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PT. Bali Property Indah

 

25 April 2018

As reported by NusaBali, the Regency of Buleleng has stated its readiness to make land available land for the planned construction of a north-south highway in the villages if Wanagiri and Gitgit.

bali toll road
The land needed for the Bali toll highway construction covers an area of 11-hectares that is currently owned by 32 families. The head of public works for the Regency of Buleleng, Ketut Suprata Wijaya, told the press on Monday, April 16, 2018, that the acquisition of the land for the road project will take place in 2018, but will only be undertaken by the Regency after the a change in the routing of the north-south road is confirmed by the National Road Planning Agency (BBPJN).

Original plans for the new bali toll highway “shortcut” were in a location on the western side of the present road connecting Singaraja and Bedugul. New plans for the road, however, relocate the new road to the east side of the Singaraja to Bedugul road. The new route is considered less challenging on an engineering level than the original plan.

While the proposed Bali toll road “shortcut” at 1.8 kilometers in length is slightly longer than the existing road of 1.5 kilometers, the new road will offer a faster road that is less winding and safer for vehicular traffic. The new route’s land requirement of 11 – hectares is almost twice the 6.6-hectares required for the original plan.

 

 

5 April 2018

North Bali Airport – -In An Apparent Reversal, Jakarta Announces North Bali Airport Will Go Ahead, But Only After North-South Toll Road Built

NusaBali reports an apparent change in direction by National leaders in Jakarta who are now signaling that a planned new international airport in North Bali may still go ahead, despite a report that plans for an airport at Kubutambahan had been scuttled.

The Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan, has announced that Bali’s new airport of the north will be built. Pandjatan says the ground breaking for the new airport will take place “if” and “when” the North-South Bali Tollway is constructed. Meanwhile, lawmakers from the Bali House of Representatives (DPRD-Bali) are calling on the Ministry of Transportation to quickly declare the location for the Buleleng Airport.

Speaking in Jakarta on Friday, March 30, 2018, Minister Pandjaitan issues a written statement saying: “The construction will take place, and a road connecting North Bali and South Bali will also be built. If the road construction is done, then the cornerstone for the North Bali Airport can be put in place. What remains to be done is to set the schedules, because the investment amount is very large.”

north bali airport

Luhut said the construction of the north-south road and airport can balance development between the northern and southern parts of Bali, contributing to the welfare of people living in the northern, western and eastern regions of the Island. “We are calling for a study (on the Toll Road) to be quickly completed. Roads infrastructure on the left and right side of Bali will go ahead while at the same time preserving environmental balance,” said Luhut.

The Coordinating Minister also said that the expansion of Bali’s Ngurah Rai Airport remains a pressing requirement to handle the rapid growth in passenger arrivals and delegates and VIP aircraft attending international conferences in Bali. Adding: “Earlier, it was decided to continue with the development of Ngurah Rai Airport. The recommendation from the Governor was issued on Thursday, March 29, 2018. During his latest visit to Bali, Minister Pandjaitan made inspection visits to Bali’s Airport and the Garuda Wisnu Kencana (GWK) Monument.

North Bali Airport – Luhut told the press that the construction of the exterior elements of the GWK have reached 60% with the “topping off” to take place on May 20, 2018, in conjunction with a religious blessing for the monument. Developers hope the President will attend a formal inauguration of theGWK on August 28, 2018.

 

6 March 2018

Offshore airport in northern Bali not urgent: Minister

The central government will not prioritize the development of an offshore airport in northern Bali as proposed by the local government, saying that such a project was not urgent, according to Transportation Minister Budi Karya Sumadi.

He stressed, however, that the central government was prepared to develop a second runway at I Gusti Ngurah Rai International Airport in the southern part of the resort island.

north bali airport

“We prefer to empower the existing I Gusti Ngurah Rai International Airport,” Budi said in Jakarta on Sunday as reported kompas.com.

Previously, he said that the ministry was carrying out a study on the proposal made by the Bali administration through PT Pandara International Bali Utara (BIBU) Panji Sakti, which has received support from a Canadian investor.

