Invest in Indonesia: Hak Pakai (Right of Use) for foreign investors
Since March 2004, the following laws are in effect in Indonesia:
The government offers foreign Investors land rights that are relevant to the nature of their business. Prospective buyers of land for any purpose should consult the local government authorities on land use, planning and zoning. Based on a Presidential Decree issued in June 1996, foreigners domiciled in Indonesia are allowed to own one residential property. To meet the regulations of ownership of a house or an apartment, a foreigner must be deemed to be “beneficial to national development” and must be either:
-An Indonesian resident (permanently domiciled in Indonesia) in possession of a permanent resident permit
-A non-resident (domiciled in Indonesia only at particular times) in possession of appropriate visit and immigration stamps on his/her passport.
Ownership is limited to 25 years, and can be extended for another 25 years, which the foreigner will obtain if he that the foreigner remains an Indonesian resident or meets the status requirements.
If the foreigner departs from Indonesia, the property must be sold or transferred within one year after departure.
If the foreigner or his family does not use the house for more than 12 consecutive years, then the foreigner forfeits the “being domiciled” status, for the purpose of owning residential property.