How To Buy A Property in BALI

Property rights in Indonesia for foreigners
Under current Indonesian law, foreigners as individuals may not directly own land in their own names.

However there are a number of legal titles that have the effect of allowing a foreigner to take interest in real estate.

1.Hak Milik – Freehold title. The ‘nominee system’ is a popular method that involves entering into a legal contract with an Indonesian citizen (the ‘nominee’). The nominee holds the freehold title to the property in his or her name, but signs over practical control to the foreigner through irrevocable power of attorney.

2.Hak Guna Bangunan – The Right to Build title. Forming an investment company, (Penanaman Modal Asing – PMA) is a practical method of effecting land ownership for those who intend to operate a business in Bali. A PMA company may own land in its own right, subject to approval of the company’s activity, and a foreigner may fully control a PMA company. The PMA company has title under Hak Guna Bangunan which is the right to build.

Usually such a right has an initial duration of 50 years. This can be extended for a further 30 years, giving an effective maximum period of 80 years. Prospective property owners should be aware that a Hak Guna Bangunan title involves tax implications, and that the Department of Trade will review the PMA company after 25 years to ascertain if it has been operating according to the criteria established when it was set up.

3.Hak Pakai – The Right to Use title. As it relates to foreigners, this title

is available to those who hold a residence permit (KITAS), and to PMA companies. For KITAS holders, the Hak Pakai title is granted for an initial period of 25 years. Renewals are usually available. For a PMA company, the title is granted for an initial 45 years, and may be extended for a further 25 years to a maximum of 70 years. Renewal is subject to a number of conditions, including that the land use still fits with government plans; that it has not been abandoned; and the PMA company is still in business and has not infringed tax law.

4. Hak Sewa – The Right to Lease title. This title is simple and straightforward and is available to virtually any individual or company. The property, and any improvements to it, reverts to the original owner at the expiry of the term of the lease. Lease periods vary, and extensions are often agreed in advance. In Indonesia, the entire cost of the lease for its entire duration is paid on signing the contract

Opinion on Security Paper of Land Purchasing

1. General Preview

Governing law, land ownership and rights are governed by Law No. 5 of 1960 concerning Basic Agrarian Law. Only Indonesian may hold full right to land, air and water (Art.9(1) of Law No. 5 of 1960). Law No. 5 of 1960 specifically in corporate principle Adat Law which are generally unwritten, vary across Indonesia and produce legal uncertainty. Foreigner, including former Indonesia citizen, who inherit or otherwise obtain transfers trough marriage of right ownership must release right within 1 year or revert to State. Also right of ownership can be object of mortgage.

The unique in Bali, we have very interesting atmosphere and circumstances regards on tourism industry and purposes that one of the trigger for foreigner to have property in Bali. It must be mutual understanding and do not harm any of the parties to conduct this situation (in legal term is agreement).

In legal and law perspective, foreigner shall have the ownership in authorized Indonesian to have the ownership and once in the same time releasing the ownership itself in mortgage with no exception, and must be done by legal professional advocate and notary (and land conveyer).

2. Fundamental of Agreement

Having valid and right agreement and can bound the parties, we have to fulfilled the conditions and requirements based on Private Law (Burgerlijk Wetboek), book number two, that stipulated Art. 1320, 1338 and 1339; in general 1. Agreement reached, 2. Authority to conduct, 3. The specific purposes, and 4. Condition legally accepted. Other condition must be considered and fulfilled; 1. Good faith, 2. In accordance with custom, 3. in accordance with propriety, and 4. In accordance with public interest.

Develop Contract Business Hire – Purchase in Economic Perspective to create SMART Customer

Contract business hire – purchase is really mushrooming recently, it is good sign and indication that our society are becoming beware of law enforcement. In other side as customer off course it is not enough since not calculating benefit cost ratio and economic added value. Concerning to the right and compulsory or obligation between parties should be also creating added value for the parties. Now days, mostly the parties only stipulated and concern the magnitude of nominal rupiah without calculating benefit cost ratio and defining equality position before the law based on contract business it self.

Create economic added value is the important part should be though in the beginning, like business contract hire - purchase electronic goods that recently very mushrooming. With pattern of emotion purchasing only few of customer desire to calculate benefit cost ratio in detail, regarding the application of Law Number 008 Year 1999 about customer protection. Digging up the economic added value in economic perspective and law about business contract hire purchase hence, the key things are pattern of income customers, saving, free risk of bank central, interest rate in market and opportunity cost. The items are stipulated is the application of BW, chapter 1365 about the element of loss covered.

Bali, no different, walk a bang of Tengku Umar street it is digital world that never sleep and fully crowded of customers. Get in to one phone shop; there are many kinds of hand phone from the conventional to sophisticated one from the cheap to the expensive one, off course this circumstances really spoiled the customer and triggering the purchasing on emotion. Customers not really care about need and utility that finally can not match the equilibrium between indifferent curve and budget line. It is also indicate that pattern of purchasing not different and must be shifted become smart customer.

Based on fact finding now days, it is the starting point of customer to eager to calculate benefit cost ratio, added value and defining equality between parties in signing the business contract of hire purchase especially for electronic goods. With having the pattern above, purchasing on emotion going to be shifted become as smart customer.

Bankruptcy of PT Courts Indonesia, Tbk from Business Law perspective

Contract business hire – purchase is really mushrooming recently, it is good sign and indication that our society are becoming beware of law enforcement. In other side as customer off course it is not enough since not calculating benefit cost ratio and economic added value. Concerning to the right and compulsory or obligation between parties should be also creating added value for the parties. Now days, mostly the parties only stipulated and concern the magnitude of nominal rupiah without calculating benefit cost ratio and defining equality position before the law based on contract business it self.

Create economic added value is the important part should be though in the beginning, like business contract hire - purchase electronic goods that recently very mushrooming. With pattern of emotion purchasing only few of customer desire to calculate benefit cost ratio in detail, regarding the application of Law Number 008 Year 1999 about customer protection. Digging up the economic added value in economic perspective and law about business contract hire purchase hence, the key things are pattern of income customers, saving, free risk of bank central, interest rate in market and opportunity cost. The items are stipulated is the application of BW, chapter 1365 about the element of loss covered.

Bali, no different, walk a bang of Tengku Umar street it is digital world that never sleep and fully crowded of customers. Get in to one phone shop; there are many kinds of hand phone from the conventional to sophisticated one from the cheap to the expensive one, off course this circumstances really spoiled the customer and triggering the purchasing on emotion. Customers not really care about need and utility that finally can not match the equilibrium between indifferent curve and budget line. It is also indicate that pattern of purchasing not different and must be shifted become smart customer.

Based on fact finding now days, it is the starting point of customer to eager to calculate benefit cost ratio, added value and defining equality between parties in signing the business contract of hire purchase especially for electronic goods. With having the pattern above, purchasing on emotion going to be shifted become as smart customer.