BIBU president director I Made Mangku said the company preferred to develop an offshore airport because the initial plan of an onshore airport would have sacrificed 33 Hindu temples, 121 historical sites, roads, residences and productive rice fields.

Made further explained that Bali Governor Mangku Pastika had prohibited the use of productive land, Hindu temples or historical sites for the development of a new airport.

 

20 February 2018

North Bali Airport – Banyuwangi as a New Gateway to North Bali

Banyuwangi’s Airport is on course to become Bali’s de facto second airport as it prepares to become an international airport in 2019.
Indonesia’s Tourism Minister Arief Yahya visited the Blimbingsari Airport in Banyuwangi on Thursday, February 15, 2018, during which he praised the East Java destination as having fulfilled the three main criteria to become a world tourism destination, namely: world class attractions; a complete range of supporting amenities; and increasing ease of access.

North Bali Airport
North Bali Airport. As reported by Kompas.com, the Minister of Tourism said that it was likely that Banyuwangi would soon operate direct international flights with Singapore, Malaysia, and Australia.
Yahya also said that Banyuwangi’s role as a landing port and parking area for VIP jets during the October 2018 International Monetary Fund and World Bank meeting in Bali will represent a moment of “great momentum” to introduce Banyuwangi tourism to the world.
North Bali Airport. Banyuwangi welcomed 497,000 tourists in 2010, rising dramatically to 4.01 million tourists in 2016. International tourist numbers increased from only 5,205 in 2010 to 91,000 in 2017 –  bringing Rp. 546 billion in foreign exchange to the national tourism economy.
North Bali Airport. M. Awaluddin, the CEO of PT Angkasa Pura II, who manage the Banyuwangi Airport, revealed that discussions and feasibility studies are being carried out in cooperation with the Australian airline Jetstar on possible flight service to Banyuwangi.
Angkasa Pura says Rp. 400 billion is needed to make Banyuwangi an international airport by widening and lengthening the current runway to accommodate larger jets.
Banyuwangi in East Java is only a short ferry ride from the Balinese Port of Gilimanuk and has the potential of improving accessibility by air to West and North Bali and function as a North Bali Airport

 

29 January 2018

In Opposition to Dirty Power

Citizens and Environmental Courts Challenge Construction of Coal Burning Power Plant in North Bali

Representatives of people living near Celukan Bawang in North Bali, accompanied by Greenpeace Indonesia, and a team of lawyers from the Indonesian Legal Aide Foundation (YLBHI-LBH) have formally filed a petition on Wednesday, January 24, 2108, with the Denpasar Administrative Court (PTUN) challenging a decree issued by Bali’s Governor (SK No. 660.3/3985/IV- A/DISPMPT) that granted permission for the construction of the coal-burning steam generated Electrical Generation Plant (PLTU) Batubara Celukan Bawang.

Quoted by Metrobali.com, one of the plaintiffs in the case, I Ketut Mangku Wijana, said: “We are advancing the legal challenge on the basis of several basic rationales. One deals with the fact that the Governor of Bali’s decree was published without any involvement or hearing before the people who would be most affected by the project.

The YLBHI-LBH also contends that the environmental impact statement(AMDAL) used in granting approval for the plant was both invalid and unrepresentative. Dewa Putu Adnyana of YLBHI-LBH said, “In publishing the environmental impact statement (AMDAL) that forms the basis of the Governor’s decree is legally flawed because it is not in accordance with Rule Number 27 on granting environmental permits.” Adnyana explained that the legal requirements to involve the public in the AMDAL review process were ignored in the Governor’s decree. As a result, the AMDALused in approving the project was incomplete and failed to adopt a holistic evaluation in examining the impact of the project.

north bali coal power plantFrom Greenpeace, Didit Haryo, said: “The Governor’s decree is not based on shore side zoning principle for small islands.” Adding, the mission ofGreenpeace is to affirm the planets role as a place that is safe and a viable place for all living beings.

Didit said the Celukan Bawang coal burning power plant represents a major threat to the continuing survival of the human race. The Greenpeaceofficial says current predictions are that existing PLTU plants in operation will cause the deaths of around 6,5000 people in Indonesia. Because of this, Greenpeace is opposed to the establishment of any new PLTU power generation plants in Indonesia using coal.

