TAXES
LAW
12
Kudri & Djamaris, Attorneys – Counsellors at Law
O
n August 9, 2017, the Minister of Agrarian Affairs and Spatial
Planning (“Minister”) issued Regulation No. 13 of 2017 on
Procedure for Land Freeze and Land Seizure (“Regulation”)
with a perspicuous rule to ensure an orderly administration of land
that is related to land freeze, seizure or the recording disputes and
cases concerning land rights.
Under the Regulation, a land freeze is conducted on the request
of (i) individual or legal entity having legal connection to the
land; or (ii) law enforcer in relation to criminal investigation and
prosecution. Additionally, it may also be conducted by the head of
Land Office upon instruction of Minister, Head of Land Regional
Office or in urgency situation. No changes to the land title can be
made during the land freeze period, i.e. :
(i) 30 calendar days and its extension by a court order or
decision for the freeze initiated by individual or legal entity;
(ii) until the cessation of investigation or prosecution or the
removal of the freeze by the legal enforcer;
M
inister of Agrarian Affairs and Spatial Planning/Head of
National Land Agency of The Republic of Indonesia has
issued a further regulation on property ownership for
foreigners which has been set out in Minister Regulation No. 29
of 2016 concerning Procedures for Granting, Relinquishing or
Transferring Land Rights over Residential House to Foreigners
Domiciled in Indonesia (“MR 29/2016”). MR 29/2016 is the
implementing regulation to the Government Regulation No. 103
of 2015 on the Ownership of Residential House by Foreigners
Domiciled in Indonesia (“GR 103/2015”).
Under MR 29/2016, it is stipulated that a foreigner may own a
residential house with Right to Use (or as known as Hak Pakai)
in Indonesia. The term “foreigner” is defined in MR 29/2016 as
a non-Indonesian citizen domiciled in Indonesia with a valid
stay permit whose existence gives benefits to Indonesia, who
undertakes business, works or invests in Indonesia.
The types of houses that the foreigner may own are:
1. A house on the land under:
a. Right to Use
b. Right to Use which is derived from Right of Ownership
(iii) removal instruction from the Minister, Head of Regional Land
Office or Head of Land Office for the freeze conducted by the
Head of Land Office.
As for the land seizure, it is performed by the head of Land Office
to record any authorized seizures by investigator or judicial
body in a court case, investigation (criminal seizure) or tax (tax
seizure). During the period of land seizure, the land title cannot
be transferred and become the object of mortgage, but it can
still be extended, renewed or the subject of mortgage discharge
applications (roya).
The procedure for initiating the land freeze and seizure are similar,
i.e., by filing an application and the required documents to local
Land Office who will then undertake administrative examination.
The applicant thereafter has to pay assessment and record-
keeping fee and following the assessment of Land Office, the land
freeze or seizure will be granted and recorded by the head of the
Land Office and on measurement certificate.
Ria Lusiana Simamora, S.H., M.H.
Associate
+62 21 522 5453
Bunga Febriola Putri, S.H.
Associate
+62 21 522 5453
Real Estate
New Regulation on Procedures
for Land Freeze and Land
Seizure
(also known as Hak Milik) which is possessed by virtue of
an agreement that grants the Right to Use over Right of
Ownership in a deed made by Land Deed Officials; or
c. Right to Use which is derived from the conversion of Right
of Ownership or Right to Build (also known as Hak Guna
Bangunan/HGB).
2. An apartment built on the land:
a. Under a Right to Use; and
b. Which is derived from the conversion of Right of Ownership
on Apartment Unit.
The residential house that may be purchased and owned by
foreigner must be more than the minimum price limitation
determined inMR29/2016. Theminimumprice limitations isvaried
which is depending on the province where the house is located. In
Jakarta, the minimum prices for the house and apartment unit are
10 billion Rupiah and 3 billion Rupiah respectively.
Further Regulation on Property Ownership for Foreigners
Real Estate
8
th
Edition | December 2017
