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Law & Regulation                                                      

 

Property Ownership Procedure.

 

Adopted from Indonesian Agrarian Law No.5 year 1960

Indonesia's land legislations do not recognize the concept of freehold land rights. Instead the various rights attached to the land are subdivided into separate titles. 
The Basic Agrarian Law (Law No. 5 of 1960) recognizes type of rights on land of non-state-forest area, whereas for the state-forest area, the Law No. 5 of 1967 on forestry is applied. To foreign as well as domestic investors, the following three main rights are significant; the Land Cultivation Right (Hak Guna Usaha, abbreviated as HGU), the Right of Building on Land (Hak Guna Bangunan, abbreviated as HGB) and the Right of Use on Land (Hak Pakai, abbreviated as HP).  These rights authorize the use of land in some ways, and their differences are mainly on the duration of validity, the nature of utilization, the opportunity to mortgage (to use as an asset or collateral) and proof of title: 

a.   The Land Cultivation Right (HGU) is the right to use a State Owned Land for the purposes of agriculture namely plantation, fishing, or cattle rising. By law the title is granted for a maximum period of 35 years, but can be extended to 25 years if the land is properly used and managed. This title of right is given to Indonesian individual(s) or legal entities domiciled in Indonesia including PMA companies. It can be used as a collateral or transferred to other party with the government approval. 

b.   The Right of Building on Land (HGB) is the right to construct and own buildings on a piece of land that one has purchased. The title is granted for a maximum period of 30 years and can be extended for a maximum period for 20 years for Indonesian individual(s) and /or legal entities domiciled in Indonesia, including PMA companies, and can also be used as a collateral or transferred to other party. This is also applicable and generally granted to tenants in industrial estates. 

c.   Right of Use on Land (HP) is the right to use land for a specific purpose and granted for a period of 25 years and can be extended for period of 20 years or as long as the land is used for a certain (normal) utilization. Now, this right can also be used as a mortgage. In addition, it can also be transferred to other party through a government approval. 

A dwelling house or a residence that can be owned by a foreign person shall be:

  • A separate house constructed on a piece of land with the right of utilization on state land or controlled on the basis of an agreement with a land holder; or:

  • An apartment constructed on a piece of land with the right of utilization on state land.

  • Security Right (Hak Tanggungan) This right was created by Law No 4 of 1996 Re Security Title on Land and Land-Related Objects.  Prior to the enactment of this law, mortgage law governed by the colonial legislation concerning what was called hipotheek (hypothecation) which was the only part of the Indonesian Civil Code relating to land, which was not expressly revoked by the Basic Agrarian Law. The security right on land and land-related objects corresponds to the mortgage interest in common law jurisdictions.

  Visa and Immigration Permits.

 

 

Socio Culture Visa

Initial Cost: IDR 200,000

Validity: 6 months

 

Document from Applicant:

    Copy of Passport.

      Photograph: 3x4 cm (red background).

 

This visa needs to be extended each month after the first 60 days on a monthly basis, the cost to extend this visa is IDR 450,000 - IDR 500,000.  Please be noted once you leave Indonesia your visa will be automatically cancelled.

 

Single Entry Business Visa.

Initial Cost: IDR 600,000 

Validity: 6 months.

Business Visa holder has a right to arrange a meeting with business association, doing a company inspection very much use by the investor or businessman who wants to make a research for set up a cooperation ship with future business partner.  In order to get this visa, you need to be sponsored by Indonesian Company.  This visa needs to be extended each month after the first 60 days on a monthly basis, the cost to extend this visa is IDR 450,000 - IDR 500,000.  Please be noted once you leave Indonesia your visa will be automatically cancelled.

 

Document from Indonesian Sponsor:

  • Copy of Indonesian Identity Card.

  • Copy of Company Registration Number.

  • Copy of Tax Registration Code Number.

  • Company paper with Letter Head.

  • Company Stamp.

 Document from Applicant:

    Copy of Passport.

