Selasa, 30 Agustus 2022

Types of Remission in Indonesia

 
(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Several Important Legal Permit for Apartments", "What's The Difference Between Police Report and Public Complaint?", you may read also "How to Open a Police Report in Indonesia?" and on this occasion we will discuss about 'Types of Remission in Indonesia'.

In the flow of punishment in Indonesia, we will be faced with a long process. The final stage of the process is the correctional process. In the correctional process as intended, there is a term that is often expected by inmates/convicts, namely remission. On this occasion we will introduce to the readership about the types of remission that exist in Indonesia.

Legal Basis

Recently, President Joko Widodo signed Law Number: 22 of 2022 concerning Corrections, this Law is a criminal justice subsystem that carries out law enforcement in the field of treatment of prisoners, children, and inmates.[1] As part of the criminal sub-system in Indonesia, this Corrections Law also regulates remission. To understand about this remission, it's good to read the following remission terminology.

Term of Remission

Article 10 point 1 Law Number: 22 of 2022 concerning Corrections regulates the rights of prisoners, namely as follows:[2]
  1. Remission;
  2. Assimilation;
  3. Leave to visit or be visited by family;
  4. Conditional leave;
  5. Leave before release;
  6. Parole; and
  7. Other rights in accordance with the provisions of the legislation.

Although it is regulated in this law, it does not directly describe the term remission. Therefore we will refer to other sources of law, namely: Government Regulation No: 32 of 1999 concerning Terms and Procedures for Implementing the Rights of Correctional Inmates. According to this legal source, what is meant by remission is:[3]
"Remisi adalah pengurangan masa menjalani pidana yang diberikan kepada narapidana dan anak yang memenuhi syarat-syarat yang ditentukan dalam peraturan perundang-undangan. (Free Translation: Remission is a reduction in the period of serving a sentence given to prisoners and children who meet the requirements specified in the legislation.)"

In the Government Regulation as above, we can understand that what is meant by remission is: "a reduction in the period of serving a sentence". This is the essence of the term remission.

Types of Remission in Indonesia

The type of remission is regulated in the Regulation of the Minister of Law and Human Rights (Permenkum HAM) Number 3 of 2018 concerning Terms and Procedures for Granting Remission, Assimilation, Leave to Visit Family, Conditional Release, Leave Before Release, and Conditional Leave as amended by Permenkum HAM Number 18 of 2019 and the Minister of Law and Human Rights Regulation Number 7 of 2022.[4]

In general, the types of remission granted by the government are as follows:[5]
  • general remission, 
  • special remission, 
  • humanitarian remission, and 
  • additional remission.

General Remission

General remission was given on the anniversary of the proclamation of independence of the Republic of Indonesia on 17 August. The amount of general remission given, namely:[6]
  • for prisoners who have been imprisoned for six to 12 months are given one month remission,
  • those who have been imprisoned for more than 12 months are given two months remission, 
  • those who have been imprisoned for two years are given three months remission, 
  • for those who have Those who have been imprisoned for three years are given four months' remission, 
  • those who have been imprisoned for four and five years are given five months' remission, 
  • those who have been imprisoned for six years and so on are given six months' remission.

Special Remission

Special remissions are given during religious holidays according to the prisoner's religion. Religious holidays that are used as references, namely:[7]
  • Islam: Eid al-Fitr, 
  • Protestant and Catholic Christians: Christmas, 
  • Hindu: Nyepi, 
  • Buddhist: Vesak Day. 
  • In addition to these religions (other religions, beliefs, foreigners), usually prisoners will choose a belief that is similar to the religion mentioned above. 
The amount of the special remission is:[8] 
  • for prisoners who have been imprisoned for six to 12 months, 15 days are given remission, 
  • for those who have been imprisoned for more than 12 months to three years, are given one month remission, 
  • for those who have been imprisoned for four and five years, are given one month remission days,
  • for those who have been imprisoned for six years, are given two months remission.

Humanitarian Remission

Remissions for the benefit of humanity are given to:[9]
  • Child prisoners, 
  • Prisoners aged over 70 years, 
  • Prisoners who are declared by prison doctors/expert doctors to have incurable, life-threatening diseases, or require expert treatment, 
  • Prisoners who are sentenced to a maximum sentence of one year.

Additional Remission

Additional remission is given together with general remission. This remission is given if the prisoner performs useful actions, such as:[10]
  • Providing services to the state: The amount of remission is half of the general remission obtained in the current year, 
  • Beneficial to the state or humanity (for example, becoming an organ donor and/or blood donor): Amount remission equal to half of the general remission obtained in the current year, 
  • Assisting coaching activities in correctional institutions: The amount of remission is one-third of the general remission obtained in the current year, 
  • Witnessing perpetrators who cooperate with law enforcement: Remission amount is half of general remission earned in the current year.

