Buying a property in Bali is a dream for many, but they have to know the tricks.
Bali is one of the top chosen destination in Indonesia for tourism, a tropical paradise perfect for holiday rentals.
Nonetheless, if you are a German citizen interested in investing in the Indonesian housing market, you should be aware that foreigners are not allowed to own freehold property.
In Indonesia, instead, you have the chance to lease or own properties under other arrangements, such as right-to-build or right-to-use contracts.
The Indonesian local individual nominee is one form of purchasing a real estate. It means legally relying on an Indonesian citizen to buy it on your behalf, also called Hak Milik. However, it gives essentially no protection over their investment.
In fact, the issuing entity will still have the right to overtake the property at any given moment, drastically rising your investment’s risk.
Here are the alternatives.
The “Law 5” regulates property and real estate ownership in Indonesia, and allows you to get a Right to Build (Hak Guna Bangunan) or a Right to Use (Hak Pakai).
Germans and other foreigners can use these two formulas safely by referring to a foreign-owned company (PT PMA).
To get the right to build and the right to use, you can follow these steps:
Eventually, take into consideration these two things:
André Pitì
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