state land, or HP originating from the conversion of HM or HGB. As an exception to the HP title in general, HP titles issued for resident foreigners is granted for a maximum period of 30 years and can be extended for an additional maximum period of 20 years, and may be renewed for a maximum subsequent period of 30 years after the term of the extension expires. Under the new HP related regulations, if a house or apartment currently under HM or HGB title is purchased by a resident foreigner, then the conversion of the title to become HP will automatically happen, and if the house or apartment is then transferred to an Indonesian, the title can be re-converted to a HM and HGB title. If a resident foreigner buys a residential property built on land with HGB title, the title of the residential property will be deemed to be converted into HP upon the signing of the sale and purchase document before a PPAT. The PPAT will then register the transaction at the relevant Land Office so that the Land Office can manually update the title certificate to reflect the change of the residential property from HGB to HP. For strata title apartments or HMSRS, the title of the underlying land will remain HGB title. So upon a purchase by a resident foreigner, only that particular unit will be converted into a HP strata title Hak Pakai Atas Satuan Rumah Susun. Only if all apartment units are owned by resident foreigners can the underlying land be converted to HP title. The government stipulates minimum prices for houses or apartments that can be purchased by resident foreigners depending on the location of the house or apartment. For example, in Jakarta the price of a house must be IDR 10 billion or more while for an apartment it must be IDR 3 billion or more. For the Banten and Bali provinces, the price of a house must be IDR 5 billion or more while for an apartment IDR 2 billion or more. Resident foreigners except for foreign country representatives or international agency representatives can only have one plot of land per person/family and the maximum land area is 2,000 square meters which can be increased subject to approval from the Minister of Agrarian Affairs and Spatial Planning/Head of Land Office. Can the government expropriate real property? Land titles granted by the government have a specific permitted use and the holder of the land title is obligated to use the land in accordance with the permitted use. Failure to fulfill this obligation will give the government the right to initiate a land title revocation process. Further, if the government intends to use plots of land that have been granted land titles to other parties prior to the expiry of the validity period of the land title, the government is obligated to provide compensation to the holder of the land title. How can real estate be held? Generally, real estate interest can be held under the following land titles Land ownership Land lease What are the usual structures used in investing in real estate? Direct ownership Please see above on land ownership by a resident foreigner. Otherwise, if a foreign entity wishes to invest in real estate, it needs to establish an Indonesian legal entity to own a land title in Indonesia. How are real estate transactions usually funded? Real estate transactions can be funded by the company’s internal funds or by institutional lenders such as banks. An institutional lender will likely take collateral security over the plot land in the form of security interest over a land right Hak Tanggungan. Hak Tanggungan is a security interest over a land right with or without an asset which is inseparably attached to the land in favor of the lender. Hak Tanggungan provides a preferred position over the proceeds of the sale of the land to the grantee creditor who is granted a Hak Tanggungan vis-à-vis other creditors. Who usually produces the documentation in real estate transactions? Generally, the buyer’s lawyer will prepare the documentation related to the acquisition of real estate. To transfer title due to sale and purchase, exchange, grant, or in-kind contribution, the parties to the transaction must sign a title transfer deed in a form already prepared by the government, and the execution of such deed must be conducted before a PPAT who is licensed to practice in the area where the land is located. Can an owner or occupier inherit liability for matters relating to the real estate even if they occurred before the real estate was bought or occupied? As a general rule, the new owner does not inherit liability for matters that occurred prior to it holding title to the real property. With respect to taxes imposed on the land and building, the land law and its implementing regulations require those taxes to be settled prior to a transfer of title. Does a seller or occupier