And if you have any legal issue with your remission application, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "Jokowi Teken UU 22/2022 tentang Pemasyarakatan", sulbar.kemenkumham.go.id., Diakses pada tanggal 30 Agustus 2022, https://sulbar.kemenkumham.go.id/berita-kanwil/5662-jokowi-teken-uu-22-2022-tentang-pemasyarakatan
2. Law Number: 22 of 2022 concerning Corrections.
3. PP No: 32 Tahun 1999 Tentang Syarat Dan Tata Cara Pelaksanaan Hak Warga Binaan Pemasyarakatan (Government Regulation No: 32 of 1999 concerning Terms and Procedures for Implementing the Rights of Correctional Inmates).
4. "Jenis-Jenis Remisi Narapidana", nasional.kompas.com., Diakses pada tanggal 30 Agustus 2022, https://nasional.kompas.com/read/2022/04/19/00300081/jenis-jenis-remisi-narapidana
5. Ibid.
6. Ibid.
7. Ibid.
8. Ibid.
9. Ibid.
10. Ibid.

Sabtu, 27 Agustus 2022

Several Important Legal Permit for Apartments

 
(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Strategic Licensing in the Housing Business in Indonesia", "Is the Property Sector in Indonesia Open to Foreign Investment?", you may read also "How To Buy Land In Indonesia?" and on this occasion we will discuss about 'Some Important Legal Permit for Apartments'.

According to Eddy Leks, simply the development of an apartment includes three activities, namely the (1) purchase or acquisition of land, (2) construction, and (3) property management.[1] Land acquisition means the purchase of land from the community by the developer to then be used as a place to build apartments. Construction is the process of building an apartment unit which will be sold by the developer and then occupied by the owner. Property management, in this case apartments, is a series of treatments for after sales apartment units.

Of the three activities above, Several Important Legal Permissions for Apartments are:[2]
  1. Location Permit, is a permit granted to a business actor to obtain the land needed for his business and/or activity and also applies as a permit to transfer rights and to use the land for his business and/or activities.
  2. Application for Building Use Rights (HGB), is (as stipulated in the Basic Agrarian Law) the right to construct and own a building on land that is not one's own for a maximum period of 30 years.
  3. Land Use Permit (IPPT), is a permit granted to a company/agency/institution based on a location permit/location determination that has been approved by the Regent. Land Utilization Permit is one of the administrative requirements to obtain a Building Permit (IMB).
  4. Master Plan or Rencana Induk Tapak (RIT) and City Plan Description or Keterangan Rencana Kota (KRK), is is a space utilization permit, in which case the building to be erected must comply with the City Spatial Detail Plan. City Plan Description or Keterangan Rencana Kota (KRK), is are permits in the form of land designation and use of buildings, intensity of space utilization and other technical requirements imposed by the Regional Government in Certain Locations.
  5. Site Plan (Rencana Tapak), is primarily made for projects with a land area of ​​up to 50 hectares according to proof of land ownership. This letter also stipulates that the size of the land area may not exceed the land area stated in the Space Utilization Permit and Location Permit.
  6. Environmental Impact Analysis (AMDAL), is is a study of the possible changes in socio-economic aspects and biophysical characteristics of the environment due to an activity plan. 
  7. Traffic Impact Analysis (Amdalalin), is a study or study of the traffic impact of a particular activity or business, the results of which will be contained in an "Amdalalin" document or a traffic regulation plan.
  8. Environmental Permits, is a permit granted to every person conducting a Business and/or Activity which is required to have an analysis of environmental impacts in the context of environmental protection and management as a prerequisite for obtaining a Business and/or Activity permit.
  9. Building Permit (IMB), is a permit granted by the Regional Head (Regent or Mayor) to building owners to build new, modify, expand, reduce, and/or maintain buildings in accordance with applicable administrative and technical requirements.

It should be noted, from several apartment permits as mentioned above, the most important in this context is the Building Permit (IMB). As the title of the article above, it is also necessary to add permits that are directly related to flats/or apartments as regulated in Law no. 20 of 2011 concerning Flats, also Government Regulation No. 13 of 2021 concerning the Implementation of Flats, and others related Law. And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "Ini Tahapan Perizinan yang Harus Dipenuhi Pengembang", www.kompas.com., Diakses pada tanggal 27 Agustus 2022, https://properti.kompas.com/read/2018/10/22/190000721/ini-tahapan-perizinan-yang-harus-dipenuhi-pengembang-properti
2. "Strategic Licensing in the Housing Business in Indonesia", www.hukumindo.com., Diakses pada tanggal 27 Agustus 2022, https://www.hukumindo.com/2022/08/strategic-licensing-in-housing-business.html
3. Basic Agrarian Law.

Selasa, 23 Agustus 2022

Strategic Licensing in the Housing Business in Indonesia

(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Is the Property Sector in Indonesia Open to Foreign Investment?", "How To Buy Land In Indonesia?", you may read also "Principles of Buying Land in Indonesia" and on this occasion we will discuss about 'Strategic Licensing in the Housing Business in Indonesia'.

