Posts Tagged Foreign Ownership
Requirements of Residences Ownership By Foreigners According to The Agrarian State Minister Regulation/Head of National Land Agency Number 7 of 1996
Posted by admin in Foreign Ownership, Summary of Regulations on June 21, 2010
This Agrarian State Minister Regulation explains about the requirements of residences ownership by foreigners, within the frameworks of the implementation of the Government Regulation Number 41 Of 1996 On Residences Ownership by the Foreigners Who Are Domiciled in Indonesia (the “GR No. 41 of 1996”). The Foreigners on GR No. 41 of 1996 are the foreigners who own and maintain the economic interests in Indonesia by implementing an investment to have a residential in Indonesia.
Residential ownership and how to obtain the right of land by the foreigners, are as follows:
- Purchase and build the residence on the Right to Use over a state land or the Right to Use over the Right to Own.
- Purchase the condominium which is built on the Right to Use over a state land.
- Purchase and build the residence on the Right to Own or the Right to Rent of the building which is based on written agreement with the owner of land.
The residence or condominium that can be purchased or built by the foreigners is residences or condominium that is not categorized as simple residences or very simple residences classification.
The acquisition of the right of land and/or residences and the Right to Own of Strata Title unit by the foreigners are carried out in accordance with the procedures according to statutory provisions applicable to the relevant legal actions. While the residences are not used by the foreigners, the residences can be rented by the company in Indonesia based on the agreement between the foreigners and the company.
Foreigners are obliged to release or transfer to the parties that are eligible in accordance with Article 6 paragraph 1 GR No.41 of 1996 when the foreigners or their family members do not use the residence for 12 (twelve) consecutive months.
Property Ownership for Foreigner and Foreign Entity Based on Draft of New Government Regulation
Posted by admin in Foreign Ownership, Summary of Regulations on April 28, 2010
The Government of Indonesia has been trying to find a way to provide more flexibility for a foreigner and foreign entity to own a property in Indonesia. One of the intentions is also to improve the property market in Indonesia. At this moment, the Government has been preparing a draft of new regulation on property ownership for foreigner and foreign entity. The type of regulation is the Government Regulation that will amend or terminate the previous Government Regulation Number 41 of 1996 on the Ownership of Residential House by Foreigner that is domiciled in Indonesia.
Definition of Foreigner and Foreign Entity
In the draft of regulation, the foreigner is defined as every individual that is not Indonesian nationality that is presence or domiciled in Indonesia. Foreign entity is defined as a private or public foreign legal entity. Private foreign legal entity means a legal entity that is established not based on Indonesian law or association or any other entities, having more than 50% of its members as foreigners. Public foreign legal entity means representative of foreign State or representative of international bodies in Indonesia.
Definition of Property
Property is a landed house and/or strata title unit. Landed house is a residential house or horizontal house that is directly established over the land. A landed house and/or strata title unit may have function as a residence, office, and/or trade, and/or social, cultural, and religion. This means that a foreigner and foreign legal entity may purchase property not only for residential purpose but also for commercial and other various functions.
Summary of Government Regulation No. 41 of 1996 on Residences Ownership by Foreigners Who Are Domiciled in Indonesia
Posted by admin in Foreign Ownership on March 8, 2010
The purpose of the Government Regulation No. 41 of 1996 (the “GR No. 41”) is to give a legal certainty for foreigners who own property in Indonesia. Foreigners who are domiciled in Indonesia are foreigners who give benefits for national development.
The requirements of property ownership by foreigners who are domiciled in Indonesia are as follows:
1. Property which is built on a land:
Having a Right to Use (Hak Pakai) over a state land;
Having a Right to Use which based on an agreement between the foreigner and the holder of rights over land (for example: Rights to Own or Rights to Build)
2. Strata title units which are built on a land with Right to Use over a state land. Read the rest of this entry »
Overview of Real Estate Law in Indonesia for Foreigner or Foreign Entity
Posted by admin in Foreign Ownership, Strata Title on September 11, 2009
The real estate law in Indonesia is mainly governed in the Law No. 5 of 1960 on Principle Provisions of Agrarian (the “Agrarian Law”).
Right of Land
Under Agrarian Law, there are certain types of land, among others that are related in this regard are as follows:
- Right to Own (Hak Milik);
- Right to Build (Hak Guna Bangunan); Read the rest of this entry »
Strata Title Ownership for Foreigner and Foreign Entity in Indonesia
Posted by admin in Foreign Ownership, Strata Title on September 9, 2009
Indonesia as a developing country is one of the investment destination for developed countries to expand their global business activities. That is why more foreigners domiciled in Indonesia to do their business. However, there are boundaries or conditions for foreigner to own a residence especially a strata title, which is going to be discuss further here.
Condominium can only be built upon land with titles of rights to own (hak milik), rights to build (hak guna bangunan), and right to use of government land (hak pakai atas tanah negara) or right to manage (hak pengelolaan) according to Article 7 paragraph (1) Law No. 16 of 1985 about Condominium (the “Law of Condominium”) and Article 38 paragraph (1) Goverment Regulation No. 14 of 1988 about Condominium (“GR No. 14 of 1988”). Read the rest of this entry »
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