June 12th, 2019
Based on Minister of Agrarian and Spatial Planning / Head of the National Land Agency of the Republic of Indonesia Number 29 of 2016 pertaining Procedures for Granting, Disposal,
or Transfer of Right to Residential Ownership by Foreigners Domiciled in Indonesia, it is stated that foreign citizens in Indonesia whose hold a residence permit have a right to own a house in Indonesia for residence or occupancy with the house usage rights. Subsequently, in a case of the foreign citizens whose own the right of house usage dies, then the house of residence or occupancy can be inherited to those who are entitled with the terms the heir (foreign citizens) should hold the residence permit in Indonesia.
Housing or occupancy which could be owned by the foreign citizens, can be:
a. Housing, above ground:
1. The house usage rights;
2. The house usage rights of ownership rights whose managed based on the right of house usage distribution of ownership rights with the deed of the land; or
3. The house usage rights which conversion from ownership rights or building rights.
b. Flats/Apartments which:
1. Built on the land of the usage rights; or
2. Originated from conversion of ownership rights of the flats.
In a terms of the rights of house usage whose owned by the foreign citizens would be transferred to the Indonesian Citizens, subsequently the rights of house usage could be converted as the ownership rights or building rights with the remaining length of time of the rights of house usage stated above. The dwelling house which owned by the foreign citizens above the ownership rights or building rights originated from buying and selling, grants, exchanges, auctions, and/or any other things to converted the rights of the land, then the ownership rights or building rights stated above become state’s land which immediately given to the entitled party with the conversion into the rights of house usage. Regarding to those legal actions, the official of the deed land should authorized a rights conversion deed and the auction official should authorized a deed of auction, for the ownership rights or the building rights for the residence.
The dwelling house above the house usage rights whose owned by the foreign citizens originated from the ownership rights have got the time period for:
a. 30 (thirty) years;
b. could be extended for another 20 (twenty) years; and
c. in terms of the term of the extension has expired, the rights could be renewed for another 30 (thirty) years.
The dwelling house above the house usage rights whose owned by the foreign citizens originated from the building rights have got the time period for:
a. the remaining period of the building rights validations;
b. could be extended for another 20 (twenty) years; and
c. in terms of the term of the extension has expired, the rights could be renewed for another 30 (thirty) years.
Application for conversion of the ownership rights to the house usage rights registration should be given by the principal or their authorized party to the Head of the Local Land Office, by attaching:
a. blank application which has been filled in completely and signed by the applicant or their authorized party, which applies as a statement of releasing the rights of the land;
b. the deed of house usage rights or building rights with the conversion request;
c. minute of the auction which authorized by the auction official, in terms of the rights were acquired by foreign citizens in a public auction;
d. a letter of approval from the owner of mortgage rights, if the building rights or the ownership rights were burdened by mortgage rights;
e. validation payment proof for acquiring land and building rights; and
f. the applicant identity.
Based on the Regulation of the Minister of Law and Human Rights of the Republic of Indonesia Number 23 Year 2016 pertaining Foreigners or Heirs Whose Owned the Residential Houses Which No Longer Domiciled in Indonesia, it is stated that foreigners who have residential houses with house usage rights in Indonesia but have left the Territory of Indonesia within a period of 1 (one) year obliged to release or transfer the rights to the house and land to another party. The period calculated since the date of the exit permit which proven by reference letter from the Minister of Law and Human Rights or Director General of Immigration of the Republic of Indonesia.