The plaintiffs also argue that the development of PLTU Batubara Celukan Bawang with a capacity of 2 x 220 Megawatts is not in accordance theNational Plan for Power Supply (RUPTL) or even the regional power plan. The RUPTL declared Bali would meet its new power needs via new energy sources, avoiding traditional and “dirty” coal-burning power production. The legal plaintiffs are also arguing that the PLTU Batubara Celukan Bawang plant is unneeded with adequate alternate power sources for Bali still available in sufficient quantities.

 

19 December 2017

Bali Accommodation Villa – Tax Relief

Bali Accommodation Owners Seek Tax Relief and Delay in Minimum Wage Hikes Until Mount Agung Volcanic Activity Subsides

Accommodation operators in the Regency of Badung in Bali are calling on the government for a reduction in the Hotel and Restaurant Tax (PHR) during the current downturn in business cause by the volcanic activity of Mount Agung.

Bali Accommodation Villa
As reported by Balipost.com, the request for a PHR tax break is prompted by the historically low occupancy rates following the eruption of the Mount Agung volcano. In addition to asking for tax relief, the accommodation providers have also requested that any plans to increase the minimum wage levels in the Badung Regency be postponed until the current crisis resolves.
Among those calling for a tax reprieve was the secretary of the Bali Villa Association, Yoga Iswara, who said on Thursday, December 14, 2017, “Because the situation of tourism is in the current state, businesses need lower taxes from the government.

bali accommodation villa

Bali Accommodation Villa
Iswara defended the request for a tax cut claiming hotels were often giving free service to people stranded during the airport closure. He also joined the chorus of accommodation owners imploring that the government delay any increase in the minimum wage level for the Regency of Badung for 2018. Later, Ramia Adnyana of the Indonesian Hotel General Manager Association (IHGMA) echoed the call for a reduced tax burden until the business climate returns to normal. Adnyana said, reduce the tax from 10% to 7% or something, anything will help.”

Bali Accommodation Villa
The chairman of the Indonesian Hotel and Restaurant Association in Bali (PHRI-Bali), IGN Rai Surya Wijaya said that hotel occupancies continue to plummet due to the continuing volcanic activity on Mount Agung. Wijaya said that Bali is approaching high season with occupancies running at only around 20%. He said his organisations’ members were now doing all in their power to return occupancy to normal levels.
On a governmental level, negotiations are underway with airlines flying to Bali and foreign governments are being asked that travel alerts for Bali adopt a more moderate tone. At the same time, the provincial government of Bali has put in plans to reduce inconvenience to travellers should they be momentarily stranded due to airport closer. Bali Accommodation Villa

 

20 July 2017

Amazing Indonesian Style Gardens that Will Help Sell Your Home

There’s nothing like a unique decorative feature to help sell a home, and an Indonesian style garden is the perfect way to dress up your home and make it stand out to interested buyers. Work with companies like ContractorsToday  to help get together all the professionals to make some of the below features possible, and you’ll have a beautiful garden that stands out above the rest.

Straw Top Gazebo

Give your garden an enchanting look with a beautiful straw top gazebo supported by four large black bamboo columns. You’ll enjoy a unique look, functional shade and a beautiful centerpiece for your garden. The gazebo goes remarkably well alongside a pool, and is accented nicely by stepping stones, or dark pavers.

Black Bamboo Border

Border features in your garden using black bamboo as a beautiful divider. It grows quickly and easily in most climates and creates a stylish border that can help separate features or offer a bit of privacy to a pool or sunbathing area.

Indonesian-Style-Gardens

Post Lanterns

Line your garden pathways with Balinese style post lanterns that take LED lights for convenience and an authentic look that provides beneficial light to your garden. You can even use the lanterns to hang baskets of flowers and other plants along your walkway.