retain any liabilities relating to the real estate after they have disposed of it? As a general rule, the seller retains historical liabilities relating to the real estate after they have disposed of it. Home » Practical Information » Housing Forum Buying Property in Indonesia This page is generously sponsored by Villas of Bali. For many years Indonesia has decreed that land in Indonesia can only be owned by Indonesian citizens. Thus, if you want to buy a house as a foreigner, this would have been legally impossible. In the late 90s, new laws were enacted so that foreigners are permitted to purchase apartments and office space in Indonesia, IF the building has a strata title status. This enables the foreigner to own the apartment or office space but not the land on which it stands. Further laws were passed in 2010 & 2015 which may make it easier for expats to hold 70-year leases on land, but the particulars/interpretation/implementation of the law aren't always clear. In 2020, foreigners can own apartments through 30-year lease agreements with 20 year extensions; they can obtain, but not own, landed houses through leases. The long term leases held by foreigners do not come with the same guarantees/protections as Indonesian citizens, making them harder to finance through bank mortgages. Indonesian Agrarian Law, Law No. 5 of 1960, governs the ownership of land in Indonesia. In it is a category of land ownership called "Hak Pakai" which mean the right to build on/use the land. As stated in this law, foreigners are only permitted to purchase land or homes under the “Right to Use” Hak Pakai title. Paperwork for Real Estate Transactions in Indonesia Real estate transactions in Indonesia are pretty straightforward, but yet tricky, as well as interesting business practices with several aspects blended in one single deal. Real estate transactions involve various legal fields such as property law, taxation law, inheritance law, as well as family law in general. In real estate transactions, the most well-known paperwork is the sale and purchase transaction. These are all very common legal transactions. The Basic Agrarian Law in Indonesia stipulates that a sales and purchase transaction is the evidence that proves the transfer of title from the seller to the buyer. The law imposed that real estate transactions must be carried out and meet two criteria, transparent and paid in full. The legal transaction must be carried out in front of and under the supervision of an authorized officer. The law also imposed that it must be paid in full. In other words, the transaction cannot be executed, if you have any shortfall in the payment. These are the things that you need to do before you proceed with the sale and purchase of property in real estate transactions in Indonesia Property Title Background Check This is a must. No transaction can be carried-out without any formal background check of the legality of the previous title/ownership documents. In order to do this, you need to supply us with the original certificate of ownership. The legal status of the property will not be verifiable without the original document. It is very important to conduct a background check before you make any further transaction with the seller of the real estate property. This will give you sufficient information about the current status of the property, as well as its title. Based on this information you can decide whether or not you want to proceed with the sale and purchase transaction. The background check will show you if there’s any outstanding mortgage on the property. If yes, you need to make sure the owner removes the mortgage from the title first, before starting any further transaction with you as the buyer. You will also find out if the property is under any potential dispute or not. The background check is extremely important and I would not suggest proceeding with the transaction before the background check has been finalized. Seller's Information You need to obtain information from the seller with copies of the following documents Copy of Kartu Tanda Penduduk So called "KTP". If the property owner is married, you need to obtain a copy of the spouse's KTP too. Chances are, the spouse will also be required to sign the sale and purchase agreement with you. If they have no prenuptial agreement, it means the property you are buying is their marital asset, and therefore spousal consent is statutorily required. Otherwise, the transaction you're attempting is potentially illegal; Family card so called Kartu Keluarga/KK. This document shows family members of the seller; Marriage certificate, if applicable. In the event, the spouse passed-away, you need to obtain his/her death certificate. In the event the seller is divorced, you need to obtain his/her divorce verdict with