In the previous article, questions have been answered regarding the opening up of the property sector for foreign investment in Indonesia, and on this occasion we will discuss further what permits need to be obtained from the relevant government agencies if you are interested in investing in this sector. Licensing in the property business sector in Indonesia is not small in number, but if there is a simplification, there are at least 9 strategic permits that need to be known. Of course, these 9 strategic licenses are the www.hukumindo.com platform version. Please have a look as described below:[1]

  1. Environmental Permit, is a permit granted to every person conducting a Business and/or Activity which is required to have an analysis of environmental impacts in the context of environmental protection and management as a prerequisite for obtaining a Business and/or Activity permit.
  2. Description of the General Spatial Plan, is divided into several categories ranging from district, city, provincial, to national scales. In general, the content of the spatial plan includes the spatial structure plan and the spatial pattern plan. In practice, this letter is also closely related to another letter, namely the Regional Spatial Plan (RTRW) in an area.
  3. Land Use Permit, is a permit granted to a company/agency/institution based on a location permit/location determination that has been approved by the Regent. Land Utilization Permit is one of the administrative requirements to obtain a Building Permit (IMB).
  4. Principle Permit, is a license from the Investment Coordinating Board (BKPM) that must be owned by business owners or investors who want to open a business or invest in Indonesia. The investment in question can be in the form of Foreign Investment (PMA) or Domestic Investment (PMDN). This license is valid for foreign companies that choose Indonesia as a place to invest.
  5. Location Permit, is a permit granted to a business actor to obtain the land needed for his business and/or activity and also applies as a permit to transfer rights and to use the land for his business and/or activities.
  6. Environmental Impact Analysis, is a study of the possible changes in socio-economic aspects and biophysical characteristics of the environment due to an activity plan. 
  7. Traffic Impact Permit, is a study or study of the traffic impact of a particular activity or business, the results of which will be contained in an "Andalalin" document or a traffic regulation plan.
  8. Site Plan Approval, is primarily made for projects with a land area of ​​up to 50 hectares according to proof of land ownership. This letter also stipulates that the size of the land area may not exceed the land area stated in the Space Utilization Permit and Location Permit.
  9. Building Permit, is a permit granted by the Regional Head (Regent or Mayor) to building owners to build new, modify, expand, reduce, and/or maintain buildings in accordance with applicable administrative and technical requirements.

It should be noted, these licenses are related to one another, this has a logical consequence that one license will not be issued if the other is not or has not been approved. There are various agencies authorized to issue these permits, both at the district/city and provincial levels to the central level. It is better if the licensing process is carried out by human resources with a background in law so that the level of fluency and success is reasonable. It should also be noted that the permissions described in this article are only some, not all. In fact, according to the author's experience when working as a site acquisition in a private company in Jakarta, for housing a permit related to a public cemetery is also required. And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
Reference:

1. "Siapkan 9 Izin Perumahan Ini Sebelum Memulai Bisnis Properti", perizinanjakarta.com., Diakses pada tanggal 23 Agustus 2022, https://perizinanjakarta.com/siapkan-9-izin-perumahan-ini-sebelum-memulai-bisnis-property/

Sabtu, 20 Agustus 2022

Is the Property Sector in Indonesia Open to Foreign Investment?

(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Understanding 5 Steps Foreign Direct Investment In Indonesia", "Latest Negative List of Investments In Indonesia", you may read also "How To Buy Land In Indonesia?" and on this occasion we will discuss about 'Is the Property Sector in Indonesia Open to Foreign Investment?'.

The www.hukumindo.com platform has discussed in several of its articles the legal aspects of investing in Indonesia for foreign nationals. In some cases, there are still questions from some investors regarding which sectors can be entered for investment. This is reasonable because all countries have policies in opening or closing several sectors of their country to foreign investment. On this occasion it will be specific to the property sector, the question then is: Is the property sector open to foreign investment?

Recent Negative List of Investment

In the article entitled: "Latest Negative List of Investments In Indonesia", the following is Closed Business Fields according to Presidential Regulation Of The Republic Of Indonesia Number: 49 Year 2021 Concerning Amendment To Presidential Regulation Number: 10 Year 2021 Concerning Investment Business Sector:[1]
  • Narcotics;
  • Any form of gambling and/or casino;
  • (Convention on International Trade in Endangered Species of Wild Fauna and Flora) CITES-listed fishing;
  • Utilization or collection of coral/coral;
  • Chemical weapons manufacturing industry; and
  • Chemical industry and the ozone layer depleting industry, (6 business fields, previously 20 business fields).
  • The liquor industry containing alcohol such as wine and the beverage industry containing malt are also included in the business sector that is closed in nature.
  • Manufacture of traditional medicinal products.
  • Manufacture of raw materials for traditional medicines for humans.
  • Manufacture of building goods from wood.
  • Coffee processing industry that has obtained geographical indications.
  • Rendang Industry.
  • Ship Industry (phinisi, outrigger, and wooden boats with traditional designs).
  • Non-furniture wood carving handicraft industry, wood carving, reliefs, masks, statues and puppets.
  • Traditional cosmetic industry.
  • Batik Industry (Written Batik, stamp, and combination).
  • Industry of crackers, chips, dents, and the like.
  • Art Gallery.
  • Wooden building goods industry.