Crushed Rock and Paver Pathway

Another signature look that Indonesian gardens are known for is a crushed rock pathway that’s dotted with pavers floating in a sea of crushed of rock. It’s stylish and creates a nice wide walking path with a cool border. Hold the rocks in using additional pavers on the outside for additional style points, or go with wood borders for simplicity.

Decorate with Indonesian Statues

Place a couple large or small Indonesian statues around your garden to give it an exotic theme and to help set the mood for the rest of your landscaping.

Indonesian-Style-Gardens

A Lush Plantscape

Fill your garden with lush plants that infuse color and lots of greenery into the space. This is the signature look of an Indonesian garden and will give your home a more authentic look. Just prepare for plenty of trimming to keep everything looking nice and neat.

Massive Potted Plants

Add special features around your garden with huge pots filled with large exotic plants. The large pots will serve as décor on their own, and the plants will be easier to maintain in the containers as well.

Eucalyptus Trees

The Rainbow Gum Eucalyptus tree is a beautiful example of Indonesian greenery that can infuse that tropical appearance into your home garden. Fortunately for those that live in the south, the tree will grow readily when planted properly. Add a few of these into your landscape and you’ll have an exotic look to show off.

Indonesian-Style-Gardens

Light up the Night

Create a truly breathtaking garden environment with a set of crystal string lights shimmering through the tree tops or set up along fencing, buildings and the taller sections of your garden. Create a shimmering environment that will be enjoyable to relax in at night, and accent the string lights with table lights and lanterns for a truly breathtaking look.

It takes time and real planning to achieve a lush Balinese garden, but with a bit of hard work and the right professional help, you’ll have a finished product that you can be proud of. Get in touch with a contractor today and work out the details of your new garden.

13 July 2017

Plans for Bali North-South Toll Road Shift from Seaside Route to Inland Foothills

Bali Deputy Governor was quoted by the State News Agency Antara as saying plans to build a number of roads to Bali’s North have been altered from originally following a coastal route to new plans that will traverse Bali’s mountainous core.

In meetings with local tourism officials, Sudikerta said the change in plans to move proposed toll roads to inland routes was the result of feasibility studies that deemed coastal routes as non-viable for reasons of costs.

“While the original plans were to build new toll roads on the beachside, the cost of land acquisition for coastal routes proved too expensive forcing the decision to pick the cheaper inland routes for road construction,” explained the Deputy Governor.

As a result, new plans will see the planned north-south route pass a number of foothills in the area of Gilimanuk in the regency of Karangasem. The new road route will travel from Pekutatan-Seririt, Bangli-Kubutambahan, Baturi-Gatsu Denpasar.

bali-toll-road

Sudikerta explained that the foothills of Bali’s mountains are occupied by State-owned land making right-of-way acquisition less problematic.

Earlier, the Provincial Government planned to construct four toll ways covering a total length of 156.7 kilometers. Those plans traveled on routes over four sectors: Kuta-Canggu-Tanah Lot-Soka measuring 28 kilometers, Soka-Pekutatan (25,1 kilometers), Pekutatan-Gilimanuk (54,4 kilometers), and Pekutatan-Lovina (46,7 kilometers).

After an initial feasibility study was conducted it was determined that cost of land acquisition would be very high. For instance, if the toll road transverses the Badung Regency the cost of one are (100 square meters) is Rp. 3 billion.

 

1 July 2017

North Bali Airport – A Ceremonial Start at least!!

Despite lacking a location permit for the North Bali Airport there will be still conduct a “Nuasem Karya Cermony” on August 28, 2017.

Plans are now in place to conduct a “Nuasen Karya” ceremony in the Buleleng regency designated for the construction of the Bandara Internasional Bali Utara (BIBU) or the Buleleng Airport.
A “Nuasen Karya” ceremony is traditionally conducted to seek God’s blessing on a new project or enterprise.
Beritabali reports that the President Director of BIBU said the ceremony will take at Dusan Yeh Buah in the village of Kubutambahan.

north-bali-airport
August 28 was selected after seeking as auspicious date on the Balinese religious calendar. The ceremony is being held despite the fact that the mandatory “location recommendation” issued by the Central Government in Jakarta is still not approved and issued.
The undertaking of the ceremony is declared as necessary to persuade investors in the airport project.

