Indonesian property Law and investment Law updates

 

Bali Property law updates2011

The government has back-pedalled on a proposal to allow foreigners to own property in Indonesia for 90 years and will now only simplify the extension process and not change the maximum length of title from the current 70-year tenure.

The changes are contained in a new regulation which will be presented to President Susilo Bambang Yudhoyono for approval before the end of May, the Ministry of Public Housing’s Jamil Ansari said on Wednesday. The regulation is expected to take effect within two months of the president approving it, he said.

“The draft review of the regulation is almost finished and we expect it will be ready by the end of May,” Jamil said.

Currently, foreigners can hold property for 25 years. After the term expires, they may renew their property rights with the National Land Agency (BPN) for an additional 25 years and then extend it once more for 20 years, making for a total of 70 years.

Under the new regulation, foreigners will be able to renew for the additional 25- and 20-year terms at the same time, effectively meaning they will be able to renew for 45 years.

“Many foreigners find that the extension process for their property is really unpractical. Therefore, we decided to simplify it,” Jamil said.

Teguh Satria, chairman of the Indonesian Real Estate Developers Association (REI), said it would make more sense for foreigners to be able to own property outright so they did not have to go through time-consuming extensions.

Not allowing foreigners to own property meant Indonesia’s property sector was less competitive compared to Singapore and Malaysia, Teguh said.

He said there were around 83,000 foreigners living in Indonesia. If 10,000 of those foreigners bought a $250,000 apartment it would translate into $2.5 billion of foreign investment, Teguh said.

2010

The House of Representatives finally passed the proposed investment bill in to law last month. It has not been signed yet by the President but this is expected soon. Aimed at replacing two separate 30-year old laws for foreign and domestic investors, Law No. 1/1967 and Law No. 6/1998, the 2007 investment Law signals a much better investment climate than its predecessors. This is reflected in the following features:

  • More certainty regarding land rights holding. Cultivation rights (HGU) are extended up 95 years from previously 35 years. Building rights (HGB) may be obtained for up to 80 years from previously 30 years. Land use (Hak Pakai) rights are also extended from previously 25 years to 75 years.
  • Simplified business related licenses. Subject to further detailed regulations, applications for business related licenses will be served by the Investment Board of Investment (BKPM) under a one-stop service system. BKPM will act as a coordinator among government agencies, departments and regional administrations. Within the government, BKPM's position will also be elevated from a part of the trade department to a non-departmental bureau responsible directly to the president.
  • Domestic and foreign investors are treated on an equal footing. Both groups will generally have the same access to any business areas despite the government requirement to reserve certain areas for small and medium enterprises and cooperatives. The government will a "negative list" in due course. This will contain some prohibited areas for investment or only open under certain conditions. However, if a business area is not on the list, investors can enter the area without restriction. At the moment, the negative list has not been issued yet.
  • Longer time for temporary stay permits and shorter time to get permanent ones. A temporary stay permit (KITAS) may be granted for up to 2 years, twice as long as the current standard. The new law allows a KITAS to be converted into a permanent stay permit (KITAP) after a two-consecutive year of stay in Indonesia, much shorter than the current standard of five years.
  • Removal of divestment requirement to local partner. Unlike its predecessor, the new law is silent about divestment requirement.


Download the whole PriceWaterHouseCoopers article.

2009

Negative list of investments
More clarity on which industries are closed/open to investment, but still some ambiguities. Restrictions exist on capital participation for foreign investors. Applies only to new applications for investments. Existing approvals are generally unaffected.

USD accounting for tax
Collective investment contracts (KIK) may qualify. Approval process in 25 days. May be back to Rupiah accounting - but then have to wait five years to re-apply USD accounting approval.

Energy law
serves as a basis for the state’s broad energy policy

Download the whole PriceWaterHouseCoopers article.

