Gapura Bali will be hosting a seminar Thursday 12 July, where everyone can find out how foreigners and foreign entities can legally own property in Bali.
This event will be held in conjunction with the Real Estate Association Of Indonesia (AREBI) at Finns Recreation Club (formerly the Canggu Club) from 5pm until 6.30pm.
So why do we need clarification and updates?
During our recent conversation with Gary Dean from Okussi Associates, we asked him for a brief history on Indonesian land laws, here is what he had to say:
"Indonesian Land Law is quite different indeed to the laws that apply in most Western countries. Foreigners wishing to use or purchase land for whatever purpose need to be aware of these differences and not assume that legal conventions that apply in their home countries necessarily apply in Indonesia. Legal certainty in Indonesia has always been rather precarious, not least in the realm of land ownership. However, secure land title for foreigners is possible if correct procedures are observed."
Before September 1960 Indonesian land law comprised a mind-boggling cacophony of traditional Adat law, Dutch colonial laws, Western civil law, and laws enacted by the Indonesian government from the time of independence.
The basis of modern Indonesian land law is Law Number 5 of 1960, also referred to as UUPA (Undang-Undang Pokok Agraria, or the Basic Agrarian Law Act).
"Bumi, air dan kekayaan alam yang terkandung di dalamnya dikuasai oleh Negara dan dipergunakan untuk sebesar-besar kemakmuran Rakyat."
Translated as “The land, waters and natural wealth contained within them are controlled by the State and shall be utilised to increase the prosperity of the People.”
This article of the constitution is clearly socialist in nature, and fairly accurately reflects the popular views of the vast majority of the Indonesian population, both at the time of the framing of the constitution up until the present day. Indonesians generally, and Javanese in particular, tend to be communalistic in their outlooks, in contrast to the more individualistic perspectives that dominate the thinking of Western and certain other industrialised nations.
The forms of land title regulated by the UUPA and issued by the National Land Board (BPN) include:
To foreign as well as domestic investors, the most important titles to be aware of are Freehold Title (Hak Milik), Cultivation Rights Title (HGU or Hak Guna Usaha), Building Use Title (UGB or Hak Guna Bangunan) and Right to Use Title (HP or Hak Pakai).
How can a Foreigner legally obtain Indonesian land?
Join us to find out.
Admission IDR 150,000 for members IDR 200,000 for non-members.
Cost includes light snacks.
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