The BIBU says that they are optimistic that the location recommendation will soon be issued by Jakarta!After the ceremony BIBU will convene a meeting with 500 investors at Nusa Dua to present plans for the airport which should be built by Airport Kinesis Canada.
Shortly thereafter plans are to lay a cornerstone for the airport!

25 June 2017

Bali Rail System

The Jakarta Post and State News Agency Antara reports that Chinese investors have been invited to build a local rail system connecting Denpasar – Ubud – Singaraja. The announcement was made by Maritime Affairs Minister Luhut Pandjaitan on Thursday, June 15, 2017.

bali rail system

A detailed feasibility study is being conducted by Bali’s Udayana Universityin cooperation with the World Bank for a project targeted to commence construction in 2018.

 

1 June 2017

Bali Tourism Economy

Bank Indonesia frets about inequitable economic growth between Bali’s North and South and lack of provincial master plan.

The State News Agency Antara reports that Bank Indonesia is reminding that future tourism development in Bali must be spread across all areas of the island to avoid over-concentration of economic development the south.

bali-economy-tourism

Bank Indonesia division chief for advice and economic development said: “Tourism development in Bali is still concentrated in the southern part of the island. This has resulted in heavy traffic congestion, trash accumulation and oversupply of rooms and other carrying capacity limitations.”

In addition to problems of geographical inequity in tourism development in Bali, the Indonesian Central Bank also raised concerns over the lack of a holistic and integrated approach to tourism development for the island.

There is a lack of meaningful synergetic coordination between the tourism industry and the government. Another challenge, according to Bank Indonesia, is the declining lack in quality of foreign visitors to Bali as measured in terms of average spend per day and the average length of stay. The Bank also lamented the diversion of land from traditional usage to tourism and other purposes.

In illustrating the declining quality of tourism visitors, they pointed the current length of stay of only 2,93 days (2016) as compared to 3.08 days in 2015. Also of concern is the declining level of spending by foreign tourists to current levels of US$ 143,45 per day (2016) while in 2015 the level of spending stood at 143,92 US$

Total foreign tourist arrivals to Bali in 2016 hit 4,9 Million in 2016, up from 4 Million in 2015. Tourism arrivals for Q1 in 2013 have increased year on year 22% to 1,3 Million tourists.
Bank Indonesia projects an economic growth rate of between 6.1 – 6.5% for the island of Bali in 2017 pushed primarily by domestic consumption, exports, services and investment. The main business sectors in Bali remain accommodation, food and beverage, agriculture and transportation.

28 April 2017

Making the Move to a Beautiful Home in Indonesia

making the move to a beautiful home in bali indonesia

Have you been mulling over a possible move to Indonesia? If so, you may be interested in knowing that there are plenty of homes ranging from simple family homes or homes for single people to luxury homes that have many upscale amenities to enjoy. Whether you plan to rent or buy, there is a home waiting for you in this beautiful country in Asia.

Let’s get something out of the way before we begin. Language is important in Indonesia and if you don’t speak the language already, you need to learn to speak it before you move. Most people you meet on the streets will speak Bahasa Indonesian and they will speak with dialects depending on which part of the country you are in. In the business sector, you will most likely hear proper Indonesian but on the streets, be prepared to hear some Indonesian slang. You will of course hear English from the expats living locally, but it’s easy to get lost without knowing how to understand the official language of the country.

Expats have long been venturing to Indonesia to live as tourists or to start a new life completely as well as to be able to live out the retirement years. If this is something you believe you may want to do, you should take a little time to discover all that a move to Indonesia involves and what the country can offer you once you arrive.

Fun Things to Do

Everyone enjoys a little adventure in their life, and if you are getting ready to hop on a plane and begin life anew in Indonesia, you most likely have an adventurous side to you. Fun things to do can range from docile activities like visiting a local temple or watching the sunset after a scrumptious dinner to flying down a waterslide at a local water park or heading off for diving lessons in the ocean. You can also take a long hike to splash in a waterfall, tour a monkey sanctuary or even hop on a board

and hit the waves surfing all day. In Indonesia, you will never find a dull moment and you’ll be amazed at the many things offered for fun in this country.

