The Indonesian Civil Code (ICC), as the regulatory foundation for contracts, does not regulate pre-contract documents, such as letter of intent, memorandum of understanding, term sheet or other non-binding agreements, although these are customary to be entered into by the transacting parties prior to executing a binding contract. Before signing a contract as part of … Real Estate in Indonesia – Pre-Contract
Expropriation in Indonesia is usually enforced on the basis of land procurement for the public interest. Public interest is defined by Law No. 2 of 2012 Regarding Procurement of Land for Development in the Public Interest (14 January 2012) as the interest of the nation, state and society that shall be implemented by the government … Real Estate in Indonesia – Government Appropriation of Real Estate
SSEK partner Denny Rahmansyah has been named to the Asia Business Law Journal 2021 A-List of Indonesia’s Top 100 Lawyers. Denny was nominated for the A-List by Kim Kyu Baek, the acquisition and development manager of hotel operator Ovolo Group, for his assistance on a hotel transaction in Bali. “Denny and his team were great in … SSEK Partner Denny Rahmansyah on A-List of Leading Lawyers in Indonesia
The Indonesian government controls the development, construction and use of real estate by implementing spatial planning and zoning. Every regional government is required to plan the use of land, which requirement is implemented pursuant to Law No. 26 of 2007 Regarding Spatial Layout (26 April 2007). The spatial layout scheme consists of the national spatial … Real Estate in Indonesia – Planning and Land Use
The owner or tenant of real estate in Indonesia may face environmental liability arising from, for instance, pollution, contamination or failure to manage hazardous and toxic materials or waste. Indonesian environmental law recognizes strict liability in the event of damages resulting from a person’s actions, business or activity that uses hazardous and toxic materials (B3), … Real Estate in Indonesia – Legal Liability
There are various types of land title in Indonesia, and not all of them can be acquired by foreign entities and individuals, even if such foreign individuals reside in Indonesia or the foreign entities have a presence or do business in Indonesia. Below are the types of land title and the parties who are permitted … Real Estate in Indonesia – Foreign Owners and Tenants
In Indonesia, land is legally acquired upon the execution of a Sale Purchase Deed (AJB) by the seller and buyer, or a Land Relinquishment Deed (APH) in favor of the buyer. An AJB is used if the buyer wishes to acquire certificated title to the land of the same type as the seller\’s certificated title. … Real Estate in Indonesia – Registration and Recording
There is a system for land title registration in Indonesia, and upon registration the land title holder will be issued the relevant land certificate. However, large areas of land that have not been registered and certificated still exist in many rural areas. The rights to this land are still governed by adat (customary) law. They … Real Estate in Indonesia – Land Records
Restrictions on foreign investment in Indonesia are regulated by the Negative Investment List. There are lists of industries for which foreign investment is open (up to a certain percentage of its capitalisation), for example: A construction services business is open for up to 67% foreign investment (70% if the foreign investor is from an … Investing in Indonesia – Investment Restrictions
By Denny Rahmansyah For domestic investors, Indonesian law recognizes various corporate vehicles, including those with (i) non-legal entity status, such as a (a) maatschap (civil partnership), (b) firm and (c) comanditer venootschape (limited partnership, or CV); or (ii) legal entity status, such as a limited liability company (perseroan terbatas, or PT) or co-operative. Small to … Real Estate Investment Vehicles in Indonesia
