Law requirements for foreigners to own or buy property in Indonesia
LEGAL INFORMATION
Until this day, Indonesia still using a very old Law source related to property law especially about agrarian, natural resources, property, etc. According to Law number 5 of 1960 corncerning Basic Agrarian Principles, Indonesian citizen are the only subject allowed to “own” property in Indonesia and have (claim) the freehold certificate of it.
Also, according to Republic of Indonesia Government Regulation number 103 of 2015 corncerning Ownership of Residential or Residential Homes by Foreigners Domiciled in Indonesia, it is stated that “Foreigners who are Domiciled in Indonesia and not Indonesian citizens whose existence provide benefits, do business, work, or invest in Indonesia are permitted to own property in Indonesia.”
The word “own” in Republic of Indonesia Government Regulation number 103 of 2015 corncerning Ownership of Residential or Residential Homes by Foreigners Domiciled in Indonesia, it means that foreigners are allowed to own a property but only for use rights. In other words, Indonesian Law is possible to give a chance for foreigners to own a property for use rights within certain limited time.
But there are ways for foreigners to legally own a property in Indonesia…….
- Married with Indonesian citizen
Married with Indonesian citizen is the simplest way to own a property and posses a freehold certificate of it without changin nationality to be an Indonesian. The process will be easy because foreigners are able to use wife/husband’s name for the land freehold certificate.
- Transfer the nationality
Changing the nationality and become an Indonesian citizen is also an option, but we would not reccomend this way because there are so many requirements that should be fullfilled by the foreigners.
According to Indonesian Law (Basic Agrarian Priciples), the maximum time limit for foreigners to lease (own by use rights) the property is 35 years plus option to extend the term for 25 more years.
There are still plenty of things that foreigners should know before buy or lease property in Indonesia. Because of these complexity, every case (subject, object, time limit, etc) need a different methode in order to prevent the mistakes and the most important thing is to make the investment legal and safe.
If you need legal consultation and legal assitance related to this matters, just contact us through our email or this website’s “contact us” box.
We are experienced with all of these matters.
Regards,
Ubud Law Office Team
www.ubudlawoffice.com
Thanks for the information
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