Finding a Home

Homes throughout Indonesia are plentiful, and many are quite luxurious. Depending on whether you are seeking a home for one or maybe even a large family home, you’ll find that no matter the area, there will most likely be a few amenities you won’t want to miss out on. These may include a swimming pool or even a doorway that leads directly to an isolated beach where you will have plenty of privacy as you sunbathe or swim.

With the help of a local real estate professional you can find the best homes to rent, or if you prefer to find a home to buy, you will find many new homes on the current market. It is also possible to design and build a home depending on the property you purchase. Only an agent that specializes in homes throughout Indonesia will be able to point you in the right direction for the property you’re searching for. Once you locate the home you want to live in, you may need to consider bringing your personal property over as well.

Bringing Family Pets

No pet lover wants to leave a beloved pet behind during a move, even when the move is overseas. Once you’ve found the ideal home, obtain your visa and are ready to make the move, be sure to take a little time to ensure that your pets can go with you. Pets are allowed into Indonesia, but they must have the following documents for entrance:

  • Owners Passport
  • Health Certificate – Must be filled out within 5 days before arrival
  • Rabies Vaccination Certificate – Cannot be older than a year
  • Import Permit – Issued from the Indonesian Department of Agriculture

 Moving Household Items

Hiring a company, as well as a shipping agent for the household goods you’re bringing can offer a great deal of help during an overseas move. The items you bring must be cleared through customs, since heavy fines are likely if the shipment should be exported back. All boxes must be clearly labeled with the owner’s full name and you may need the following documents:

  • Passport and Visa Pages
  • Residence and/or work Permit
  • Pack List – Original and 1 Copy Faxes Prior to Arrival
  • Bill of Lading – Original, Faxed Copy and Prepaid Copy
  • Authorization Letter

There are prohibited items that are not allowed to be transported into the country. Some of the items include, but are not limited to:

  • Controlled Substances
  • Cordless Phones
  • Pornographic Materials
  • Weapons of Any Kind
  • Animal Skins 

Bringing Along Your Luxury Vehicle

Specific guidelines are set in place for vehicles entering Indonesia. Currently, used vehicle shipments are limited to diplomats in Indonesia. New cars may be imported but they will cost a 300% duty from the government to process the import. A company like A-1 Auto Transport, Inc. will be able to assist with moving a vehicle to Indonesia. You must provide a few important documents to customs when importing a vehicle and these include the following:

  • Original Title & Registration
  • Copy of Passport
  • Bill of Lading
  • Work Permit
  • PP-8 form (diplomat form)
  • Packing List 

It is recommended that you speak with the Embassy further to find out additional documents, visas or other relocating guidelines required for your move. Taking time to properly discuss the move with an experienced shipper can be a great way to ensure that your move to Indonesia goes smoothly so you can begin your new life abroad in a stress-free way that allows you to fully enjoy your new surroundings without worry.

 

8 April 2017

Bird View Images and Bird View Videos from your property…

… for a better success and feedback in marketing, sales and renting your real estate property on Bali island. From 1st June 2017 on we offer “Bird View” images and videos from your residential and commercial property for your sales and rental listings. With a advanced drone DJI Phantom 4Pro Plus!

bali property bird view video & images

 

 

 

 

 

 

 

 

This new state of the art intelligent camera drone with a 3 axis u-frame camera stabilization cancels out unwanted camera movements during flight with a camera that sees with a 720 p HD from up to 5km with the Phantom’s 4 integrated HD video downlink. The camera is capable of capturing 4K video at 30 frames per second and slow motion 1080p at 120 frames per second creating impressive footage. Video and image editing will be included in the for each property specialized package price depending on the size and location of the property.

Follow this Link to see a sample video footage of a Bali property!!

Please contact us for a tailor made offer to create a very special footage of your real estate property on Bali island!!