      Photograph: 3x4 cm

 

Multiple Entry Business Visa.

Initial Cost: IDR 1,200,000

 Validity: 1 year.

 

Basically this visa is similar with Business Visa with more facilities: Multiple Exit - Entry Permit that means that this visa holder can come and leave the country any time without the visa being cancelled, to obtain this Visa you need to be sponsored by Indonesian company.    This visa needs to be extended each month after the first 60 days on a monthly basis, the cost to extend this visa is IDR 450,000 - IDR 500,000.  Each time you enter Indonesia in within 12 months, you can stay up to 60 days.

 

        Document from Applicant:

  • Full copy Of passport

  •  Photograph: 3x4 cm 8 pieces.

Document from Indonesian Sponsor:

  • Copy of Indonesian Identity Card.

  • Copy of Company Registration Number.

  • Copy of Tax Registration Code Number.

  • Copy of Company Article of Association.

  • Company paper with Letter Head.

  • Company Stamp.

 

 KITAS & Working Visa.

 Initial Cost: IDR 4,500,000

 

Foreign work in Indonesia must have a working Visa with validity:

5 years for the company owner and 3 years for the company staff.  This Visa needs to be renewed every year and the renewal time will take 15 - 30 working days.  To obtain this visa you need to be sponsored by company reside in Indonesia.

 

Document from Applicant:

  •      Full copy of Passport.

  •         Curriculum Vitae.

  •   Copy of Diploma Graduation.

  •      Photograph: 2x3cm, 3x4cm, 4x6cm 12 pieces each size.

  • Company sponsor details documents.

 Family Visa (dependant).

 Initial Cost: IDR 3,500,000

Family visa is design for foreign married with Indonesian or the dependant of foreign worker.  Validity of this visa is adjusted to the primer visa holder.

 

 

Document Required :

 

a. Indonesian Husband.

  • Copy of Family Identity card.

  •  Copy of Indonesian husband Identity card.

  •  Copy of Marriage Certificate.

b. Foreign Husband (for foreign wife and children).

  • Full copy of Passport.

  • Full copy of Immigration Book (blue book).

  • Full copy of Police Registration book.

  • Copy of Marriage certificate.

c. Document from applicant:

  • Wife; Full copy valid passport.

  • Copy of Marriage Certificate, Photograph: 2x3cm, 2x4cm, and

  • 4x6cm each size: 12 pieces.

  • Child (under 18 years old); Full copy of passport, copy of birth certificate, photograph: 2x3cm, 3x4cm, and 4x6cm each size: 12 pieces

  • A Wife cannot sponsor a Husband.

  • Family Visa holder is not allows to work.

  • Social Culture Visa is convertible to Family Visa.

 Retired Visa.

 Initial cost: IDR 7,500,000

This Visa is valid for 5 years

 

 

To have a retirement visa the applicant should qualify for the following condition:

  • The applicant must be minimum 55 years of age.

  • Own or rent a private property (House) in Bali.

  • Employed 2 Indonesian maid or housekeeper.

  • Received monthly pension as much as: US$ 2.500

Document Required:

  • Full copy of passport.

  • Copy of Marriage Certificate or Divorce.

  • Photograph: 2x3cm, 3x4cm, 4x6cm 12 piece each photo.

 Visa extension needs to be made every year and the processing time will be 30 days and the cost of each extension: IDR 7,500,000

 

 

Notice ! 

Before traveling out of Indonesia, KITAS holder has to obtain  Exit and Re-entry permit  and pay Fiscal as much as IDR 1,000,000.

 

Exit and Re - entry Permit Cost:

- Single (valid for 3 months): IDR 450,000 - IDR 550,000

- Multiple (valid for 6 months): IDR 600,000 - IDR 800,000

 

Land and Building Tax.

Land and Building Tax is payable annually on land, buildings and permanent structures.  The effective rates are nominal, typically not more then one tenth of one percent per annum (0.1%) based on the Government Value of the land and building.




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info@balidreamhome.com

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