the division of property - certifying the property being sold is hers or his; Original of certificate of land ownership; PBB tax payment, called SPPT PBB. This represents payment of the current of building and land tax. This document is important in order to identify the tax applicable for the transaction. You will find out how much the seller should pay, and how much tax you should pay as the buyer. Seller’s taxpayer number, so called "NPWP." Buyer's Information If you're buying the property, you need to make sure you have the following documents available for the transaction Copy of KTP. If you're married, you need to supply your spouse's KTP too. Unless, you signed a marital agreement, like a valid prenuptial or postnuptial agreement. Please contact Asep Wijaya for more details about these documents. If you're a mixed-married international couple, most likely you can't execute any transaction without this agreement; Family card. This would also be required in order to identify your legal next of kin. This document has the information on your Nomor Induk Kependudukan/NIK Residency Registration Number that will refer to your tax information. This is very important when we validate tax applicable to this transaction; Marriage certificate. We need to know your status, and how the state will treat the property under the current status, separate property or joint property. This certificate will have to come with the marital agreement, if applicable; NPWP. They need a copy of your taxpayer number in order to validate the tax applicable to this transaction. Sale and Purchase Agreement Your intention to conduct a sale and purchase transaction must be written in the form of an agreement. It’s called a Sales and Purchase Agreement SPA. Both the seller and the buyer must be present to sign the SPA. You must come with your spouse if you're married. A valid document like a marital agreement must be presented as well in the event you have a separation of property in your marriage. A prenup or postnuptial can serve as the document that you require with no assistance from your spouse. With this document, your spouse doesn't have to come with you to sign the SPA. A valid SPA must be lodged at the land registry office in order to transfer the title from the seller to the buyer. One thing you need to be aware of is payment of the current year’s taxation must be settled before the title is being transferred. A tax validation will be carried out before the title transfer is conducted. Ownership of the Property When you're purchasing land and/or a house in Indonesia, you're dealing with a seller or the representative of the seller. You must deal with the owner of the property in order to protect your future investment. The owner must have legal rights to own the property that you are interested in buying. If he has the legal rights in the property, he must have the title of ownership that can be transferrable to you as the buyer. He must be able to present his certificate of title to prove his ownership. The certificate is issued by the government of the Republic of Indonesia. The authorized government agency that is responsible for issuing a certificate of title is the Badan Pertanahan Nasional National Land Registry, also referred to as the BPN. They have offices in every major city in Indonesia. The certificate of the title if the house you are going to buy is issued by the land registry office where the property located. Property such as land, houses, and apartments are classified under the category of Immovable Property. The legal owner of the immovable property is the person whose name is printed on the title certificate. The ownership of immovable property is different from the ownership of movable property, such as cars, etc. The legal owner of this type of property is the one whose names is printed on the certificate of title. If the owner has passed away, his next of kin is the property’s legal owner. This usually consists of the surviving spouse, and his/her children. So, if the owner of the property is deceased, make sure you’re dealing with the right person. As for movable assets such as cars, the person that controls the property can be considered the owner, although you might want to check the ownership of the certificate as well. Please contact me should you wish to discuss this. The certificate of title in real estate property is strong evidence that serves as proof of ownership, as well as proof of registration from the local land registry. Article 19 of Basic Agrarian Law certifies that the government of Indonesia is conducting land registration in order to provide legal privilege to the owner whose name is printed on the certificate of title. The owner will automatically be included within the land registry database and therefore are