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maulana

Would like to take my son to study in Indonesia for 2years how to get sponsor and visa ,can I buy property in Indonesia being an Australian citizen.

Yud

Welcome on Expat.com maulana ;)

I hope you will get some responses/suggestions soon.

Regards

NoVARealtorBrian

Mualana,

There is no distinction in the Indonesian land law for being an Aussie; you are nonetheless still considered a "foreigner" despite your very close proximity to the archipelago of Indonesia.

The short answer is: yes you can "buy" or "own" real property here as a foreigner; but with true or absolute property ownership rights as a freehold estate or in fee simple form of "ownership" (Hak Milik in Indonesian Bahasa). You will only be able to obtain a leasehold estate (Hak Pakai)or right of use and there are restrictions or strings attached...

There are other ways to truly OWN and buy real property here in Indonesia as a foreigner.  I have written numerous articles on this subject on my Indonesia Expat.com site.  I am a REALTOR in America...

brianindonesiaexpat.blogspot.com/2010/06/indonesia-considers-allowing-foreign.html

[Other links moderated]

NoVARealtorBrian

I have all the connections and resources you need to accomplish your objective(s). Contact me when you are ready to move forward with your plans...

Correction:  in second paragraph of my first answer above the word NOT was omitted.  It should read,

yes you can "buy" or "own" real property here as a foreigner; but NOT with true or absolute property ownership rights as a freehold estate or in fee simple form of "ownership" (Hak Milik in Indonesian Bahasa). You will only be able to obtain a leasehold estate (Hak Pakai)or right of use and there are restrictions or strings attached...

indo_expat

why would you like your son to study in Indonesia while many of Indonesian like to study abroad to get beter quality of educations and plus other language benefits?:P

and YES you can buy the property as long as you have money but you can not own it.

Fred

The property question is easy.

NO.

Only Indonesians can own land in Indonesia. It's in the constitution and won't be changing any time soon.
Rent or lease is fine.

NoVARealtorBrian

Allow me to clarify the issue on a foreigner "owning" or "buying" real property in Indonesia. It CAN be done legally.  In fact I just helped a fellow from Malaysia "buy" a strata tile unit in Jakarta.

A full discussion can be found at:

brianindonesiaexpat.blogspot.com/2011/02/foreign-property-ownership-to-be.html

Fred

I understand it can be done if it's in the name of an Indonesian national.
Of course you have the risk they'll sell it from under you and you have zero comeback.
I owned a property before I was aware of the law and found out the possible pitfalls, all too nearly the hard way.
I sold it a year or so ago, thus the problem has gone away but it had the potential to become a total loss.

Take extreme care if you intend to try buying. Way better to rent.

Fred

Added.
Even an Indonesian/foreign married couple can't own without a prenup stating the foreigner has no title to any land owned.

In Indonesia, all married couple's property is owned 50/50.
Since a foreigner can't own land, neither can the 'other half' without a prenp as above.

NoVARealtorBrian

Very interesting and productive discussion all.  To "mas fred", what is the source of your information.  Can you provide a specific legal citation, precedent or reference? 

I have perused UU 5/1960 or UUPA (Undang-Undang Pokok Agraria - The basic agrarian land law) as well as Article 33 Section 3 of the Indonesian Constitution (Undang-Undang Dasar 1945/UUD 1945) and find no express stipulation regarding prohibition of holding deed or title to real property in joint tenancy, "tenancy by the entirety" (married couples) or as tenants in common with respect to mixed marriages. However, I do understand that there are other several other laws with overlapping articles concerning transnational marriages and property ownership, including the Basic Agrarian Law, the 1974 Marriage Law, Law No. 7/1984 on the ratification of Convention of Elimination of All Forms of Discrimination against Women (Cedaw), the Citizenship Law and the 1996 Government Regulation on property rights. 

The 1996 Government Regulation on foreign ownership stipulates that only Indonesian citizens can own property. However, that changes if an Indonesian marries an expatriate.

On the prenuptial thing, it looks like you may be right though. An Indonesian (man or woman) in a transnational marriage would lose their right to possess land because according to the Marriage Law and Law No. 7/1984 on Cedaw ratification every possession that is purchased by a mixed couple after they are married is considered a collective possession. The couple would lose the right to own land because one of the parties was an expatriate. 

