Hi gentlemen and ladies, Can anyone inform me of the current situation faced by foreigners who wish to buy jakarta real estate, in particular apartments? I have heard that SBY has or intends to relax the laws to make it easier for foreigners to directly own apartments in jakarta to encourage foreign investment. And oh ya Selamat Hir Idul Fitri dan mohon maa lahir dan batin. Thanks, KucingGarong

the situation is completely unchanged, and will remain that way.

the hype you may have read in the media makes an appearance every year or so, when local developers are trying to ramp up prices.

Thanks for the reply. However, by "unchanged" I'm not sure what you mean as I do not really understand the status quo, Hak milik, hak guna etc. Not to say I haven't read some of the info available on the net, but often there is a lack of consensus between posts. As I understand it foreigners have Hak guna through 20 year renewable leases on "rumah susan" or apartments. Also in theory can't foreigners hold a title to any real estate including land through a company structure? I would be grateful if someone among you jaded expats could take the time to explain the pitfalls of buying real estate in Jakarta to a less than savy bule.

the first thing any foreigner who wishes to own land/house/apartment in indonesia is needs to understand is that they do not have legal standing here.

this means that no matter what changes to the land law are made -- and trust me, no substantive changes are planned or likely in the next 5-10 years -- foreigners are hobbled by their lack of ability to enforce their property rights in indonesian courts. why? no legal standing.

on the other hand, indonesian companies, as legal entities, do have legal standing. thus, the safest most efficient way for a foreigner to own property in indonesia is through use of a 100% owned and controlled PMA company.

...and that's where you come in Mr.Ku isn't it? You can also own property through a 100% owned and controlled wife.........hmmmmm.....on second thoughts...

"i thought i could trust her!" -- famous last words. god how i hate it when clients utter those words.

or husband...and that's where fits in to this whole sordid picture

.

Ah, yea of little faith, some wives, 1 in particular, I know, sometimes cannot be controlled 100% but love conquers all. Maybe you guys are just not packing the right stuff to have her eating out of your hand?

I yearn for a soul mate Vipe don't rub it in. Someone to share the existential joy and pain with. Either that or a bird with huge and no gag reflex.

Thanks again for the info Mas Kukukacu- I take it that your business offers a service for those wanting to form a PMA. Aside from the set up costs are there annual costs associated with running such a company?

Thanks KG

Kuku-kacau

Kuku-kencing

yes, but there are plenty of other firms who can set up a company for you. mine just happens to be by far and away the best.

my only advice here is that a PMA company is the one and only way a foreigner can secure their assets in Indonesia.

how you get your PMA is up to you. (no, i actually don't need your business.)


the most important cost is for tax compliance. cost of this depends on what you are doing with the company. if you are running it 'dormant', with absolutely no transactions, then you could get an accountant to do it for as little as USD30 per month.

if the company is active, on the other hand, then greater attention is required. you may choose to employ your own full-time accountant (cost, Rp2.000.000 per month), or engage a firm to do it (cost: Rp 10.000.000 - Rp 30.000.000 per year).

wow so romantic..

Haven't heard anything romantic from Jakchater for sooooo loooong....

you know what they say, "fools in love" ...

better be a fool than not having 'the' love!

THanks again for the info Mas Kukukacu, you certainly seem well versed in indo business law. If and when I take the plunge to buy I will could certainly use your services. Do you have access to indo pengacara hukum? Is a lawyer needed for establishing PMA