subject to the prevailing laws and regulations in Indonesia. Purchase of Property by an Expat/Indonesian Couple The crucial preparation for purchasing property is whether or not the Indonesian spouse and the expat spouse have a prenuptial agreement for separation of property. If you do have this agreement, it would mean that the couple could legally purchase the property. This agreement must be signed BEFORE you are married. Under Indonesian law property is jointly owned after marriage, unless there is a prenuptial agreement, and this means that property owned by the Indonesian spouse also becomes the property of the foreign spouse, which is illegal according to the Agrarian Law. Therefore the property must be sold within one year of marriage to a foreigner or converted from "hak milik" right of ownership to "hak pakai" right of use which decreases the value of the property. Pasal 26 ayat 2 Transfer of Title You need to perform a title transfer when you purchase real estate. Your name must be registered as the latest owner of the property after you execute the sale and purchase agreement, and remit the payment to the seller. They will include the details of the agreement you executed with the seller of the property, as well as the date when you entered into the agreement. Your name will be noted as the current owner of the property on the certificate of title. This proceeding involves the local land registry where the real estate property is located. You will be recognized as the legal owner after the proceeding completed. Please contact me should you wish to discuss any further about this. Mortgagor Protection When you fund the purchase of the property one hundred percent, and you want to include your Indonesian spouse as the property holder, you potentially need mortgage protection. Legally, the owner of the asset is the one whose name is printed on the property certificate. If you don’t see your name on the certificate, and you did sign a prenuptial agreement, then the property belongs to the spouse. This is free from claim by any party, especially you. This is normal when the couple is of different nationalities. If you think you need to protect your original investment, then the mortgagor protection is for you. The holder of the title will not be able to sell the property without first reimbursing you for your full contribution, then the capital gain is divided evenly. Your name as the Mortgagor will be printed on the title certificate together with the Indonesian spouse’s name as the property holder. This is strong enough to give you protection of your financial interest in the assets, and to avoid you having to walk away from the marriage with nothing in hand. Purchasing an Apartment or Office under Strata Title Ownership of offices and apartments is possible through strata title deeds, but you need to be very cautious when dealing with the laws and regulations to ensure that your ownership of an apartment in a high rise building is secure. The 1996 regulation No. 41/1996 states that foreigners who reside in Indonesia, or visit the country regularly for business purposes, can purchase a home, apartment or condominium as long as it isn't a part of a government-subsidized housing development. However, foreigners can only hold land-use hak pakai deeds, and the development holds the "Hak Pakai" right-to-build deed. It's not possible for someone to have a land-use deed for a sub-unit of a right-to-build deed. The length of these titles varies as well. Therein lies some of the difficulties and unclear ownership issues. This means that foreigners can effectively lease not truly own an apartment for up to 70 years, but not a free standing house. Within this 70-year period, foreigners must also periodically renew their right to use. The initial Hak Pakai period is for 25 years, then is renewed for an additional 25 years and finally a 20 year period. Convertible Lease Agreement One way for foreigners to go ahead an purchase property despite these legal ambiguities is to sign a Convertible Lease Agreement with the apartment property management office to purchase an apartment. Basically what this agreement entails is that the foreigner may purchase the apartment, but the title is still held in the name of the developer or property management firm, or an Indonesian nominee. This lease agreement is for a definite period. The Convertible Lease Agreement states that if and when the prevailing laws and regulations permit the Lessee to become legal owner of the apartment/strata title unit, both the Lessor and the Lessee shall be obligated to sign a Deed of Sale and Purchase and the title shall be transferred to the foreign owner. If you are interested in purchasing a condominium through this type of agreement, investigate the property management company