Property Sector and Negative List of Investment

As stipulated in Presidential Regulation Of The Republic Of Indonesia Number: 49 Year 2021 Concerning Amendment To Presidential Regulation Number: 10 Year 2021 Concerning Investment Business Sector above, property sector is not in the negative list. So, the answer of the question of: is the property sector open to foreign investment? Is YES. Property sector is open to foreign investment in Indonesia.

In addition, there are several reasons that make the property sector open to foreign investment, one of which is because the need for property products in Indonesia is still quite large. Citing one source in Indonesian online media, the number of housing backlogs in Indonesia is estimated at 13 million. This means that this sector still has opportunities and markets that can be explored and developed.[2] In another words, to meet the needs of a large market, foreign investors are still needed to work on the sector. This huge demand cannot be met by only domestic investment. And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "Latest Negative List of Investments In Indonesia", www.hukumindo.com., Diakses pada tanggal 20 Agustus 2022, https://www.hukumindo.com/2021/08/latest-negative-list-of-investments-in.html
2. "Investor Asing Semakin Serius Merambah Bisnis Properti di Indonesia", kontan.co.id., Diakses pada tanggal 20 Agustus 2022, https://industri.kontan.co.id/news/investor-asing-semakin-serius-merambah-bisnis-properti-di-indoensia

Rabu, 17 Agustus 2022

Why are Apartment Purchases by Foreigners in Indonesia Still Low?

(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Term and Conditions for Foreign Citizens to Buy an Apartments in Indonesia", "Is Foreign Citizens Permitted to Buy an Apartments in Indonesia?", you may read also "Variety of Apartment Ownership Rights in Indonesia" and on this occasion we will discuss about 'Why are Apartment Purchases by Foreigners in Indonesia Still Low?'.

The government has allowed property ownership such as apartments for foreign nationals (foreigners). However, the realization of purchases from foreigners is still minimal. According to the Research Colliers Indonesia, foreigners are still reluctant to buy apartment dwellings in Indonesia are two factors, namely regulatory issues and buyer motivation.[1]

"Actually, the foreign ownership regulations that have been issued are sufficient, but with the employment creation law, it should be more interesting. But it doesn't change much. Why? We can see that apartment sales to foreigners are not growing". According to Research Colliers Indonesia, property ownership regulations in Indonesia cannot be as free as Singapore. There, foreigners easily own property if they have money, so there is a lot of interest in buying. "There is no obligation to visit the apartment or have to work there. It makes people more comfortable," Research Colliers Indonesia explained. In addition, many foreigners in Indonesia are not motivated because they only work for 2 - 3 years. So they are not interested in buying property, even though there are apartments with better prices and quality.[2]

"If you buy it, you will have to sell it again, if you no longer work here, this creates problems, as long as there is a rental option, they will rent it. Except for people who have businesses here. Even then, the population is not large. The market is not large," said Research Colliers Indonesia. For information, the Government issues regulations for foreign ownership property through Government Regulation (PP) Number: 18 of 2021 concerning Management Rights of Land Rights, Flat Units, and Land Registration. Where it is written in article 69, foreigners can own a residential house that has immigration documents in accordance with statutory provisions.[3]

Occupancy that can be owned by foreigners is a landed house, right of use or right of ownership based on an agreement for granting use rights over property rights with the official deed of the land deed. Or flats built on state land parcels, right of use or right of building on state land, land with management rights, and land with property rights. Even though in Article 72 there are limits given to property ownership for foreigners, such as the minimum price, land area, amount, and designation.[4] And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "WNA Ogah Beli Apartemen di Indonesia, Kenapa?", www.cnbcindonesia.com., diakses pada tanggal 17 Agustus 2022, https://www.cnbcindonesia.com/news/20220105141212-4-304814/wna-ogah-beli-apartemen-di-indonesia-kenapa
2. Ibid.
3. Ibid.
4. Ibid.

Jumat, 12 Agustus 2022

Term and Conditions for Foreign Citizens to Buy an Apartments in Indonesia

(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Is Foreign Citizens Permitted to Buy an Apartments in Indonesia?", "Variety of Apartment Ownership Rights in Indonesia", you may read also "What Types of Land Ownership May Company Obtain In Indonesia?" and on this occasion we will discuss about 'Term and Conditions for Foreign Citizens to Buy an Apartments in Indonesia'.

