Lombok property land for sale in Lombok

FREEHOLD(SERTIFIKAT HAK MILIK): Enter into legal agreement with and indonesian nominee, either and individual or a company, whereby they hold the title to the property. Simultaneously enter into a power of attorney, handing over full rights from the indonesian nominee to the foreign party.

LEASE(SEWA): Make a leasehold aggrement investment in the foreigner's own name, usualy for 20-30 years, which is extendable. This method offer full legal protection to the foreigner during the term of the lease;however, once the lease term has expired the property reverts to the owner unless extended.

CORPORATE OWNERSHIP(KEPEMILIKAN PERUSAHAAN): Form a foreign investment company, which can be solely owned by a foreigner, and the title of the property will be in the company name. However, title in this case will last up to 30 years, as companies have to re-apply to indonesian government to extend their license for a further period.

SIMPLE WAY FOREIGNERS OWN PROPERTY IN INDONESIA

*.TITLE :There are a number of different type of title in indonesia: a.Hak Milik(Freehold)is the type of title that can only be held by an indonesian citizen. b.Hak Pakai(essentially leasehold title)and other form of title can be held by a PT. or PMA Company(Foreign Investment Company).

A NON-INDONESIA CITIZEN CANNOT OWN LAND IN INDONESIA: However a foreign can acquire a leasehold title to a building-almost the same as a strata title except that the title lasts only for 25 years with an extension of 30 years for a maximum of 55 years and reverts to the original owner.

BUYING LAND IN BALI AND LOMBOK ISLAND INDONESIA:By Indonesian law a foreigner cannot own land in indonesia. If a foreigner chooses, he/she can own land "indirectly". To do this you need to have an agreement between the foreigner and an indonesian, signed with the witness of a notary public. In the agreement the indonesian is the "legal owner" while acknowleging that the foreigner is the "rightfull owner" of the land and thus the indonesian owner would carry out any instructions from the foreigner regarding the land, including selling the land at certain price with the funds to be paid to the foreigner owner.

**.SOLUTION :There are 2 ways for foreigner to own the land in indonesia:

A.USING THE NOMINEE:The nominee will sign four document with the foreigner as follow :

a. A Loan agreement : acknowledges that the foreigner has lent to the nominee the purchase price of the land.

b. A right of use agreement : allows the foreigner to use the land.

c. A statement letter : where the nominee acknowledges the foreigner loan and intention to own the land.

d. Power of Attorney : nominee sign an irrevocable power of attorney giving the foreigner the complete authority sell, mortgage, lease or otherwise deal in the land.

e. And are availability personals name indonesia nominee for along period or forever period to be advice.

f. Our lawyers are availability.

B.USING THE PMA:The most significant change in indonesian investment law came in 1997 when the government introduced the PMA(Penanaman Modal Asing or Foreign Investment Company). This allows foreign investors to set up a company in indonesia, without having to have indonesian partners. The PMA can be 100 % owned by the foreign investor. PMA companies are allowed to own the title of property for a period 25 years and have to be renewed by the government.

C.TO SETUP A PMA, YOU WILL BE REQUIRED TO:

a. Submit the detailed business plan.

b. Operate in a business environment that adds value to indonesia in terms of foreign skills, employment and environmental benetif.

c. Make an appropriate cash deposit in an indonesia based Bank. The amount varies and is calculated from capital employed in the business.

d. Show the property investment as an asset of the company.

The takes approximately 3 or 4 months and once its completed;the company can apply for work permits for the foreign directors, 3 permits in the first year of operation. The cost to setting up the PMA is between IDR 30 to 40 million or equivalent with USD 4,500.