Diversity of Land Rights and Restrictions on Foreign Ownership of Proferty in Indonesia
| Main Author: | Sumanto, Listyowati |
|---|---|
| Format: | Proceeding PeerReviewed Book |
| Bahasa: | eng |
| Terbitan: |
, 2013
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| Subjects: | |
| Online Access: |
http://libprint.trisakti.ac.id/1/1/Listyowati%20Sumanto-Abst%20No%2076.pdf http://libprint.trisakti.ac.id/1/ http://law.nus.edu.sg/asli/index.aspx |
Daftar Isi:
- As part of the global economic activity growth, a great number of companies have expanded their business to include operations and offices in foreign countries. For the purpose of maintaining close supervision of the management of foreign business activities, many companies open a representative office in other countries. With the emergence of foreign investment and business in Indonesia, many foreign investors need land for buildings for their company. However, Indonesian Land Law is quite different to the laws that are applicable in most other countries. The Law Number 5 of 1960 and its numerous implementing regulations are the basic law applicable in Indonesia onrights over land ownership. The Basic Agrarian Law specifies several types of land rights, all of which offer the right to utilize the land concerned. Differences exist in duration of validity, nature of utilization, possibility to mortgage and proof in title. Only Indonesian citizens are allowed to own land in Indonesia with freehold title. Foreign ownership of property is an interesting issue. Foreigners who wish to use or purchase land for whatever purpose need to be aware of these facts and not assume that the legal conventions that apply in their countries would necessarily apply in Indonesia. There are restrictions on foreign ownership of property in Indonesia and that an amendment of Government Regulation Number 41 of 1996 extends foreign property ownership and eases restrictions. This measure improves competition in the Indonesian housing market, foreigners in Indonesia benefit by improved access to real estate and it is likely to attract more Foreign Direct Investment into Indonesia.