thoroughly. Many property developers have undergone serious economic pressures and construction on many properties has been postponed or canceled. Show your contracts to a bona fide lawyer to ensure that all legal implications are covered thoroughly. Further Note When asked about the legality of Convertible Lease Agreements, lawyers we consulted stated very clearly that this is a VERY BAD idea and that lawyer should never advise that you to sign a Convertible Lease Agreement. As a foreigner you are entitled to Hak Pakai and you should insist that legal property status from the apartment building or developer so that the title is in your name. With a convertible lease agreement…you are totally at the mercy of the “appointed party” and that if they decide to change their minds you do not have much of a legal case against them as the agreement that the expat has between themselves and the Indonesian "appointed party" is not really a legal document. It is best to just insist that the Hak Pakai is in your name. If the developer cannot provide a Hak Pakai document in your name, it may be because they do not have Hak Bangunan title. If this is the case, DO NOT BUY IT. Using an Indonesian Nominee/Friend to hold your Title Another way that you can purchase a condo is by paying for the property but putting the title in the name of an Indonesian citizen. Needless to say, this must be someone you trust implicitly since, according to the law, this person would be the legal owner, no matter what verbal or written agreement that you may have between the two of you. Most lawyers will advise that you should NOT do this as again you do not have any “legal” document that says the property is yours. You are REALLY putting yourself in a vulnerable position. We've heard many stories of people who have lost major investments by trusting an Indonesian "friend" with holding the title to their purchased property. Using a nominee to shelter foreign ownership of property is actually illegal in Indonesia. If investigated and pursued, the government could seize the land and the ownership would revert back to the state. Single Family Dwellings - Houses Ownership of single family dwellings faces even greater legal issues as foreigners are not allowed to own land in Indonesia. Where the home you want to purchase is part of a housing development, the developers can often work something out for you to 'purchase' a home through a long term lease agreement. One reader writes of his positive and successful experience in this matter “Basically, I hold full title to the house, in my own name. The fact that my wife is Indonesian was not considered in fact, my wife was not considered at all. She also owns property, and we could see no difference in the title and rights of mine. The developer owns the land the house is built on, and I own a 30-year fully paid up lease on the land, which by law the developer has to extend for a further 30 years on request. At that time they can charge me a nominal rent, which I can opt to pay for now at US $35 per year. I can sell or bequeath but not sub-lease the lease together with ownership of the house as I choose. The developer can sell the land, but only under the same covenants as already exist. These provisions apply to Indonesians as well, although Indonesians could purchase the land outright if the developer agreed to sell, and Indonesians could sub-lease the land if they want. If my wife was not Indonesian, and I was not residing in Indonesia for a full calendar year, in theory the state could take my house unless I could prove that reasonable efforts to sell had failed, but just being anywhere in Indonesia for one day would re-set the clock. As my wife is the sole beneficiary of my will and is Indonesian, this rule does not apply in my case. I purchased the house without finance; I'm not sure what effect there would be in title if you took a loan or mortgage to assist with the purchase. I would imagine getting a mortgage would be the hardest part for a foreigner, and the finance company would definitely retain powers to repossess in event of default. Such things are very closely regulated at home, but they probably have a lot more scope for legally lining their own pockets here. On the subject of payment, I paid the deposit in rupiah cash, because that's what the developer wanted at the time, but then he preferred dollars for the balance, so I paid dollars at a mutually acceptable rate. There are no restrictions on how you pay for a personal transaction - you could pay with groats or even goats! if you agreed upon that." Purchase of Land by a Foreign Company If a foreign company is recognized by the Indonesian government as a legal entity, the foreign investors can purchase either of the two types of land titles, Right to Build Hak