Indonesia’s fairly stringent foreign investment laws have been in place since independence in 1945, an obvious reaction to centuries of Dutch colonial control, and framed in law by the Basic Agrarian Law of 1960. It’s a complex set of laws designed to keep Indonesia for the Indonesians, and as such has been subject to corruption since day one, but current or intending foreign “landholders” need to know only this: there are three types of domestic land title in Indonesia – Hak Milik, Hak Pakai and Hak Sewa. Hak Milik is basically freehold, and despite what estate agents and dodgy middlemen might tell you, foreigners cannot own land under this title, a subject we’ll get back to.
Hak Pakai is a secure leasehold of 25 years, usually renewable for another 25 years, but it is a contract between the buyer and the government, requiring the seller to forfeit all rights to the land, something most locals are not keen to do, meaning that the most common form of legal leasehold for bules is Hak Sewa, negotiated directly between the owner and the lessor. This is normally for 25 years too, but frequently such deals are complicated by technicalities such as who in the village really owns the land.
For this reason, the most popular Bali land deal construct for decades now has been through securing power of attorney over the person you believe to be the land-owner. Dodgy to say the least, and in recent years ageing baby boomer hippies and surfers have been thrown onto the streets as their nominees die and the next generation claims the property or demands double the money.
So if you’re intending to make your home in Indonesia, there’s plenty to be cautious about, but there always has been. While so far there has been no indication of a fundamental change to the land laws, what has recently stirred the bules into a lather of righteous indignation was an interview with Ferry Mursyidan Baldan, Indonesia’s Minister for Agrarian Affairs and head of the National Land Agency, who told Kompas.com in mid-March that his office was about to begin an inventory of land “owned” by foreigners. “It is absolutely not allowed for a foreigner to own a single inch of land in Indonesia,” he was quoted as saying.
Ferry drew attention to foreigners using “legally questionable powers of attorney” and “fictive mortgage agreements” to control land, but when asked what sanctions might be imposed on foreign nationals found to illegally hold land, he replied, “There is no need for sanctions, we will just divert possession of the land.”
With alarm bells going off all over Expatria, Ferry quickly added: “We are doing an inventory, not conducting raids. There is no need for anyone to be frightened.”
Well, hell no! Isn’t that what they said to the boys in Kerebokan?
Trying to hose down the hysteria, Balidiscovery.com went to their go-to notary Rainy Hendriany, who is known as one of the more level-headed people in the emotional minefield of property title. Hendriany confirmed what many expats have heard in recent months – that the Jokowi government is seeking to clean up the mess before reviewing and perhaps relaxing legal Hak Sewa title and extending it to as much as 70 years. She also suggested that the government’s preferred foreign title was Hak Pakai, but long term expats believe that this can never work.
Hendriany also ruled out legal foreign freehold: “In my opinion, the political will does not exist to amend higher laws solely for the purpose of allowing foreigners to own property in Indonesia.” She concluded by telling Balidiscovery.com that in the meantime, inventory or no, it would be business as usual, at least in Bali: “Bali is a small Island and the recent abuse of zoning regulations, height restrictions and setback regulations has been in the best interests of nobody in the longer term, especially the Balinese themselves. That villa built today in the middle of nowhere with beautiful views over the sawah (rice fields), results in unaffordable higher land taxes for the adjacent subsistence farmers, which in turn results in the land being sold to new investors and the sawah views are soon gone.
