Posts Tagged Property Law
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.
Principle Regulations Governing Batam Island and Its Effect on Property Sector
Posted by admin in Batam Property Law on March 22, 2010
Batam has a strategic geographical location as the closest island to Singapore and Malaysia, which strategically located in the international shipping route. As the special zone for multinational trade area, Batam has a special treatment from the Government of Indonesia. This specialization can be seen from the several regulations on Batam status, which are as follows:
- Batam Island as the business area of Bonded Warehouse regulated in the Presidential Decree of Republic of Indonesia Number 41 of 1978 as amended lastly by the Presidential Decree of Republic of Indonesia Number 25 of 2005.Batam, Rempang and Galang (which also declared as an Industrial area), is developed to serve several main functions, namely: industrial, warehouse, trade, and transshipment.
- Free Trade and Free Port Zone regulated in the Government Regulation Number 46 of 2007 on the Free Trade Zone and Free Port Zone Batam.Batam has been determined as a Free Trade Zone (“FTZ”) and Free Port Zone (“FPZ”) which it gives the guarantee and the protection for all investors to conduct their business in Batam.
- Tax liberation regulated in the Government Regulation Number 2 of 2009.Batam was not only determined as place of warehousing, but also for place of processing with the liberation for Import Duties (Bea Masuk), Customs and Excise (Bea Cukai), Value Added Tax (PPN), and Luxury Goods Tax (PPnBM) which can be enjoyed by the entrepreneur who has obtained permission in Batam.
- Economic Cooperation regulated in Joint Statement by the President of the Republic of Indonesia and the Prime Minister of the Republic of Singapore.On June 25, 2006, the President of Republic of Indonesia and the Prime Minister of Republic of Singapore committed the joint statement of the Framework Agreement on Economic Cooperation between the Government of the Republic of Indonesia and the Government of the Republic of Singapore in the Islands of Batam, Bintan and Karimun.
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- FOREIGN OWNERSHIP BATAM KARIMUN
Legal Aspects of Building in Indonesia
Buildings are made to support people’s need of spaces. Building has many functions such as work space, business place, education place, recreation place and many more. In developing countries, especially for small countries, building is used to maximize the use of spaces.
In Indonesia, building is regulated in the Law No. 28 of 2002 on Building (“Law of Building”). According to Law of Building, the definition of building is a physical form of construction works which integrate with the land it stands on, partly or wholly stands over and/or under ground or water, having a function as a place for people to do their activities, either for residence or place to live, religious activity, business activity, sosial activity, culture or any specific activity.
Construction of building is held with the principle of utility, safety, balance, also the harmony between building with its environment. The regulation for building is intended for: Read the rest of this entry »
Condominium Development Policy
Posted by admin in Property Law, Strata Title on August 18, 2009
Housing and residence are every human being basic needs. With the increasing number of inhabitants, the land space provided becomes very limited. Because of that, houses are made in a multistory structure or commonly known as condominium (rumah susun). The development of condominium is an alternate problem solution of the needs of housing and residences especially in the cities or urban areas where the inhabitant is always expanding. That is because by developing condominium, the use of land can be suppressed, it provides a more spacious open-air city areas, and it can also be used to rejuvenate a city from the slum areas.
Indonesia has a law that regulate condominium, it is Law No. 16 of 1985 about Condominium (the “Law of Condominium”). The definition of condominium according to Article 1 number (1) on the Law of Condominium is a multistory structure building built in an environment that is divided into parts which functionally structurize horizontally and vertically and consist of units that can be owned individually and can be used separately, particularly for residence, which is completed with shared parts, shared properties, and shared land.
The main regulations of condominium are Law No. 16 of 1985 (enacted on December 31, 1985) and Government Regulation No. 4 of 1988 (enacted on April 26, 1988). There are also other regulations that specifically regulate condominium or strata title.
Direction of policy for condominium in Indonesia can be found within the Law of Condominium, there are three (3) essential substances, which are: Read the rest of this entry »
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