Ownership laws in Indonesia
The Indonesian land acquisition law is very different to the laws which apply in Western countries.
There are five types of agrarian laws.
There are only two types of interest for foreigners:
1 - Hak Milik (ownership)
This title can not be doubted.
2 - Hak Pakai (valid)
A lease for 25 years which is renewable for further 20 years. This variant is suitable for people who want to have only a limited time a property in Bali.
3 - Hak Guna Bangunan (building)
Declaration of the law:
Only an Indonesian citizen can buy Free hold properties. The commend way for foreigners is to select an notary who will buy the property in his name and set up an contract in which he gives all the control of the property to the foraging client.The contract contains:
- A loan agreement which saies that the notary owns you a cash amount equal to the purchase price of the property.
- An irrevocable power of attorney that allows you the permission to sell, lease or otherwise use of the property without prior consultation with the name donor.
- in case of death their is, the right to permanent use by the family of the owner.
- A written piece which states that the notary has acted only as an name donor..
This method is most frequently used for years. It is the only way a property can be owned by an for anger.
II - The long-term lease (Lease Hold)
It is a lease of 25 years which is renewable once for 20 years.
A person of any nationality has the right to this contract. The contract gives you full authority over the property. If you rent a property, you can build on it. You are free to use the property for private or commercial use. (Rental to others)
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