“If this sounds all too familiar to some of your readers, perhaps it is because they live in parts of South Bali where it is already too late.” //PHIL JARRATT
กฎหมายการลงทุนต่างประเทศค่อนข้างเข้มงวดของอินโดนีเซียมีการที่ตั้งแต่ความเป็นอิสระในปีค.ศ. 1945 ปฏิกิริยาที่ชัดเจนเพื่อศตวรรษควบคุมอาณานิคมดัตช์ และกรอบกฎหมายโดยกฎหมายเทคโนโลยีพื้นฐานของ 1960 มันเป็นชุดที่ซับซ้อนของกฎหมายที่ออกแบบมาเพื่อให้ชาวที่อินโดนีเซีย และดังได้รับอาจ มีความเสียหายตั้งแต่วัน แต่ปัจจุบัน หรือจะต่างประเทศ "landholders" ต้องรู้เพียงเท่านี้: มีสามชนิดของชื่อเรื่องที่ดินในประเทศอินโดนีเซีย – หัก Milik, Pakai หัก และหัก Sewa Milik หักพื้น freehold และแม้ว่าตัวแทนอสังหาริมทรัพย์และพ่อค้าคนกลางทำเลอาจบอกคุณ ชาวต่างชาติไม่สามารถเป็นเจ้าของที่ดินภายใต้ชื่อนี้ เรื่องเราจะกลับไปPakai หักเป็นอสังหาริมทรัพย์ทาง 25 ปี ปกติทดแทนอีก 25 ปี แต่มันเป็นสัญญาระหว่างรัฐบาล ต้องการลูกจ้างหมดสิทธิ์ที่ดิน บางสิ่งบางอย่างที่ชาวบ้านส่วนใหญ่ไม่มีความกระตือรือร้นที่จะทำ ผู้ขายและผู้ซื้อหมายความ ว่า แบบทั่วไปของกฎหมายอสังหาริมทรัพย์สำหรับ bules หัก Sewa เจรจาโดยตรงระหว่างเจ้าของและเช่า นี้เป็นปกติสำหรับปี 25 เกินไป แต่บ่อยข้อเสนอดังกล่าวจะมีความซับซ้อนจากข้อมูลทางเทคนิคเช่นการที่ในหมู่บ้านจริง ๆ เป็นเจ้าของแผ่นดินFor this reason, the most popular Bali land deal construct for decades now has been through securing power of attorney over the person you believe to be the land-owner. Dodgy to say the least, and in recent years ageing baby boomer hippies and surfers have been thrown onto the streets as their nominees die and the next generation claims the property or demands double the money.So if you’re intending to make your home in Indonesia, there’s plenty to be cautious about, but there always has been. While so far there has been no indication of a fundamental change to the land laws, what has recently stirred the bules into a lather of righteous indignation was an interview with Ferry Mursyidan Baldan, Indonesia’s Minister for Agrarian Affairs and head of the National Land Agency, who told Kompas.com in mid-March that his office was about to begin an inventory of land “owned” by foreigners. “It is absolutely not allowed for a foreigner to own a single inch of land in Indonesia,” he was quoted as saying.Ferry drew attention to foreigners using “legally questionable powers of attorney” and “fictive mortgage agreements” to control land, but when asked what sanctions might be imposed on foreign nationals found to illegally hold land, he replied, “There is no need for sanctions, we will just divert possession of the land.”With alarm bells going off all over Expatria, Ferry quickly added: “We are doing an inventory, not conducting raids. There is no need for anyone to be frightened.”Well, hell no! Isn’t that what they said to the boys in Kerebokan?Trying to hose down the hysteria, Balidiscovery.com went to their go-to notary Rainy Hendriany, who is known as one of the more level-headed people in the emotional minefield of property title. Hendriany confirmed what many expats have heard in recent months – that the Jokowi government is seeking to clean up the mess before reviewing and perhaps relaxing legal Hak Sewa title and extending it to as much as 70 years. She also suggested that the government’s preferred foreign title was Hak Pakai, but long term expats believe that this can never work.Hendriany also ruled out legal foreign freehold: “In my opinion, the political will does not exist to amend higher laws solely for the purpose of allowing foreigners to own property in Indonesia.” She concluded by telling Balidiscovery.com that in the meantime, inventory or no, it would be business as usual, at least in Bali: “Bali is a small Island and the recent abuse of zoning regulations, height restrictions and setback regulations has been in the best interests of nobody in the longer term, especially the Balinese themselves. That villa built today in the middle of nowhere with beautiful views over the sawah (rice fields), results in unaffordable higher land taxes for the adjacent subsistence farmers, which in turn results in the land being sold to new investors and the sawah views are soon gone."ถ้านี้เสียงทั้งหมดเกินคุ้นเคยของผู้อ่าน อาจจะเป็นเนื่องจากพวกเขาอาศัยอยู่ในส่วนของบาหลีใต้ซึ่งมันมีอยู่แล้วสายเกินไป" //PHIL JARRATT
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