Posts Tagged Government Regulation
Transfer of Rights of Land as a Result of Auction
Posted by admin in Right of Land on December 17, 2010
Background
Based on Government Regulation Number 24 of 1997 on Registration of Land, the transfer of right of land can be conducted by some means which are (i) sale and purchase (jual-beli), (ii) inheritance (warisan), (iii) testament (wasiat), (iv) grant (hibah), and (v) auction (lelang). The procedure for the registration of transfer of right of land as the result of auction is different with the other means. Auction means every public sale of goods by verbal and/or written to the highest bidder
Transfer of Right of Land through Auction
By its characteristic, auction can be divided into two types, i.e. (i) execution auction, and (ii) non-execution auction. Execution auction means an auction that is related to court decision, mortgage rights (hak tanggungan), tax seizure (sita pajak), seizure held by District Attorney (Kejaksaan) or Investigator (Penyidik), and seizure held by Affairs Committee of State Receivable (Panitia Urusan Piutang Negara). Auction of non-execution means an auction of the assets owned by State Central Government Agency (Instansi Pemerintahan Pusat) or Regional Government Agency (Instansi Pemerintahan Daerah), State Owned Enterprise (Badan Usaha Milik Negara) or Regional Owned Enterprise (Badan Usaha Milik Daerah), and voluntary auction that is related to the right of land, or right to own of condominium unit that owned by individual or legal entity.
In practice, on the execution auction there may be a problem in relation to the refusal from the executee to submit the original certificate of right of land which will be auctioned. However, that refusal will not stop the auction. In the event that certificate has not been delivered to the auction buyer, then the evidence for the registration of land is the statement letter (surat keterangan) from the Head of Auction Office (Kepala Kantor Lelang), elaborating the reason why the certificate cannot be given to the auction buyer. If the land has not been registered yet, the evidence for the registration of land is the statement letter from Village Head/Sub-District, stating on the control of land and statement letter about the land.
Auction Procedure and Registration of Land through Auction
The transfer of rights of land as the result of auction can only be registered to the National Land Agency if it is evidenced by the Minutes of Auction (Risalah Lelang). Within 7 (seven) days before the auction, the Head of Auction Office (Kepala Kantor Lelang) has the obligation to request the information on the physical data, and juridical data (data yuridis) as mentioned in the Map of Registration (Peta Pendaftaran), and list of land (daftar tanah). Within 5 (five) days after receiving the application, the National Land Agency will provide the land information to avoid the unclear public auction, and to make the Auction Official (Pejabat Lelang) has the basis to conduct the land auction.
The registration application of transfer of right of land acquired through the auction can be submitted by the auction buyer to the Head of Land Office by attaching the following documents:
- Minutes of Auction (Risalah Lelang).
- Certificate of right of land or condominium, if the right of land that will be auctioned has been registered.
- Statement Letter from the Head of Auction Office (Kepala Kantor Lelang) elaborating the reason why the certificate cannot be given to the auction buyer.
- If the land has not been registered yet, the auction buyer shall attach (i) deed of title, (surat bukti hak) such as written evidences related to the right of land, witness statement, and/or statement letter in relation to the land ownership which will be assessed by Committee of Adjudication (Panitia Adjudikasi)/Head of Land Office (Kepala Kantor Tanah), or Statement Letter from the Head of Village/Sub-District (Kepala Desa/Kecamatan) on right of land, and (ii) statement letter stating the land has not been certificated from the Land Office.
- Identity of auction buyer.
- The receipt of payment.
- Receipt of Acquisition Duty of Right of Land and Building (Bea Perolehan Hak atas Tanah dan Bangunan).
- Receipt of Income Tax (Pajak Penghasilan).
By registering the right of land through the Land Office, the auction buyer will be registered as the owner of land which has been auctioned previously.
Ivor Pasaribu, SH
Incoming search terms:
- letter of land transfer
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Legal Aspect of Construction Services According to Law No. 18 of 1999 – Indonesia
Posted by admin in Construction on November 30, 2010
Construction services hold a very important and strategic role in achieving various aims in order to support the objectives of national development to realize a fair and prosperous society both materially and spiritually based on Pancasila and the 1945 Constitution. Therefore, it is necessary to arrange a specific regulation of construction services, which is now set under the Law Number 18 of 1999 on Construction Services (“Construction Services Law”).
Overview of Construction Services
Construction services is consultancy services of construction work planning, services of construction work performance, and services of construction work supervision. The parties in a construction work consist of service user and service provider. Construction services are carried out by the construction services provider, in the form of individuals or business entities. Construction services that carried out by individuals as the service provider can only perform the low risk construction work, with simple technology, and low cost. Meanwhile, the high risk construction work and/or high technology and/or high cost can only be performed by limited liability companies or the equivalent foreign corporations.
License for Construction Services Provider
Construction services provider in the form of business entities shall (i) comply with the provisions of business license in the field of construction services; (ii) possess certificate, classification, and qualification of a construction service company. A classification and qualification standard of proficiency is an acknowledgment of the proficiency level of every business entities both national and foreign in the field of construction services business. Such acknowledgment is obtained through a test(s) carried out by an institution assigned to perform it. The process of obtaining such acknowledgment is through a registration activity comprising classification, qualification, and certification. Therefore, only certified business entities that are permitted to work in the field of construction services business.
The business license of construction services has been further stipulated in Article 14 of Government Regulation Number 28 of 2000 on Business and Society of Construction Services Role (“PP 28/2000”) jo. Government Regulation Number 4 of 2010 on Amendment of PP 28/2000 and Decree of Minister of Settlement and Regional Infrastructure Number 369/KPTS/M/2001 on Guidelines of Licensing for National Construction Service Business.
Incoming search terms:
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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.
Incoming search terms:
- chinese foreigner in indonesia
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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 »
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