Indonesian Property Ownership Options for Foreigners

[daminou]

To me renting is financially equivalent to buying .
So for example , if you buy a Rp10 Billion house , I could prefer to invest this Rp10 Billion and use the investment profit to rent a house .
Lets say , investing in Indonesian Government bond at 6%/year , 10% income tax and 2.5% inflation , I could get ~Rp290 million/year net interest for renting .
Probably the property price will rise in the future , but renting gives me more freedom to move if I don't like the house , the neighborhood , or the city .

I understand that foreigners can only inherit Indonesian land if there is no Will .

(non-official translation)
Article 21 of Land Law (UU no.5 - 1960)
(3) Foreigners who after the enactment of this Law do obtain property by inheritance without a will or a mixture of property through marriage,...

This deviate to another subject which is investing.
Don't get me wrong, I'm on stock market, I understand what you mean (even tho 6% a year on bond ? Im doing this but with american tech not gov bonds, lately bonds were not even covering inflation..), but we shouldn't consider main residency as an investment, putting a roof upon your head is a vital need ... if it's rental investment that's different story and then yes it has to be compared with other type of investments...

Plus I don't see it as a lack of freedom as the rental market here in Bali is very activ. If we need to move or want to.. we rent it out.. it will be a blank operation that pay for itself. (With taking the risk to have it not rented and paying ourself for it)

Regarding inheritance, the notary confirmed that if not me our daughter will get it, even if she has to sell it in a year (because double nationality) that will still be money for her and that's all that matter

 

[marcus]

Regarding inheritance, the notary confirmed that if not me our daughter will get it, even if she has to sell it in a year (because double nationality) that will still be money for her and that's all that matter

I would not trust in just one notary's opinion .
There are many rules for inheritance that needs to be taken in account , depending on religion and (sometimes) places .
One of the laws/regulations which may apply :

Article 29 of Indonesian Marriage Law no1 Year 1974 (non-official translation)
(2) The marriage agreement cannot be validated if it violates the boundaries of law, religion and morality.

 

[Ruserious]

Regarding inheritance, the notary confirmed that if not me our daughter will get it, even if she has to sell it in a year (because double nationality) that will still be money for her and that's all that matter

I take it the daughter is over 18? If younger then im sure that creates even more problems.

 

[marcus]

What if the person is an atheist, and doesn't have a religion?

I guess that , in most of the cases , the heirs agree themselves on how to share the inheritance , so Inheritance Laws may not be applied .
Otherwise the fight (in or out the Court) may be based on the religion of the heirs , or it will be an endless fight (?).

Are they still considered to be a human?

For sure everybody is considered human.

What if they're not married?

I guess the heirs will check the properties' documents to know who is/are the official owner(s).

 

[jstar]

There have been quite some cases, even described on this forum, where there was a will (testament) and the WNA encountered no issues at all to receive the inheritance. So that is a sign these laws are not considered very seriously.

 

[marcus]

There have been quite some cases, even described on this forum, where there was a will (testament) and the WNA encountered no issues at all to receive the inheritance. So that is a sign these laws are not considered very seriously.

I guess that , if no other potential heir show up to ask for the inheritance , the one who has the property document can possibly do things like that . But the law may still work if another heir contest it in Court .

I heard a case (but not with WNA) where a wife of the deceased got the house (owed by the deceased) for herself , without the other heirs knowing .