Previously, we discussed the types of apartment ownership rights in Indonesia. From this type of ownership, it can be known about the type of right mat that is suitable for you, especially foreign nationals who want to buy an apartment in Indonesia. In addition, on previous occasions, we have also answered the basic question of whether a foreign citizen can buy an apartment in Indonesia, and the answer is 'yes', for those of you foreign nationals, you can buy an apartment in Indonesia. It's just that, from our previous two articles, there are questions that have not been completed, because of course there are terms and conditions that apply specifically to those of you foreign nationals who want to buy an apartment in Indonesia. On this occasion we are here to try to answer these questions. The following are the terms and conditions:

1. Ownership Time Limit

The conditions for purchasing foreign property in Indonesia are quite strict. There are many provisions that are applied, according to Government Regulation of the Republic of Indonesia No. 103 of 2015 concerning Ownership of Residential Houses or Occupancy by Foreigners Domiciled in Indonesia, as stated in Article 5, foreigners are given the Right of Use for the purchase of a new single house and the Right of Ownership of the condominium unit above the Right of Use for the purchase of a condominium unit for the purchase of a new unit. Referring to Permenkumham (Regulation of the Minister of Law and Human Rights) No. 23 of 2016 Article 1 paragraph 1, the requirements for buying a house for foreigners include: a). Domiciled in Indonesia; b). Not an Indonesian citizen; c). Providing benefits, doing business, working or investing in Indonesia.[1]

The foreign property ownership as referred to is: a). Single house on land (1) Right of Use or (2) Right of Use on Ownership that is controlled based on an agreement granting Right of Use over Ownership with a deed of Land Deed Maker Official (PPAT); b). A condominium unit (flat unit) which is built on a land parcel with the Right to Use. PP (Government Regulation) Number: 103/2015 states, Single Houses are given on land with Use Rights that can be owned by Foreigners given for a period of 30 (thirty) years, and can be extended for a period of 20 (twenty) years. In the event that the extension period referred to ends, the Right of Use may be renewed for a period of 30 (thirty) years.[2]

As for Single Houses on land with Right to Use (Hak Pakai) over Ownership Rights controlled under the agreement as referred to, the Right to Use is granted for an agreed period of not longer than 30 (thirty) years. The Right of Use may be extended for a maximum period of 20 (twenty) years in accordance with the agreement with the holder of the land right, and may be renewed for a maximum period of 30 (thirty) years in accordance with the agreement with the holder of the land right. Article 8 of PP (Government Regulation) Number: 103 of 2015 says: "The extension and renewal as intended is carried out as long as the Foreigner still has a residence permit in Indonesia."[3]

2. Property Must be Occupied

PP (Government Regulation) No. 103 of 2015 also stipulates that if a foreigner or heir who is a foreigner who owns a house built on a land of use rights or based on an agreement with the holder of land rights is no longer domiciled in Indonesia, within a period of one year, he is obliged to relinquish or transfer the rights to the house and land to other parties who meet the requirements.[4]

If within the period as intended (1 year) the right to property of the foreigner has not been released or transferred to another party who meets the requirements, the house (will) be auctioned off by the State, in the event that it is built on land with Right of Use on State land; and the house belongs to the holder of the right to the land concerned, in the event that the house is built on land based on the agreement as intended.[5]

3. The Basis of the Right of Ownership is the Right of Use

Foreigner property ownership has been regulated based on PP (Government Regulation) Number: 103 of 2015 article 5, but the certificate that will be used is the Right of Use, not the Right of Ownership. It is also explained in Article 6 PP (Government Regulation) No. 103 of 2015 that the certificate of use of property rights of foreigners is valid for 30 years and is extended for 20 years, then it will be renewed for 30 years. The total right to use foreign property to live in is 80 years. When the usufructuary rights have been completed, it will return to the property rights party.[6]

4. Applying for Building Use Rights (HGB) for Companies

If the foreigner's property is not a residence but a Company? Then the foreigner can apply for Building Use Rights (HGB) if he has his own PT (Company). The use of HGB on land that does not belong to him has a term of 30 years and can be extended for 20 years.[7]

5. Have a Limited Stay Permit Card (KITAS)

In accordance with what has been stipulated in PP (Government Regulation) Number: 103 of 2015, Article 2 Paragraph 2 that only foreigners who have a residence and permanent permit can buy property in Indonesia. The permit is a Limited Stay Permit Card (KITAS) issued by the Ministry of Law and Human Rights. KITAS is the main requirement for the procedure for buying foreign property. Various requirements that are not easy must be passed to obtain a KITAS, one of which is having to work in Indonesia first. KITAS can be extended for 2 years, with the overall residence permit in Indonesia not more than 6 years.[8]

6. Not all Types of Housing can be Purchased

The question arises, can foreigners buy any type of property they want? Not all types of property can be purchased by foreigners. This is stated in Article 1 Paragraph (2) and Paragraph (3) PP (Government Regulation) Number: 103 of 2015, that only single houses and flats can become the property of foreigners. Flats or condominium units are flats that have the purpose of being a place to live and are connected to public roads. While a single house is a house that has one lot and one of the walls is not built on the boundary of the lot.[9]