Guna Bangunan, is valid for 30 years and can be extended for another 20 years, and/or Right to Use Hak Guna Usaha, which is valid for 35 years and can be extended for 20 years. By Indonesian agrarian law a foreigner cannot legally own land in Indonesia. If someone is telling you that you can ... buyer beware ...! As a Jakarta Expat article put it "The 1960 Agrarian Law states that Indonesia’s land is a “gift from God” to the Indonesian people and the nature of this relationship is eternal. The land is a “national treasure” to be controlled by the state for the maximum prosperity of the people." If a foreigner chooses, he/she can own land 'indirectly'. To do this you need to have an agreement between the foreigner and an Indonesian, signed with the witness of a notary public. In the agreement the Indonesian is the 'legal owner' while acknowledging that the foreigner is the 'rightful owner' of the land and thus the Indonesian owner would carry out any instructions from the foreigner regarding the land, including selling the land at certain price with the funds to be paid to the foreigner owner. Again, if the Indonesian "owner" changes their mind, you will not have any legal title to the land. It is clear, as well, that these types of agreements are NOT at all enforceable under Indonesian law and the foreigner is at risk in the true ownership of his investment. We do NOT advise entering into this type of agreement! All land titles within Greater Jakarta DKI are subject to the conditions of Presidential or Governor's decrees. Essentially, this affects the provisions for Hak Milik titles in the Jakarta DKI area. Special Provisions for Batam The rules for property ownership by foreign nationals in Batam fall under Decree No 068/KPTS/KA/III/1999. This regulations states that foreign nationals or companies are permitted to 100% own residential or commercial property in the Barelang area Batam, Rempang and Galang. The only properties excluded from this decree are low cost and very low cost housing, but includes all other types of building structures. Even though there is a “special provision” for the special economic zones in Batam and Kalimantan, the land law still falls under the “Hukum National” Indonesian national law and the same overall laws and principals still apply, no matter where you are in the country. Hak Guna Bangunan vs Hak Milik Hak Guna Bangunan is only the right to use a building for a certain period of time and then has to be extended. The owner of HGB land is the Indonesian government. HGB is also translated as - Conditional Corporate Ownership. Only with Hak Milik do you actually own the land or building. Hak Milik does not need to be extended. Hak Pakai allows you the use of the facilities, but not the ownership. Hak Pakai is also translated as - Conditional Ownership. Obtaining a Loan from an Indonesian Bank to Purchase Property The Indonesian banks will NOT lend money to property owners that only have Hak Pakai status for their property. The land title MUST be Hak Milik in order for the bank to use the title as collateral. Therefore, expats have traditionally not been able to get loans to purchase property in Indonesia, because they cannot have Hak Milik titles. This applies to everyone....even Indonesians. The normal length on house loans in Indonesia is five years, not 20-30 years as it is in the west. Reporting of the Purchase to the Money Laundering Watchdog Agency Beginning in March 2012, all property developers in Indonesia must report the purchase of residential properties valued at over US$55,000 to the Financial Transaction Reports and Analysis Center PPATK. This agency is the government's money laundering watchdog. The goal of this new regulation is to deter money laundering from official corruption that was going on through the purchase of luxury residences and condos. Indonesian Agrarian Law Undang Undang No. 5 Tahun 1960 Tentang Peraturan Dasar Pokok Agraria. Pasal 21 1 Hanya warga-negara Indonesia dapat mempunyai hak milik. Only Indonesian citizens can have a hak milik - free hold land title 2 Oleh Pemerintah ditetapkan badan-badan hukum yang dapat mempunyai hak milik dan syarat-syaratnya. The Government is to determine which corporate bodies can have a hak milik and the conditions for it. 3 Orang asing yang sesudah berlakunya Undang-undang ini memperoleh hak milik karena pewarisan tanpa wasiat atau percampuran harta karena perkawinan, demikian pula warga-negara Indonesia yang mempunyai hak milik dan setelah berlakunya Undang-undang ini kehilangan kewarga-negaraannya wajib melepaskan hak itu didalam jangka waktu satu tahun sejak diperolehnya hak tersebut atau hilangnya kewarga-negaraan itu. Jika sesudah jangka waktu tersebut lampau hak milik itu dilepaskan, maka hak tersebut hapus karena hukum dan tanahnya