Laman

Tampilkan postingan dengan label business and investment. Tampilkan semua postingan
Tampilkan postingan dengan label business and investment. Tampilkan semua postingan

The Free Hold Rights or The Usage Rights? (Can Foreigner Own the Property in Indonesia part I)


       
                                                             
                                         

Many to confuse especially expats about the posibblity of  them to have an  equal right  as  Indonesian citizen about Land (agraria) Rights  in Indonesia.  Before we talk about this ,it is important to understand the  Indonesia laws hierarchy. Well here is the hierachy ;
  1. Undang-Undang Dasar Negara Republik Indonesia Tahun 1945; (The state constitution)
  2. Ketetapan Majelis Permusyawaratan Rakyat (The decision of  people consultative assembly)
  3. Undang-Undang. (Laws)
  4. Peraturan Pemerintah Pengganti Undang-Undang; (The substitution  regulation  of laws)
  5. Peraturan Pemerintah; (The Government regulation)
  6. Peraturan Presiden; ( The President regulation)
  7. Peraturan Daerah Provinsi;  (The Governor  regulation)
  8. Peraturan Daerah Kabupaten/Kota  (The Mayor/Regent regulation).
Today Indonesia still hold the Agrarian Laws No 5. Years 1960 as the  principal laws of agraria  and it hasn’t amended or replaced by other laws of agraria .It is stated  in Agrarian Laws No 5. Years 1960 ,article no 16. there are several types of  land right of  agraria as  below:
  1. Hak Milik or Right of Ownership /Free Hold Rights
  2. Hak Guna Usaha (HGU) or Right of tenure by long lease/Cultivation Right on Land
  3. Hak Guna Bangunan (HGB) or Right to Build
  4. Hak Pakai (Right to use).
More  further base on  Laws No 5. Years 1960  the subject of the above ownerships rights are ;
a. Hak Milik (Rights of Ownership)
1.       Indonesia Citizen ( WNI)
2.       Indonesia Legal Entity/Company what specified by Peraturan Pemerintah
       based on article 21 :
b. Hak Guna Usaha (Rigths Of Tenure By Long Lease)
1.       Indonesia Citizen (WNI)
2.       Indonesia Legal Entity/Company building according to Indonesia law and domiciles in
       Indonesia
                      based on article 30 section 1
c. Hak Guna Bangunan (Rights to build) :
1.       Indonesian citizen (WNI),
2.       Indonesia Legal Entity/Company incorporate/build according to Indonesia law and
       domiciles in Indonesia
                             Based on article 36 section 1
d. Hak Pakai (Rights to usage of land)
1.       Indonesia Citizen ( WNI)
2.       Foreigners who domiciles in Indonesia in certain times
3.       Foreign company that establish/incorporate under the Indonesian Law
4.       Foreign Company that having its representative in Indonesia
5.       Department, Governmental Agency Non Department and Local government
6.       Social and religious organizations
7.       Representative of Foreign state and representative of Internasional organization
                      Base on article 42  juncto article 39 PP No. 40/1996.
So  by this  Agrarian  Principle  Laws No. 5 Years  1960 ,the  foreigner and foreign entities   are eligble to posses the land in Indonesia   under the   terms  of Hak   Pakai  ( Right to Usage)
The  Hak Pakai or the Right to Usage  is   Rights  to use  land  which owned by the state or private entities by the agreement with the owner of the land .The agreement must be  formed in the deed of conveyance  . The deed of  conveyance entitles the holder to use the land   by the detail and specific purpose and terms
Now  how about  Peraturan Pemerintah (PP)or   the government  regulations  No 103 Year 2015 about Ownerships of Dwelling about the ownership of   residential  house  and occupancy for foreigner whom domiciled in Indonesia.?  Is there any principal amendement for foreign entities  regarding its right  to posses the land in Indonesia?
To  bring some convenience  and  legal certainty for  foreigner , the president of Indonesia has signed  the  government regulation or  Peraturan  Pemerintah (PP)  No. 22 Year 2015  about the ownership of   residential  house  and occupancy for foreigner whom domiciled in Indonesia. But some how the Peraturan  Pemerintah (PP)  No. 22 Year 2015  is lower than the Agrarian  Principle  Laws No. 5 Years  1960  as Undang undang  (UU) or  Laws is predominance  compare to Peraturan Pemerintah  (PP) or Government Regulation . Yet PP  No. 22 Year 2015  stated the details  of  Hak Pakai (Rights to Usage ) for   foreigner and    below are some  issues  which stated in PP  No. 22 Year 2015 
The article No. 2. 
 That  the foreigner  who is not the Indonesian citizen whom  his or her present in Indonesia  gives advantages ,performs business or works or invests in Indonesia  is eligible  to  own house for residence  or  occupancy  under  the  Hak  Pakai or  the Right  to  Usagese   (sec. 1) .  Foreigner mentioned in sec .1 ,is a holder of a residence permit in Indonesia in accordance with the provisions of laws and regulations (Sec. 2).  In a case of death of foreigner, the residential or dwelling house mentioned in sec.2 ,may be inherited. (Sec. 3.)
The article No. 3.
Any Indonesian citizen  who is married to foreigner  has  the equal  rights  for land ownerships  as  other  Indonesia citizen (Sec.1). The rights of land ownerships  mentioned  for  Indonesian  citizen in sec.1  is not applicable for  shared assets by  the  evidenced of  the deed of separation   (Sec .2).
The article No. 4.
House of dwelling or residency  which  referred by article 2  is ;
Single landed house  which  built   on the Hak Pakai  (Right to Usage) land  and the  Hak Pakai (Right to Usage ) which derivated   from Hak Milik  or Free Hold Rights  by the deed of land title registar (Sec.1).and Vertical house which built on the  land of  Hak Pakai  (right to usage) (Sec.2)
The article No.5
The foreigner is granted  a  Hak Pakai (Right to Usage)  for the  new purchased single landed  house   and  a Hak Milik ( Free Hold Rights)  for the new purchased vertical house  which build on the  Hak Pakai (Right to Usage ) land.
The ownerships of the  Hak Pakai (Right to Usage)  property  is granted for 30 years and can be extended two times for a total 50 years ( 20 years of first extend ,30 years of second extend).