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Foreign consulates in Bali

Passport Consulate Bali

AUSTRALIA
(also rep. Canada, New Zealand, Papua New Guinea & other commonwealth in emergencies)
Australian Consulate
Jalan Prof. Moh. Yamin No.4 Renon - Denpasar.
Phone : + 62 361 235 092, 235 093
Fax : + 62 361 231 990
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

BRITISH
British Honorary Consul
Cat and Fiddle Restaurant
Jalan Mertasari No. 2 Sanur
Phone/Fax : + 62 361 282 968
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

CZECH REPUBLIC
Consulate of the Czech Republic
Jl.Pengembak 17, Sanur
Phone : + 62 361 286 465
Fax : + 62 361 286 408
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

FRANCE
Consular Agency of France
Jalan mertasari Gg.II No. 8, Sanur Kauh - Denpasar.
Phone : + 62 361 285 485
Fax : + 62 361 286 406
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

GERMANY
Consulate of Germany
Jalan Pantai Karang 17, Sanur Denpasar.
Phone : + 62 361 288 535, 288 826
Fax : + 62 361 288 826
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

ITALY
Honorary Vice Consulate of Italy
Lotus Enterprise Building
Jalan Bypass Ngurah Rai, Jimbaran, Denpasar
Phone/Fax : +62 361 701 005
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

JAPAN
Consulate Office of Japan
Jalan Raya Puputan, Renon Denpasar No.170
Phone : + 62 361 227 628
Fax : + 62 361 231 308
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

MEXICO
Honorary Consulate of Mexico
Puri Astina Building
Jalan Prof. Moh. Yamin 1-A, Renon, Denpasar
Phone : + 62 361 223 266
Fax : + 62 361 244 568
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

NETHERLANDS
Consulate of The Netherlands
Jalan Raya Kuta No: 127, Kuta
Phone : + 62 361 751 517 Fax : 752 777
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

NORWAY
Jalan Jayagiri VII/10 Denpasar
Phone/Fax : + 62 361 234 834

DENMARK
Royal Danish Consulate
Mimpi Resort, Kawasan Bukit Permai, Jimbaran
Phone : + 62 361 701 070 (ext 32)
Fax : + 62 361 701 073, 701 074
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

SPAIN
Honorary Consulate of Spain
Jl.Raya Sanggingan, br lungsiakan, Kedewatan Ubud
Phone : + 62 361 975 736 Fax : 975 726

Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

SWEDEN & FINLAND
Consulate of Sweden and Finland
Segara Village Hotel
Jalan Segara Ayu, Sanur 80228
Phone : + 62 361 288 407 Fax : 287 242
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

SWITZERLAND & AUSTRIA
Consular Agency of Switzerland
Swiss Restaurant, Jalan Werkudara, Kuta
Phone/Fax: + 62 361 751 735 / 754 457
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

UNITED STATES OF AMERICA
Consular Agency of the United States of America
Jalan Hayam Wuruk 188, Tanjung Bungkak Denpasar 80235
Phone/Fax: + 62 361 233 605 / 222 426
Email : This email address is being protected from spambots. You need JavaScript enabled to view it.

Bali Weather


Because of its relative proximity to the equator (about 6 degrees South), the climate in Bali is tropical with high temperatures throughout the year. Basically daytime temperatures in Bali are on average 30°C / 86°F. Sunshine is abundant and daylight hours are quite long with sunrises early in the morning and sunsets normally at around 18:30.

Bali only has a wet season, normally from September to February, and a dry season during the remaining period of the year. Even during the rainy season, Bali typically does not suffer from prolonged showers (as apposed to parts of Java) with downpours usually not lasting more than an hour and most often in the afternoon or at night.

Bali tropical weatherThe central mountain area in Bali however can get seriously cooler especially at night time so bringer a sweater is highly recommended...

Sea breezes can definitely bring relief to humid days in Bali. The winds that blow along the coast are soothing and offer that little bit of relief. There may be monsoons and landslides from time to time, but there are no other major weather disasters that could potentially impact your trip.

It is also important to figure out what you want to do in Bali, so you can determine what season is best for you. For example, if you are looking to scuba dive, you might want to travel during the dry season because heavy rains may impact your plans and forbid you from entering the water. However, if you are just looking to sit back and enjoy, then there is really no bad time to visit.

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