7. Property Can't Be Purchased from Second Hand

Keep in mind that foreign property must be purchased directly from the developer or land owner directly without intermediaries or second parties. This is in accordance with the provisions of Permendagri (Minister of Home Affairs Regulation) Number:13/2016, Article 2. This means, before buying the property you want, you as a foreign citizen need to find accurate information about a credible developer.[10]

8. Inheritable Property

As stated in Article 10 Paragraph 2 PP (Government Regulation) Number: 103 of 2015, if the foreigner does not transfer the rights to the property within 1 year, the property will be auctioned by the State or become the property of the holder of the land rights in accordance with the agreement. This regulation applies if the foreigner's property is no longer inhabited within a period of 1 year. Then the foreigner is obliged to relinquish or transfer the property rights to a qualified party. In other words, foreigner property can be inherited both to Indonesians and foreigners.[11]

9. Married to Indonesian Citizen (WNI)

A foreigner is required to marry an Indonesian in order to own property. This is done to complete the requirements for foreigners to purchase foreign property. Thus, foreign nationals have the opportunity to become Indonesian citizens. Foreign Citizens are required to list their property in the Prenuptial Agreement. The property of the foreigners listed will become the joint property (harta bersama) of the spouse.[12]

10. There is a Limit on Property Prices That Can Be Purchased by Foreign Citizens (WNA)

In accordance with Minister of ATR/Head of BPN Regulation 13/2016 and Minister of ATR/Head of BPN 29/2016, the following is the minimum (minimum) price for property purchase for Foreign Citizens in several provinces:[13]
  • Minimum house price that can be purchased by foreign nationals: Jakarta 10 Billion Rupiah, Banten 5 Billion Rupiah, West Java 5 Billion Rupiah, Central Java 3 Billion Rupiah, Special Region of Yogyakarta 3 Billion Rupiah, East Java 5 Billion Rupiah, Bali 3 Billion Rupiah, West Nusa Tenggara 2 Billion Rupiah, North Sumatra 2 Billion Rupiah, East Kalimantan/Borneo 2 Billion Rupiah, South Sulawesi 2 Billion Rupiah and other areas 1 Billion Rupiah.
  • Minimum apartment price that can be purchased by foreign nationals: Jakarta 5 Billion Rupiah, Banten 1 Billion Rupiah, West Java 1 Billion Rupiah, Central Java 1 Billion Rupiah, Special Region of Yogyakarta 1 Billion Rupiah, East Java 1,5 Billion Rupiah, Bali 2 Billion Rupiah, West Nusa Tenggara 1 Billion Rupiah, North Sumatra 1 Billion Rupiah, East Kalimantan/Borneo 1 Billion Rupiah, South Sulawesi 1 Billion Rupiah and other areas 750 Million Rupiah.
And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "Ketentuan dan Prosedur Pembelian Properti Warga Negara Asing (WNA) di Indonesia", www.rumah.com., Diakses pada tanggal 12 Agustus 2022, https://www.rumah.com/panduan-properti/properti-wna-8121
2. Ibid.
3. Ibid.
4. Ibid.
5. Ibid.
6. Ibid.
7. Ibid.
8. Ibid.
9. Ibid.
10. Ibid.
11. Ibid.
12. Ibid.
13. "Ini Dia Minimal Harga Properti Untuk WNA", www.rumah.com., Diakses pada tanggal 12 Agustus 2022, https://www.rumah.com/berita-properti/2018/7/173112/ini-dia-minimal-harga-properti-untuk-wna

Sabtu, 06 Agustus 2022

Is Foreign Citizens Permitted to Buy an Apartments in Indonesia?

(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Variety of Apartment Ownership Rights in Indonesia", "What Types of Land Ownership May Company Obtain In Indonesia?", you may read also "How To Buy Land In Indonesia?" and on this occasion we will discuss about 'Is Foreign Citizens Permitted To Buy an Apartments in Indonesia?'.

As we know that vertical housing such as apartments offers various conveniences to its consumers, especially for the upper and middle segment, which generally prioritizes premium locations. Its strategic location, such as in the middle of the city, is also supported by various capable facilities, making it a residence that is the target of the economically well-off. This kind of housing targets one of its segments, namely expatriates.

What Is Foreign Citizens?

A foreign citizen is a person who lives and domicile in a certain country but is not a citizen of that country, nor is he officially registered as a citizen, such person has various purposes, for example in the context of pursuing education, business or other things. Even though the status of a person is a foreign citizen in Indonesia, that person still has rights and obligations to the country he lives in.[1]

Thus, what is meant by foreign nationals are citizens who hold citizenship outside their current domicile, for example Indonesia, for certain purposes such as study, business, work or other legitimate interests. In the context of this article, what is often the share of the apartment market in Indonesia is expatriates. Expatriate is often used to refer to a highly educated and wealthy foreign worker. Generally work as top management of a particular company.

What Is Apartments According To Indonesia Law?

