posted by Charles H. Russo on Dec 17
Following last week’s excellent article in Bali Discovery regarding the legality of foreigners buying land in Bali, there follows another related article, this one an interview with a respected notary on the same subject.
This Land is My Land, This Land is Your Land
Interview: Balidiscovery.com Speaks with Rainy Hendriany SH, a Bali-based Notary, About Foreigners Purchasing Land in Bali.
Bali News: This Land is My Land, This Land is Your Land
(9/15/2007) A recent article in balidiscovery.com [Freehold Land Title for Foreigners in Bali: Caveat Emptor] generated many comments from readers seeking to clarify the confusion that surrounds foreign land ownership in Bali, particularly as relates to freehold land ownership. To shed more light on the subject, we recently caught up with a leading Sanur-based Notary, Rainy Hendriany, for the following interview.
Rainy Hendriany: The Interview
balidiscovery.com: With the recent surge in property developments in Bali, there has been much discussion regarding the ownership of freehold property by foreigners. Can you clarify?
Rainy Hendriany: Under no circumstances can foreigners own property under Hak Milik (Freehold) title in Indonesia. There is only one semi-exception. If a foreign investor is married to an Indonesian citizen, providing that a Pre-nuptial agreement was entered into prior to the marriage being registered, the Indonesian spouse may hold Hak Milik land title.
balidiscovery.com: If a foreigner wants to invest in a property in Bali, how can this be done in compliance with Indonesian law?
Rainy Hendriany: There are several possibilities. Firstly, the lease of land under Hak Sewa (Leasehold) is perfectly legal and requires only a simple contract between lessee and lessor. Such a contract cannot be longer than 25 years but through various renewal clauses, the lease can be put in place for periods of time which are adequate for the needs of most investors. In this vehicle, the land title remains with the Indonesian owner of the land.
Secondly, as a result of Government Regulation 41 of 1996 (PP41) and several other subsequent changes in other regulations, it is now possible for most foreigners to own Hak Pakai title - the right to use and build a residence on the land. In this case, essentially the land title is returned to the Government and the foreigner would be issued with a Hak Pakai land certificate in his/her name for 25 years which with one extension of 20 years would therefore be valid in total for 45 years.
Thirdly, all Companies in Indonesia, both local and Foreign Direct Investment (PMA), can hold Hak Guna Bangunan (HGB) land title
Leave a Reply