"Avoiding buying a road 2 disaster" Top 5 Page for this destination Bali Shopping Tip by balisunshine

Bali Shopping: 43 reviews and 59 photos

  Avoid the road to disaster
by balisunshine

Freehold Title on land
(hak milik) in Indonesia is
a right extended only to Indonesian citizens.

For foreigners contemplating
the purchase of freehold title,
the only option is to
use an Indonesian nominee.

With roper legal advice,
foreigners ca secure there
interests with a series of documents
and by taking a mortgage on the land,
which has the effect of placing
their name on the title.
This precludes any dealing
in the title without the foreigners?
consent to remove the mortgage.

What to buy: If marries to an Indonesia woman,
a foreigner should take care
about appointing her as the
nominee in land purchase.
Under Indonesian law,
unless the woman has a
prenuptial agreement with her husband,
all land acquired during the marriage
is subject to forfeiture to the government.

What to pay: Leases: For a foreigner uncomfortable
with the nominee arrangement,
land may be leased.

The maximum period of
a notarized lease is 25 years,
though it is the practice in Bali
to have 2 leases of 25 years each,
executed on consecutive days with a
25 year option on a second lease,
effectively yielding a 75 year lease.

Theme: Other

Was this review helpful?

  • Written Nov 1, 2005
  • Send to a Friend
  • Add to your Trip Planner
  • Report Abuse


balisunshine Lives Here!


“It's all good!!”

Online Now


Top 1,000 Travel Writer
Member Rank:
0 0 4 3 9

Have you been to Bali?

  Share Your Travels