A legal framework conducive to investment
The authorities have put in place a legal framework conducive to investment, illustrated by the complete opening up of the Indonesian real estate market to foreign investors.
Legal status
There are several types of property ownership status in Indonesia
It’s possible to invest in complete security by strictly following procedures.
A number of specialized notaries in Bali are indispensable to you.
There are several categories of right under agrarian law:
1) HAK MILIK (right of ownership) or freehold
This title deed can only be obtained by an Indonesian citizen. Nominee agreements are illegal in Indonesia.
2) HAK PAKAI (right to use) or right to use
Similar to a renewable lease, valid for foreign individuals in particular (under certain conditions), it must be exclusively for residential use.
This right of use is fully recognized in Indonesian law, and can be drawn up directly in the name of the foreign buyer.
This right-of-use contract is for 25 years and can be renewed three times; it is transferable between foreigners.
3) Leasehold / HAK SEWA (HS) / Land lease :
The most common way for foreigners to “access” property in Indonesia is as follows:
Leasehold is a private contract between the owner of a property and a tenant, for a fixed period, usually 25 or 30 years and renewable, drawn up and signed before a notary (Akta Notaris – “Salinan”).
Every individual is entitled to it, regardless of nationality.
The contract gives full authority to modify, build, commercially exploit or re-let the premises.
It is transferable to heirs and successors and can be resold.
Renewals
It’s best to plan for them from the outset.
If the property and its facilities are well located, the leasehold investor can expect a rapid return on investment thanks to a high occupancy rate and an excellent rental yield.
Professional support for your transaction
Investing in real estate in Bali is a decision that requires advice, as some professions are not regulated as they are in Europe and France in particular. We’ll be there to support and guide you through all the steps involved in your investment.
Our local presence, a manager fluent in Indonesian and Balinese, our French-speaking staff and our network of lawyers and notaries are your guarantors of your interests and will validate all the points to secure your investment…
All transactions must be notarized. A provision equivalent to around 10% of the total budget will be requested to contractualize the project.