jatuh pada Negara, dengan ketentuan bahwa hak-hak pihak lain yang membebaninya tetap berlangsung. A foreigner who, following the enactment of this Law, acquires a hak milik by way of inheritance without a will or by way of joint ownership of property resulting from marriage and an Indonesian citizen holding a hak milik who, following the enactment of this Law, looses Indonesian citizenship is obliged to relinquish this right within one year following the date the hak milik is acquired in the case of the former or following the date upon which Indonesian citizenship is lost in the case of the latter. If following the expiry of the said time period, the right is not relinquished, then the said right is nullified for the sake of law and the land falls to the State with the proviso that the rights of other parties which encumber the lands remain in existence. 4 Selama seseorang disamping kewarga-negaraan Indonesianya mempunyai kewarga-negaraan asing maka ia tidak dapat mempunyai tanah dengan hak milik dan baginya berlaku ketentuan dalam ayat 3 pasal ini. As long as one with Indonesian citizenship concurrently holds foreign citizenship, he/she cannot have land with a hak milik status, and the provision as meant in paragraph 3 of this article should apply to him/her. Pasal 26 2 Setiap jual-beli, penukaran, penghibahan, pemberian dengan wasiat dan perbuatan-perbuatan lain yang dimaksudkan untuk langsung atau tidak langsung memindahkan hak milik kepada orang asing, kepada seorang warga-negara yang disamping kewarganegaraan Indonesianya mempunyai kewarga-negaraan asing atau kepada suatu badan hukum kecuali yang ditetapkan oleh Pemerintah termaksud dalam pasal 21 ayat 2, adalah batal karena hukum dan tanahnya jatuh kepada Negara, dengan ketentuan, bahwa hak-hak pihak lain yang membebaninya tetap berlangsung serta semua pembayaran yang telah diterima oleh pemilik tidak dapat dituntut kembali. Article 44 1 A person or a legal entity has the right to rent land, if he has the right to use other people's land for building needs, by paying the owner an amount money as rent. [explanation the right of lease to build is the right owned by a person or legal entity to establish and own a building on land belonging to another person by paying a certain amount of rent and within a certain period of time agreed by the land owner and the holder of the lease right to build. ...the rent payment can be made once or at certain times or before or after the land is used. However, it needs to be emphasized that this land lease agreement cannot be accompanied by elements of extortion. If you look at Article 368 paragraph 1 of the Criminal Code, the elements of extortion can be in the form of unlawfully benefiting oneself or another person, forcing someone with violence or threats of violence to give something goods or to make debts or write off receivables.] 2 Rent payments can be made a. once or at any given time; b. before or after the land is used. 3 The land lease agreement referred to in this article may not be accompanied by conditions that contain elements extortion element. Article 45 Those who can become lease holders are a. Indonesian citizens; b. foreigners domiciled in Indonesia; c. legal entity established according to Indonesian law and domiciled in Indonesia; d. a foreign legal entity that has a representative in Indonesia. [Explanation ...the land owner surrenders his land in a vacant condition to the lessee with the intention that the lessee can construct buildings on the land. Therefore according to the law the building belongs to the tenant, unless there is another agreement...The lease right may only be held to construct a building. ...Lease agreement of right to rent to build occurs with a written land lease agreement between the land owner and the holder of the right of rent to build. To guarantee the legal force of the agreement, a deed can be made from the notary PPAT and registered with the Head of the local District/City Land Office. The holder of a lease right to build is not allowed to transfer the lease right to another party without the permission of the land owner. Violation of this prohibition can result in the termination of the leasing relationship...]] Also, Read the full 1960 Agrarian Law Read the 1996 law in Bahasa Indonesia - Peraturan Pemerintah Republik Indonesia Nomor 41 Tahun 1996 tentang Pemilikan Rumah Tempat Tinggal atau Hunian Oleh Orang Asing yang Berkedudukan di Indonesia Lost Civil Registry Documents If you lose important Civil Registry documents there will be a procedure at the Catatan Sipil office which will help you to obtain new documents. Check with the Catatan Sipil office in your area. A recent poster on the Expat Forum stated that these documents were needed to replace his deed Terms and Procedures for Management of