 Free to copy, please  attach the source




Foreigner Investment part II (company establishment)





How to establish a company  for foreigner?
As a meant of foreigners` business in Indonesia, establishing a company  (or PT. in Bahasa) for  some reason is the best choice.  but of course its  become the PT. of foreign investment no matter how many your share is .100% or 1 % share of foreigner automatically . How ever the procedures is a bit different than local PT .There are three  procedures of  establishing the foreign PT. but the procedure I displayed here is  the most common to apply
1.

Request the name  of     PT.

2
Applying the principal license of  foreign company

3.
Deed of establishment and legalization from ministry of laws and  human rights

4.
To register  PT`s. domicile at the local government

4.
To register PT at the state tax office to obtain PT`s tax identification number and  the registration certificate   

6.
To register  PT at  The  trading  and industry  of  province or municipality 

The minimum limit of authorized capital of foreign company or foreign  PT must be 10.000.000.000 (IDR)- and the 25% of it must   be paid up capital.  Please also be careful of PT`s domicile , because not all location can be the domicile of PT . Its  depend on the policy of local government but mostly the housing is forbidden to be the domicile of PT.

Further information and service  please  please contact:
lightferrash@gmail.com
+62 8129 0386 526 ,+ 62 8190 6437 917 (phone)
+62 8778 3943 291 (whatsup)
Or visit us at : Meruya selatan St.no 3,Meruya selatan ,Kembangan, West Jakarta

Foreign Investment part I ( negative business fields lists)