To circumvent or navigate this as you pointed out, if they managed to have a prenuptial agreement before they got married, then the house that had been bought in the name of the Indonesian wife or husband's name would not be a problem because the house will be considered the Indonesian wife or husband's possession and not that of the foreign husband or wife.

We'll definitely have to watch for legislation affecting all this, as this issue of transnational marriages in Indonesia with respect to children, property rights, inheritances, etc is a big issue...

Fred

NoVARealtorBrian wrote:

To "mas fred", what is the source of your information.  Can you provide a specific legal citation, precedent or reference? 

The 1996 Government Regulation on foreign ownership stipulates that only Indonesian citizens can own property. However, that changes if an Indonesian marries an expatriate.

On the prenuptial thing, it looks like you may be right though. An Indonesian (man or woman) in a transnational marriage would lose their right to possess land because according to the Marriage Law and Law No. 7/1984 on Cedaw ratification every possession that is purchased by a mixed couple after they are married is considered a collective possession. The couple would lose the right to own land because one of the parties was an expatriate.


Why should I bother? You just did it for me. A foreigner can lease or rent but can't own.
I'll repeat. I owned property before I was aware of the law and could have lost it. I took a look at the law at that time and found no way out except to sell.
As it happens, I moved anyway so it had little real effect but it could have turned bad.
Even your earlier posts use inverted commas when you say "own". That suggests you are well aware of the law and have some plan to get around it.

I'll repeat my earlier answer.

A foreigner CAN"T own property in Indonesia.

NoVARealtorBrian

You stated above, "I owned property before I was aware of the law and could have lost it."

If you are not an Indonesian national or citizen, then you just contradicted yourself. As you point out, a foreigner cannot own property in Indonesia.  If you are a foreigner then you never really owned it, did you? 

This is one of the problems with symantics, people need to STOP using the words "own" or "buy" when referring to foreigners in real property sales transactions...  They cannot "own" or "buy" real property here in a freehold estate.

tutti frutti

Hi Maulana,
If you only stay in Indonesia for 2 years, better just rent.Rental house is very cheap here compare to Australia.
I am in the same shoes, allready here with my two boys more than 2 years, and I am renting too.
Mas Fred is right. A foreigner cant own property in Indonesia. Watch out if anyone says you can own property or offering any help, they are there to make a bugs($).And plenty of it.



If your wife is Indonesian then she can be sponsor for you and your kid.  If not then you have to have indonesian friend for your sponsor.

I think nothing wrong with the indonesian education quality.  There are many international schools in Bali.  Even many of Privat 'National Plus' school are good too. 
At least here there is 'culture' that you cant find in Australia.  Your children will have wide view, not narrow minded.

Fred

Ye godz. This is really easy.

Before I knew the law here, I made the mistake of buying a property. It was held in my wife's name. We had been told that was OK but it wasn't because of the laws governing joint property ownership in marriage.
I bought and paid for a property that could have been taken from me had the wrong people found out.

This is really easy. Anyone that says a foreign national can own land is wrong and maybe even into some sort of con job.

Do I really need to spell it out any clearer than that?

Renting is easy. There are plenty of houses for rent all and all you need to do is call. I'd stay in a hotel for a week or so until you can find something yourself.
Then get the hotel staff to call for you so you don't get a special price.

Quick rules:
Don't bother with anything priced in US$ - This is Indonesia. The only things priced in $ are aimed at people who'll pay too much.
Forget western prices. A 3 bedroomed house in a secured estate in Jakarta can be rented at less that Rp2 million/month.
I'm not familiar with Bali prices but I'm guessing you'll find something in that range.

Nicolaas

When an expatriate buy an apartment here from a developer, the ownership (strata title) actually is still under the name of the developer. The buyer only hold a purchasing agreement between he and the developer. Later on when the apartment is sold to an Indonesian, the above purchasing agreement must be cancelled by another agreement, a new sales and purchase agreement will be made between the developer and the local buyer, and normally the developer will request the strata title to be changed immediately to this local buyer's name (there are taxes involved).

Nicolaas

NoVARealtorBrian

An expat simply cannot "buy" or "own" real property in Indonesia legally. As I have stated before folks need to stop using the terms "buy" or "own" when referring to foreign nationals or expats involved somehow in real property transactions.  They simply cannot, repeat CANNOT legally own the property; therefore they never "bought" it in the first place. 