Damaged or Lost Civil Registry Deed To duplicate the lost deed quote by bringing the following requirements *Statement letter damaged/lost from the person concerned *Certificate of loss Surat keterangan kehilangan from the local police *Photocopy of the lost deed *Resubmit the original damaged deed quote *Photocopy of KK and KTP *Court Decision regarding Change of Name or gender *Immigration Documents only for foreign nationals *The applicant submits request for a duplicate of the Civil Registration Deed *Registration officers verify and validate population data *The registration officer makes a duplicate of the Civil Registration Deed Quotation as well as makes a margin note on the Civil Registration Deed Quotation *The registrar records into the population database *The Head of Service signs and issues a duplicate of the Civil Registration Deed Quotation *Applicant receives a Civil Registry Deed Quotation Related Articles Flow Chart presentation regarding rights of married couples - foreigners/Indonesians to own land in Indonesia Foreign Ownership Rights Relating to Land in Indonesia This thread on the Living in Indonesia Expat Forum has a years long discussion of the regulations for foreign ownership of property in Indonesia. Our appreciation to Asep Wijaya, Managing Director of Wijaya & Company, who provided the information on the Real Estate Transaction paperwork for this article. Last updated January 23, 2023 Foto Suasana bangunan reklamasi Teluk Jakarta yang sudah disegel karena tak memiliki izin mendirikan bangunan IMB di Pulau D, hasil reklamasi di Teluk Jakarta, Jakarta Utara, Jumat 8/6. CNBC Indonesia/Muhammad Sabki Jakarta, CNBC Indonesia - Kalangan pengembang kesulitan untuk membangun rumah baru untuk tahun 2022 mendatang. Pasalnya, hingga kini belum ada Persetujuan Bangunan Gedung PBG sebagai pengganti Izin Mendirikan Bangunan IMB. Alhasil, tahun 2022 terancam tanpa pembangunan rumah baru."Sementara ini kan vakum. Kalau saya ditanya prediksi economic outlook property tahun 2022 ya bingung. Gimana mau jualan?" Kata Ketua Real Estate Indonesia REI Totok Lusida kepada CNBC Indonesia, Rabu 22/12/21.Saat ini pembangunan rumah atau properti memang masih berjalan, namun itu merupakan hasil dari izin yang keluar sejak zaman IMB. Itu pun jumlah pembangunannya tergolong sedikit. Adapun setelah pemerintah mengubah ketentuan IMB ke PBG beberapa bulan lalu, maka belum ada izin lagi yang keluar. "Karena nunggu. Pembangunan yang jalan ini in progress dari sebelumnya. Yang baru nggak ada," kata terhambatnya PBG maka relaksasi Pajak Pertambahan Nilai Ditanggung Pemerintah PPNDTP untuk sektor properti menjadi tidak maksimal. Inden properti pun bisa terjadi akibat terlambatnya birokrasi"Besok saya ada zoom dengan Direktorat Jenderal Pajak Pusat ini gimana realisasi PPN DTP terhambat karena adanya penundaan PBG," ujar Buah Hasil UU Cipta KerjaPresiden Jokowi resmi menghapus ketentuan soal Izin Mendirikan Bangunan IMB. Sebagai gantinya ada ketentuan soal persetujuan bangunan gedung PBG yang fokus pada mengatur soal klasifikasi hingga standar teknis ini diatur dalam Peraturan Pemerintah PP No 16 tahun 2021 tentang PP UU No 28 tahun 2002 tantang bangunan Pasal 1 pada poin 17 disebutkan bahwa "Persetujuan Bangunan Gedung yang selanjutnya disingkat PBG adalah perizinan yang diberikan kepada pemilik Bangunan Gedung untuk membangun baru, mengubah, memperluas, mengurangi, dan/atau merawat Bangunan Gedung sesuai dengan standar teknis Bangunan Gedung"Dengan berlakunya PP ini yang merupakan penjelasan dari ketentuan Pasal 24 dan Pasal 185 huruf b Undang-undang Nomor 11 Tahun 2020 tentang Cipta Kerja, maka Peraturan Pemerintah Nomor 36 Tahun 2005 tentang Peraturan Pelaksanaan Undang-Undang Nomor 28 Tahun 2002 tentang Bangunan Gedung Lembaran Negara Republik Indonesia Tahun 2005 Nomor 83, Tambahan Lembaran Negara Republik Indonesia Nomor 45321, dicabut dan dinyatakan tidak PP 36 tahun 2005, memang sempat mengatur soal IMB, pada pasal 14.1 Setiap orang yang akan mendirikan bangunan gedung wajib memiliki izin mendirikan bangunan gedung.2 Izin mendirikan bangunan gedung sebagaimana dimaksud pada ayat 1 diberikan oleh pemerintah daerah, kecuali bangunan gedung fungsi khusus oleh Pemerintah, melalui proses permohonan izin mendirikan bangunan gedung.3 Pemerintah daerah wajib memberikan surat keterangan rencana kabupaten/kota untuk lokasi yang bersangkutan kepada setiap orang yang akan mengajukan permohonan izin mendirikan bangunan terbaru ini mengatur soal fungsi dan klasifikasi Bangunan Gedung; Standar Teknis; proses Penyelenggaraan Bangunan Gedung; sanksi administratif; peran Masyarakat; dan pembinaan. [GambasVideo CNBC] Artikel Selanjutnya Bos Properti Ngeluh, IMB Dihapus Malah Runyam Bin Pusing! hoi/hoi

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