OWNERSHIP OF HOUSES OR DWELLINGS BY EXPATRIATES IN INDONESIA

REGULATION :

  1. Government Regulation Number 41 of 1996 regarding Ownership of Houses or Dwellings by Expatriates Domicile in Indonesia.
  2. Regulation of The Minister of Agrarian Affairs/Head of the National land Agency Number 7 of 1996 regarding Requirements for Ownership of houses or Dwellings by Expatriates.
  3. Regulation of the Minister of Agrarian Affairs / Head of the National Land Agency Number 8 of 1996 regarding Amendment of Regulation of the Minister of Agrarian Affairs / Head of the National Land Agency Number 7 of 1996 regarding Requirements of Ownership of Houses or Dwellings by Expatriates

 

  1. Houses or Dwelling Possibly Owned by Expatriates
    1. House built on :
      1. Land parcels of Right Use on State Land
      2. Land parcels occupied based on agreement with the land right holder :
        1. Agreement between expatriate with the land right holder formally made with Land Deed Official’s Act,
        2. Agreement noted in the corresponding Land Book and Certificate of The Land Right
        3. Duration settled based on agreement of both parties; however, not exceeds 25 years
        4. Duration is renewable, based on agreement of both parties stated in a new contract, for not longer than 25 years, as long as the expatriate still domicile in Indonesia
    1. Units of flat / apartment built on Right of Use on State Land

     


  2. Ownership mechanism of Houses and Dwellings by Expatriates:
    1. Purchase or build house on land parcel with Right of Use on State Land or Land with Ownership Right
    2. Purchase unit (s) of flat / apartment built on land with right of use on state land. The flat / apartment is not classified as Simple or very Simple House.
    3. Purchase or build house on land parcel with right of ownership or right of rent for building based on legal agreement with the corresponding right holder

     

  3. Land Rights Possibly Held by Expatriates :
    1. Right of Use on State Land
    2. Strata Title Landed on Right of Use on State Land *)
    3. Right of Use on Ownership Right Land *)
    4. Right of rent for Building *)

       

    *) Right awarded based on mechanisms regulated for the corresponding legal actions.

     

  4. Obligations of Expatriates owning houses or dwelling if not domicile in Indonesia :
    1. Within one (1) year obliged to release or transfer the rights on the house and land to the eligible person.
    2. If in one (1) year the house and land not released or transferred, then :
      1. Towards the house landed on Right of Use on State Land, the Ho use occupied by the State for auction. The result of the auction shall be given to the expatriate owner after being cut for auction and other legal fees
        1. Towards the house landed on land based on agreement, the house becomes the property of the land right holder.

     

  5. Rights of Expatriates :
    1. Right of Use on State Land, and Right of Ownership for Strata Title landed on Right of Use on State Land, can be use as mortgages
    2. Right of Use on State Land, Right of Ownership for Strata Title landed on State Land, and Right of Use on Ownership Right, can be transferred to other parties. Transferring Right of Building Use on Ownership Right has to be agreed in written form by the corresponding Ownership Right holder.


       

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