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Thursday, 24 July 2008

Property ownership for foreigners in Indonesia

With the spirit of foreign investment and business in Indonesia, many foreign investors need buildings or land for their company. A foreign investor who is willing to run their business in Indonesia can buy their own building/office or land under the following rights: a right to build (hak guna bangunan), a right to cultivate, a right to use, and a right to lease a building.
Further, according to the Indonesian law, a foreigner cannot own land in Indonesia but purchasing apartments or office space is possible through a strata title deed. The Government Regulation No. 41/1996 states that an expatriate who resides in Indonesia or visits the country regularly for business purposes can purchase a house, apartment or condominium, as long as it is not a government subsidized development. The title is only for the right to use.
It is suggested for foreigners in Indonesia that before purchasing any property in Indonesia, they should consult with a reputable Indonesian legal consultant\to understand the legal status of the ownership and to prevent any legal issue in the future.

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