Indonesian Law | Hukum Indonesia - Blog

Tuesday, February 9, 2016

New Regulation: Individual Foreigners Can Purchase Landed House in Indonesia

The Indonesian Government issued Government Regulation No. 103 of 2015 on House Ownership of Foreigners Residing in Indonesia (the “GR103“) which came into force on December 28, 2015. 

The GR103 means that expats can now buy either a landed house or an apartment in Indonesia under certain requirements and conditions.

Key Points

Important points in GR103 are as follows:
  • Foreigners who hold a legal stay permit (diplomatic stay permit, official stay permit, residence stay permit, limited stay permit or permanent stay permit) who give benefit, conduct business, work or invest in Indonesia, may own landed house/apartment unit in Indonesia. 
  • The foreigner will own the house under the so-called ‘right of use’ category (in Indonesian: hak pakai). Please note that the right of use is not a freehold title. 
  • The foreigner can buy and own the house under right of use (hak pakai) for an initial period of 30 years. The right of use (hak pakai) can be extended for an additional 20 years and further renewed for 30 years (therefore ownership can reach a total of 80 years). 
  • Houses/Apartments owned by a foreigner in Indonesia may be passed by virtue of inheritance. However, if the heir is a foreigner, such heir must also have a legal stay permit in Indonesia. 
  • If the foreigner leaves Indonesia to reside in another country, then the foreigner must sell their houses/apartments to a qualifying person within a year after departing from Indonesia. 
  • Indonesian citizens marrying foreigners can own title over land as long as the title to the land is not part of the joint marital property. This must be evidenced by a prenuptial agreement in a form of notary deed. 
  • Further provisions concerning the procedures for granting, releasing, or transferring the ownership of a house or residence by a foreigner will be further stipulated in regulations to be issued by the National Land Authority.

By: tnrlawfirm

Download this article

Tuesday, October 20, 2015

Small Claim Court in Indonesia

Small Claim Court in Indonesia
The Supreme Court of Indonesia, by virtue of Supreme Court Regulation No. 2 of 2015 (“PERMA 2-2015”), has regulated the procedure for Small Claim Court proceeding in Indonesia.

Under Perma 2-2015, Small Claim Court means a simplified civil case legal proceeding in which the maximum claim is Rp. 200,000,000.00 (two hundred million Rupiah).

The main criteria or procedure for filing a small claim in Indonesia, under Perma 2-2015 are as follows:
  1. The maximum claim is Rp. 200,000,000.00 (two hundred million Rupiah) regarding breach of contract or tort lawsuit.
  2. The Small Claim Court proceeding is presided over by single judge.
  3. The small claim shall be examined and ruled under jurisdiction of a District Court.
  4. The following disputes cannot be resolved in Small Claim Court: Disputes which must be resolved by a special court (i.e. labor dispute which must be resolved through Industrial Relation Court); and Land disputes.
  5. There must be one plaintiff and one defendant only, unless having the same legal interests.
  6. The plaintiff and defendant must be domiciled in the same District Court jurisdiction.
  7. The address of the defendant must be known.
  8. It is mandatory for the plaintiff and defendant to appear before the court in every stage of the proceeding, with or without their respective lawyer.
  9. The Small Claim Court Ruling must be resolved within 25 working days from the first court date.
  10. The judge must prioritize amicable settlement.
  11. There will be no provisional claim, exception, counter-claim, intervention, replik, duplik nor conclusion. The plaintiff may only lodge the lawsuit memorandum (Gugatan) and the defendant may only lodge the rebuttal (Jawaban). 
  12. The plaintiff must also submit legalized document evidence when the plaintiff submits the lawsuit memorandum (Gugatan).
  13. The evidentiary court session is in accordance with the civil case legal procedure.
  14. Either plaintiff or defendant may file an objection against the court ruling within 7 working days from the date of the court ruling or the date when the court ruling has been properly submitted to the respective party. This objection should be filed to the Chairman of the District Court.
  15. The legal proceeding of the objection is presided over by panel of judges appointed by the Chairman of the District Court.
  16. The Chairman of the District Court must appoint the panel of judges for the objection proceeding within 1 working day from the date when the objection application has been deemed complete.
  17. The panel of judges must resolve the objection proceeding within 7 working days.
  18. The objection judgment is final and binding.