Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Foreign ‘Ownership’ of Land in Indonesia
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Foreign ‘Ownership’ of Land in Indonesia

New Government Decree Issued on Foreign Land Ownership in Indonesia


Bali News: Bali, Indonesia, Foreign Land Ownership, Hak Milik, Hak Pakai. Hak Pengelohaan
Click Image to Enlarge

(4/25/2016)

The Minister of Land and Spatial Planning/Chairperson of the National Land Affairs Agency (BPN) has issued Regulation No. 13 of 2016 regarding the transfer of ownership of homes for foreign residents in Indonesia.

The new regulation permits foreign residents of Indonesia to directly purchase homes in Indonesia providing the subject homes meet the following minimum price levels:

  • DKI Jakarta Rp. 10 billion
  • Banten Rp. 5 billion
  • West Java Rp. 3 billion
  • Yogyakarta Rp. 3 billion
  • East Java Rp. Rp. 5 billion
  • Bali Rp. 3 billion
  • West Nusa Tenggara Rp. 2 billion
  • North Sumatra Rp. 2 billion
  • East Kalimantan RP. 2 billion
  • South Sulawesi Rp. 2 billion
  • All other regions Rp. 1 billion
The new regulation also stipulate:
  • Foreigners purchasing an apartment or a single-family residence must hold residency status.
  • The apartment or single-family residence that can be held by a foreigner with “Hak Pakai” (Right of Use) or “Hak Pengelolaan” (Right of Management) status must, at least initially, be purchased from the Government or from a developer.
  • Hak Pakai title is valid for a maximum period of 80 years.
  • If the foreigner dies or is no longer an Indonesian resident, the land must be sold to a “qualified buyer” within one-year.
  • A property can be inherited by a family member who is a foreigner if that person holds residency in Indonesia.
  • The much-coveted “freehold” (Hak Milik) remains closed to foreigners in Indonesia.
Luxury Taxes may apply on the transaction in which a foreign resident acquires an apartment or single-family residence.

While members of the real estate industry welcomed the clarifying legislation, many are adopting a “wait and see” stance in order to obtain a better understanding of actual legal practice as it applies to foreigners involved in Indonesian property transactions.

Other real estate professionals complain that the government has taken too long to open real estate transactions to foreign buyers, announcing deregulating terms only after the market is in a state of decline.

The new regulations may also prove problematic for foreigners seeking to own land in Indonesia. Particularly challenging issues remain with the fact that Indonesian property purchasers have traditionally shown little interest in purchasing land held under “Hak Paki” title, given the expensive and time-consuming proceduresrequired  to convert “Hak Pakai” into “Hak Milik.” This fact may prejudice the saleability and purchase price of a proprery held by a foreigner under "hak pakai" title.

Also raising concerns is a provision that mandates the State can auction a land held by a foreigner if he or she is unable to sell the property within one year after their residency status ends. Many suspect that this process would result in an unfair price far below the property’s actual market value.

For a comprehensive and accurate presentation addressing foreign ownership of property in Indonesia, please read the related article below.

Related Article

Interview: Rainy Hendriany – Foreign Ownership Update


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.

       

 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
More Coin for Three Fountains
Badung Regency Installing Dancing Fountains at Three Major Public Monuments
(11/19/2017)
For Sale: 350 Bali Houses at Rp. 3 Billion Each
350-Unit Elite Housing Complex to be built in Tohpati, North Sanur, Bali by Waskita Karya Realty
(11/19/2017)
Indonesian Tourism – One Complex at a Time
Bali’s ITDC Celebrates 44 Years of Developing Indonesian Tourism
(11/18/2017)
Time to Tango?
Solo Tango Orquesta to Appear at Padma Resort Legian, Bali on November 30, 2017
(11/19/2017)
Party on the Beach in Sanur
ARTOTEL to Open a Sanur Beach Club, Bali in December
(11/19/2017)
Bumble in Jungle
Four Villagers in Karangasem, Bali Suffer Attack by Jungle Bees
(11/19/2017)
What’s the Buzz
Provincial Health Officials Warns Public to be on Guard Against Mosquito Bites that Cause Dengue Fever
(11/18/2017)
Counter Moves at Bali Airport
Bali Airport Adding 40 New Check-in Counters for IMF-World Bank Conference in 2018
(11/19/2017)
Major MICE Show Coming to Indonesia
DestinASEAN Meeting, Incentive, Convention and Exhibition Show in Tangerang, Indonesia April 9-10, 2018
(11/18/2017)
OTAs Asked to Pay their Fair Share in Taxes
Indonesian Hoteliers Want to Pressure International Online Travel Agents to Pay Sales Taxes.
(11/18/2017)
One Less Corrupt Official in Bali’s North
Karangasem Official Collecting Illegal Levies from Tulamben Dive Operators Sent to Prison for One Year
(11/18/2017)
A Way Back for Bali’s Lake Batur
Regional and National Efforts Underway to Reverse the Severe Environmental Degradation of Bali’s Lake Batur
(11/18/2017)
All [News]!