How to Acquire Property in Bali
 Under Indonesian law, foreigners are not permitted to hold a property title in Indonesia.
However, foreign individuals can legally acquire property in Indonesia and enjoy full beneficial rights. Puri Amartha Phala always recommends to clients that they should secure the best legal advice when securing property in Bali. This is a summary of the various alternatives.
1) Enter in to a legal arrangement with an Indonesian nominee, either an individual or PT Company, where buy he/she/corporation holds title to the property. Simultaneously, complete a power of attorney, handing over full rights from the Indonesian entity to the foreign investor.
2) Make a leasehold investment in the property, up to 25 years. Partner ships with Indonesian citizens are not required in leasehold transactions. This method does offer complete protection to the foreigner during the term of the lease, however, once the lease term has expired the agreement can be extended or the property reverts to the Owner.
3) Form a foreign investment company (PMA). Here the foreigner can own the company 100% and the title of the property will be in the company name. However, title in this case could only last for 20 or 30 years as PMA companies have to re-apply to the Indonesian government to extend their license.
NOMINEE POWER OF ATTORNEY
This is done by providing the investor with an Indonesian nominee, who has title to the property but who simultaneously enters in to a legal power of attorney with the foreigner. The power of attorney gives the investor beneficial rights on the property and waives allrights of the nominee. The investor is then free to build on the land, sell or lease the property and transfer the title to next of kin, the nominee will receive a nominal fee for his responsibilities as the title holder.
FOREIGN INVESTMENT COMPANY (PMA)
The most significant change in indonesian investment law came in 1997 when the government intraduced the 'PMA' (Penanaman Modal Asing or Foreign Investment Company Programme). This allows foreign investors to setup a company in Indonesia, without having to have Indonesian partners, the PMA can be 100% owned by the foreign investor. PMA companies are allowed to own the title of the property for a period of 25 years, when the title has to be renewed by the Government.
Notaree:
Mr Eddy Nyoman Winarta SH
Komp. Pertokoan Segi tiga Emas Kav 31-32
Jl. Bypass Ngurah Rai 5 - Kuta - Bali - Indonesia
Ph: 0361 759776-766911 Fax:0361 766909 |