The definition of flats according to Article 1 point 1 of Law Number 16 of 1985 concerning Flats are: “Bangunan gedung bertingkat yang dibangun dalam suatu lingkungan, yang terbagi dalam bagian-bagian yang distrukturkan secara fungsional dalam arah horizontal maupun vertikal dan merupakan satuan-satuan yang masing-masing dapat dimiliki dan digunakan secara terpisah, terutama untuk tempat hunian, yang dilengkapi dengan bagian bersama, benda bersama, dan tanah bersama”. When translated into English, it roughly has the following meanings:[2]
"Multi-storey buildings built in an environment, which are divided into functionally structured parts in horizontal and vertical directions and are units that each can be owned and used separately, especially for residential areas, which are equipped with shared parts, common things, and common land."

In simple terms, an apartment is a multi-storey building, the term apartment is often distinguished from a landed house, for the author the difference is that the function of the building is made up, not to the side.

Is Foreign Citizens Permitted to Buy an Apartments in Indonesia?

The answer to the question "Is Foreign Citizens Permitted to Buy an Apartments in Indonesia?" is YES legally allowed. The legal basis is Law Number: 1 of 1974 concerning Agrarian Principles, then Law Number: 11 of 2020 concerning Job Creation. 

President Joko Widodo has issued Government Regulation (PP) Number 18 of 2021 concerning Management Rights, Land Rights, Flat Units, and Land Registration. This Government Regulation has been officially enacted since February 2, 2021. This Government Regulation Number 18 of 2021 states that foreigners or foreign citizens can own a condominium unit (flat unit). A number of articles that regulate the ownership of condominiums or apartments by foreigners are included in Chapter V which regulates Flat Units.[3]

Article 67 which is included in the first part explains the subject of property rights to the apartment unit, this article has three paragraphs, the rules read:[4]
  1. Ownership rights to apartment units are given to Indonesian citizens (WNI); Indonesian legal entity;
  2. Foreigners who have permits in accordance with the provisions of laws and regulations; foreign legal entities that have representatives in Indonesia;
  3. Or representatives of foreign countries and international institutions that are or have representatives in Indonesia".

There are several important requirements for a foreign citizen to be able to buy an apartment in Indonesia, as for these conditions are as follows:[5]
  1. Have immigration documents in accordance with the provisions of the legislation;
  2. For apartments that can be owned, the property is built on usufructuary rights (hak pakai) or building use rights on state land, land with management rights, or property rights;
  3. The apartment is located in a special economic area, a free trade area and free port, an industrial area, and other economic areas;
  4. This government regulation also stipulates that foreigners who buy property in Indonesia have a minimum price limit, land area, number of plots, and allotment.
If we look at some of the conditions above, the most important thing here is that foreign nationals living in Indonesia are those who enter legally with official immigration documents. Apartments that can be purchased are also only those that stand on certain rights, such as use rights, building rights, management rights and property rights. The apartment in question is built in a special area, such as a special economic zone or free trade. Not only that, apartments that can be purchased also have their own rules such as minimum price, area of ​​land, number of fields and also their designation. This rule is further regulated in a Ministerial regulation. And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "Pengertian Warga Negara Asing di Indonesia", guruppkn.com., Diakses pada tanggal 6 Agustus 2022, https://guruppkn.com/pengertian-warga-negara-asing
2. Law number: 16 of 1985 concerning Flats.
3. "WNA Beli Properti di Indonesia? Boleh Saja Tapi Ada Syaratnya. Yuk, Cari Tahu", rumah123.com., Diakses pada tanggal 6 Agustus 2022, https://artikel.rumah123.com/wna-beli-properti-di-indonesia-boleh-saja-tapi-ada-syaratnya-yuk-cari-tahu-82623
4. Ibid.
5. Ibid.

Jumat, 05 Agustus 2022

Variety of Apartment Ownership Rights in Indonesia

(iStock)

By:
Mahmud Kusuma, S.H., M.H.
(Certified Attorneys at Law)

Previously, the www.hukumindo.com platform has talk about "Jenderal Hoegeng Dan Hoegeng Award", "Punishment For Foreign Nationals Whom Overstay In Indonesia", you may read also "Does Indonesia Implementing Citizenship By Investment?" and on this occasion we will discuss about 'Variety of Apartment Ownership Rights in Indonesia'.

The variety of vertical housing offered by developers in big cities is hard to resist. The various public facilities offered, the easy of payment methods, to the location that is easily accessible from the city center, become a tempting lure for those of you who are looking for a place to live.[1] Apart from being considered as the right solution to address the problem of limited residential land for an increasingly large population, apartments are usually built in strategic locations that make it easier for residents to access their place of work.[2]

What Is Apartment Ownership & It's Legal Basis?

An apartment certificate is a legal document that applies as a person's ownership rights to an apartment. An apartment certificate is a legally valid document as proof of ownership of an apartment unit. So, basically apartment unit owners are required to have a full and original apartment certificate document. Ownership of an apartment certificate can also help and strengthen a person's position in legal issues related to apartment unit ownership and other processes related to buying and selling apartment units. [3] In other words, an apartment certificate is proof of legal ownership of a part of a building so called apartment. 