True and absolute ownership of the property (freehold estate or fee simple) = Hak Milik.  A foreign national cannot own or have deed or certificate to real property in Hak Milik.  A limited term and "strings attached" right of use (leasehold estate) = Hak Pakai. Right to rent or lease = Hak Sewa.

If the true ownership (title, deed or Hak Milik certificate) is still in the developer's name, then the person (expat or Indonesian) does not truly "own" it then.

Why would I want to "buy" an apartment in strata title or condominium form of "ownership" of real property in Indonesia (or elsewhere in the world) if I only have an arms length "purchase agreement" (which is probably not any more valuable than the paper it is written on) and do not hold clear and free title or deed to my unit, or landed property, and am at the mercy of the developer, a "nominee" or other third party? 

If I don't own it.... I don't own it!  Simple

As others have pointed out here in this great thread, it's much easier to just rent a property here; you can pick up and go when you want to as opposed to trying to "sell" a property you don't really own in the first place which may take quite a LONG TIME to sell and get any equity you might have in the property out of it.

lukereg

I am getting married and I have to sign a pre nuptial declaring something about ownership of land etc. I know I can buy property here but to own it, no that bit cant be done.

Mas Fred is right. Take care when entering into these things.

NoVARealtorBrian

Here's a prime example of what I have been talking about in this thread. http://www.whatsnewjakarta.com/web3/eve … boGroup=69 property listing.

It states,

"For Sale:  Leashold, 30 years (up to 2035) with guaranteed 30 year extension (up to 2065)"

1)  I wouldn't really own it or be able to pass it on to my heirs through an inheritance.

2) I probably cannot have a mortgage finance on it since as I understand it banks in Indonesia will only finance on Hak Milik (fee simple or freehold estate) form of ownership on a property.

3) NOTHING is "guaranteed" in Indonesia; expect for graft and corruption and a lack of objective and uniform application of the law.   

4) So.... I won't really "own" it now, will I then?? I am not "buying" it either; but rather I would be merely just renting it for an extended lease term.

Foreigners simply cannot and do not "buy" or "own" real property in Indonesia.

brittdoo

Very interesting discussion, but I wonder if Maulana is still interested? Because there is no response from her...

Eko ChannelOne

A Student visa can be obtain through application to the Immigration General in Jakarta, but this will required complete legal paper and permits from the school where your son will study at.

This student visa is yearly and required extension every year, here in Bali.

About buying a property you still can do that but please note that the supreme land right in Indonesian is HAK MILIK or FREE HOLD and considering that Indonesian Agrarian Law is pretty old (1960) and hasn't been update yet, the law remain the same,NOT one foreigner can own FREE HOLD property the saves way is having a long term lease, or if you have a trustworthy nominee.

Cheers,

msq2220

Citizens of Pakistan How obtain an approval from the authorities in Indonesia prior to applying for a visa. To obtain an approval please follow the following instructions:

bundy2

hope u got a lot of money for his study..schooling for a westerner is expensive..only an Indonesian can own property...if your name was on a property certificate..it would be an illegal document.Maybe a little different if married...but the Gov.t believes all land belongs to the Indonesian people..Not like silly Australia.cheers.

Fred

bundy2 wrote:

hope u got a lot of money for his study..schooling for a westerner is expensive..only an Indonesian can own property...if your name was on a property certificate..it would be an illegal document.Maybe a little different if married...but the Gov.t believes all land belongs to the Indonesian people..Not like silly Australia.cheers.


Schooling costs depend on the school you choose, not your nationality. Most westerners choose expensive schools but that's choice, not obligation.
The expensive schools do tend to be very good but some local and much cheaper schools are now starting to do the Cambridge curriculum and are getting pretty good at it. My daughter goes to such a school and will be taking check point 1 in grade 6, moving on to IGCSEs and A levels later.
Rp 1.5 million/month and all tuition in English except Indonesian language lessons.

The government might well believe all land belongs to Indonesians but that's a direct result of colonialism and Indonesia's independence struggle. Given how that bit of history went, you can understand why that point in Indonesian law isn't going to change this week.
There are also practical advantages for Indonesians as the law reduces the risk of locals being priced out of areas because tourists with more cash than brains would buy up property at western prices making it impossible for locals to buy at all.

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