Government Regulation (Peraturan Pemerintah) No. 103 – 2015 on the Ownership of Dwelling of Residency House by Foreign Persons Domiciled in Indonesia

This is new regulation about foreigner’ ownership on home and property in Indonesia. Finally, foreigners can have a property in Indonesia with the Right to Use.  The polemics regarding the legal ownership of a house or dwelling by foreigners seem to be terminated.  President Joko Widodo has signed Government Regulation valid from 28 December 2015.

Herewith the global resume about the regulation.

Article 1 : Definition

Foreigner based in Indonesia, hereinafter called the foreigner, is a person who is not an Indonesian citizen who benefits, does business, works or invests in Indonesia. The objects of the property are single house or apartment unit.

 

Article 2 : Limitation on Ownership

Foreigner can use a house for residence or dwelling with the Right to Use (Hak Pakai). The property is inheritable if the foreigners died.

 

Article 3 : Ownership of Property for Mixed Marriage

The Indonesian citizen who marries with foreigner, can own land on certificate same right as an Indonesian citizen. The rights to the land is not a joint property that is evidenced by the separation agreement of assets between the husband and the wife, which is made by notarial deed.

 

Article 4 : Objects of the Property

The foreigners can own a property in Indonesia on the Right to Use (Hak Pakai)

 

Article 5 : Details on the Right to Use

 

Article 6 : Period of the Right to Use

In the beginning, the period of the Right to Use is 30 years, extendable up to 20 years, and is further renewable up to another 30 years.

 

Article 7 : Details on Period of the Right to Use

 

Article 8 : Condition

Foreigners has the Right to Use the property  as long as they have valid stay permit in Indonesia.

 

Article 9 : Condition

 

Article 10 : The Heirs of the Property

When Foreigner or heir who is a Foreigner, who uses a house built on the grounds of the Right to Use or on an agreement with the holders of land rights is no longer domiciled in Indonesia, within a period of one (1) year shall release or transfer the right on the house and land to other party which meets requirements.

 

Article 11 : Other related Regulations

Procedures for discharge, administration and transfer of property rights are stipulated in the Ministerial decision.

 

For Government Regulation No. 103/2015_Indonesian text PP_Nomor_103_Tahun_2015-ttg-pemilikan-rumah-tempat-tinggal-atau-hunian-oleh-orang-asing-yang-berkedudukan-di-Indonesia

For Government Regulation No. 103/2015_English text Government Regulation PP No. 103 2015_EN