    Some foreigners come to Indonesia come for visiting and social purpose some come for employment and business  purpose . For those whose purpose is  to perform business ,this article might give you a little information about  the list of business  fields that open with conditional terms and closed for foreigners.  Basically  this regulation prevent the foreigners to compete with local  micro business head to head and avoid  some high risk business field to be explored even for Indonesian
Here are some negative  field of foreign investment
PRESIDENT OF THE REPUBLIC OF INDONESIA
LIST OF APPENDIX TO REGULATION OF THE PRESIDENT OF THE REPUBLIC OF INDONESIA
NUMBER 44 YEAR 2016  CONCERNING  LISTS OF BUSINESS FIELDS THAT ARE CLOSED
TO INVESTMENT
No
Business Field
Index
business field
Sector
1.
Cultivation of Marijuana
01289
Agriculture
2
Catching of fish species listed in Appendix I to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES)
10719

Forestry
3
Lifting of valuable artifacts from shipwrecks
52229
Marine Affairs and Fisheries
4
Utilization (collection) of coral from nature for construction materials/lime/calcium, aquarium, and souvenirs/jewelry as well as living coral or dead coral (recently dead coral) from nature.
03117
Marine Affairs and Fisheries
5
Chloral alkali making industry under mercury proces
20111
Industry
6.
Industry of pesticide active substances: DichloroDiphenylTrichloroethane (DDT), Aldrin, Endrin, Dieldrin, Chlordane, Heptachlor, Mirex, and Toxaphene.
20111
Industry
7.
Industrial chemical industry and Ozone Depleting Substances (BPO): Polychlorinated Biphenyl (PCB), Hexachlorobenzene and Carbon Tetrachloride (CTC), Methyl Chloroform, Methyl Bromide, Trichloro Fluoro Methane (CFC-11), Dichloro Trifluoro Ethane (CFC-12), Trichloro Trifluoro Ethane (CFC-113), Dichloro Tetra Fluoro Ethane (CFC-114), Chloro Pentafluoro Ethane (CFC-115), Chloro Trifluoro Methane (CFC-13), Tetrachloro Difluoro Ethane (CFC-112), Pentachloro Fluoro Ethane (CFC-111), Chloro Heptafluoro Propane (CFC-217), Dichloro Hexafluoro Propane (CFC-216), Trichloro Pentafluoro Propane (CFC-215), Tetrachloro Tetrafluoro Propane (CFC-214), Pentachloro Trifluoro Propane (CFC-213), Hexachloro Difluoro Propane (CFC-211), Bromo Chloro Difluoro Methane (Halon-1211), Bromo Trifluoro Methane (Halon-1301), Dibromo Tetrafluoro Ethane (Halon-2402), R-500, R-502.
20119
Industry
8
Industry of chemicals listed in Schedule 1 of the Chemical Weapons Convention as incorporated in AppendixI to Law Number 9 Year 2008 concerningUse of Chemicals as Chemical Weapons
20119

Industry
9
Alcoholic hard liquor Industry
11010
Industry
10
Alcoholic beverages Industry: Wine
11020
Industry
11
Malt beverages Industry
11031
Industry
12
Organization and operation of terminals for passenger land transport.
52211
Transportation
13
Organization and operation of weigh stations
52219
Transportation
14
Telecommunication/aids to shipping navigation and Vessel Traffic Information System (VTIS)

52221

Transportation




15,
Provision of air navigation services
52230
Transportation
16
Administration of testing of types of motor vehicles
71203
Transportation
17
Management and operation of radio frequency spectrum and satellite orbit monitoring stations.
61300

Communication and Information
18.
Public museums
91021
Education and Culture
19
Historical and archaeological remains (temples, Sultan’s palaces, inscriptions, ruins, ancient buildings, etc.)
91023

Education and Culture
20
Gambling and Casinos
9200

Tourism and Creative Economy
Further information and service  please  please contact:
lightferrash@gmail.com
+62 8129 0386 526 ,+ 62 8190 6437 917 (phone)
+62 8778 3943 291 (whatsup)
Or visit us at : Meruya selatan St.no 3  rt/rw 04/07 ,Meruya Selatan ,Kembangan, West Jakarta

The Free Hold Rights or The Usage Rights? (Can Foreigner Own the Property in Indonesia part I)

                                                                                                                 Many to confu...