Ownership rights to apartments are regulated by Law Number: 20 of 2011 concerning Flats. Article 46 paragraph (1) of the Flats Law stipulates that the right of ownership of the apartment unit is the right of ownership to the apartment unit which is individual and separate with joint rights to the shared part of the condominium unit, shared object, and joint land.[4]

Benefits of Apartment Ownership 

Following are some of the benefits of an apartment certificate:[5]
  • Become proof of legal ownership for the apartment owner;
  • Become a legal document that can be legally accounted for;
  • Become one of the main documents for buying and selling apartment units;
  • Be legal evidence that distinguishes apartment tenants and apartment owners;
  • It is a document that must be shown when renting an apartment to someone else, for reasons of security and agreement.
Of the various benefits as mentioned above, legally it is a proof of ownership. From these various proofs of ownership, then you as the owner can then benefit from it.

Variety of Apartment Ownership Rights in Indonesia

In it's role as legal proof of ownership, apartment certificates generally consist of four types as follows:[6]
  1. Certificate of Ownership of Flat Units (SHMSRS)/Hak Guna Bangunan, according to Article 1 point (11) of the Flats Law, the certificate of ownership of the condominium unit (SHMSRS) is proof of ownership of the condominium on land with property rights, building use rights, or use rights on state land, as well as building rights or use rights in on land with management rights. In another words, the certificate of ownership of the condominium unit (SHMSRS) is a right to use a building owned by an individual to one or more apartment units without ownership of land rights. The right to use the building in this condominium has the status of Hak Guna Bangunan, which means that the apartment is built on land owned by an individual or a certain property/developer company. In bureaucratic matters, the certificate of ownership of the condominium unit is generally the same as the certificate of ownership for the landed house. However, there is a difference on the cover of the SHM 'satuan rumah susun' which is pink, while for the regular SHM it is green. SHM Sarusun can also be pledged as loan collateral and is valid for 30 years.
  2. Building Ownership Certificate (SKBG), in contrast to SHM 'satuan rumah susun', if an apartment is built on land owned by the state/government or waqf land, then the ownership of the land is with a third party. This means that the certificate received by the apartment unit owner is only a building ownership certificate. The weakness of this type of apartment is that the building can be changed or converted when the land owner reclaims his land rights. So, one day the building could become an apartment, and within a certain period of time it could be rented out to other developers to build a hospital, for example.
  3. Land Management Rights (HPL) is Land Management Rights (Hak Pengelolaan Lahan) are rights that contain the authority of a person or company to plan the use of buildings. The use of buildings in this case includes the designation of land for business purposes. Generally, HPL is given by a third party to a developer or certain company that wants to build an apartment. For this reason, land management rights certificates are quite different from apartment certificates in general. Apart from having low power, land management rights are only limited to the word “manage” and not ownership.
  4. Strata title, in general, strata title is defined as the potential for vertical and horizontal joint ownership of an apartment building. In another sense, strata title is the right of joint ownership of public space in one building and exclusive right of private space. With this strata title, apartment unit owners can use public space in an apartment such as public facilities, sports facilities, and others with mutually applicable regulations. Conceptually, strata title are separate rights to land, buildings, water, and air in a location. Thus, this creates a stratification between which parts can be accessed privately and publicly and their rules.

And if you have any legal issue with this topic, contact us then, feel free in 24 hour, we will be happy to assist you. 


*) For further information please contact:
Mahmud Kusuma Advocate
Law Office
Tokopedia Care Tower, 17th Floor, Unit 2&5,
Outer West Ring Road, 101, Rawa Buaya,
Cengkareng Sub District, West Jakarta City,
Jakarta - Indonesia.
E-mail: mahmudkusuma6@gmail.com

________________
References:

1. "Prosedur Mengurus Sertifikat Apartemen di Indonesia", www.rumah.com., Diakses pada tanggal 5 Agustus 2022, https://www.rumah.com/panduan-properti/mau-beli-apartemen-begini-prosedur-memperoleh-sertifikat-hak-milik-atas-satuan-rumah-susun-7944
2. "Teliti Sebelum Membeli: Waspadai Alas Hak Apartemen Anda", www.kompasiana.com., Kreator: Septian Nugroho, diakses pada tanggal 5 Agustus 2022, https://www.kompasiana.com/septiannugroho/54f38280745513792b6c78eb/teliti-sebelum-membeli-waspadai-alas-hak-apartemen-anda
3. "Jenis sertifikat apartemen yang perlu diketahui beserta prosedur mengurusnya", www.ekrut.com., Penulis: Algonz D.B. Raharja, Diakses pada tanggal 5 Agustus 2022, https://www.ekrut.com/media/sertifikat-apartemen
4. Ibid.
5. Ibid.
6. Ibid.

Knowing Subpoena According to Indonesia Law

( Depositphotos ) By: Mahmud Kusuma, S.H., M.H. ( Certified Attorneys at Law ) Previously, the www.hukumindo.com platform has talk about &qu...