 

 

14 March 2017

New Regulations on Prenuptial Agreements & Changes in Property Ownership Rules

Bali Update Interview with Notary Rainy Hendriany SH, Sanur, Jl. Danau Buyan NO. 52, Phone: 7800532 or 7800541 regarding New Regulations on Prenuptial Agreements & Changes in Property Ownership Rules!

With the general consensus that property sales, particularly those involving foreign purchasers, have declined significantly in Bali, Balidiscovery.com thought it was time to catch up with the invariably well-informed Sanur-based Notary to find out what, if anything, has changed in regulations affecting foreign land ownership in Indonesia.

A good deal of confusion within the international community surrounds the use of “Prenuptial Agreements” to secure property purchase rights when marrying an Indonesian. There is a perception that the regulations have changed and that a Prenuptial Agreement” is no longer necessary to protect future rights to buy land.  There also looming uncertainty about the long-awaited changes in regulations regarding the liberalization and opening up of property ownership in Indonesia to foreign buyers.

 

bali property purchase notary

Bali Update Interview with Rainy Hendriany

Bali Update: Ibu Rainy, thank you once again for generously giving your time to explain to the international community in Indonesia the latest Indonesian Laws and Regulations on matters affecting foreign land ownership. I know from reader feedback that your inputs are always appreciated.

Rainy Hendriany: I’m always happy to contribute but I’d like to say first that my comments in such an interview have to be general in nature and are not intended to be, or to replace the need for, professional legal counsel.

Bali Update: Let’s talk about Prenuptial Agreements. There seems to be a widespread belief that because of certain changes in regulations, Prenuptial Agreements, let’s call them Prenups, are no longer necessary to secure property purchase rights when marrying an Indonesian citizen. Would you please help to clarify what is the situation?

Rainy Hendriany: I’m not surprised by what you say because many clients asking whether a Prenuptial Agreement is still necessary have also contacted me. So the confusion does seem to be quite widespread.

There have been some important changes to regulations, which I will get to in a minute, but first, let’s back up and review why Prenups have been important for a foreigner marrying an Indonesian.

First, the main reason that Prenups have been used by mixed couples is that Indonesian Law, including provisions of both The Indonesian Constitution and The Basic Agrarian law of 1960, make it illegal for non-Indonesians to own landed property in Indonesia, which includes both Hal Milik (Ed: Freehold with unlimited duration) and HGB (Ed: The Right to build and use with long but limited duration).

Second, under Indonesian law, like in most countries, assets acquired within a legal marriage become the joint property of the partners in the marriage.

So that means that if the Indonesian partner in a marriage to a non-Indonesian was to acquire such landed property in his or her name, the foreign partner would own half of it, which is illegal. In turn, that explains why Prenups have been used by mixed couples because with a Prenup, often in Indonesia called a “Separation of Assets,” entirely separates the assets of the spouses, both before and after marriage so that the Indonesian partner is then able to legally acquire landed property in his or her name.

Bali Update: Understood. So what has changed to cause such confusion?

Rainy Hendriany: The problem with the law as it stood was that many, in fact most, mixed couples only ever discovered these points of law after they were already married, by which time it was too late. Indonesian law does not provide for Postnuptial Agreements so in the conveyance of property aNotary/PPAT will always ask for a copy of a Prenup when the Indonesian buyer or seller is married to a non-Indonesian, which is identified from the“KK” or Family Registration Card, which all Indonesian Households are required to have and which is also required by the Notary in a property transaction.

Bali Update: So the failure to create a Prenup before marrying results in making it legally impossible for such couples ever to own property held in the name of the Indonesian partner? Is there no solution for such an oversight?

Rainy Hendriany: Correct, and it could be argued that the Constitutional right of all Indonesian citizens to own property in Indonesia was being denied to an Indonesian simply because he or she married a foreigner. And that is what resulted in changes to the regulations. An Indonesian woman, finding herself in that very position, made a submission to the Constitutional Court requesting an examination of whether the existing legal framework was inconsistent with the Indonesian Constitution.

In summary, the Constitutional Court ruled that the provisions of both The Constitution and The Basic Agrarian law regarding restrictions on the foreign ownership of landed property in Indonesia are a matter entirely at the discretion of the Sovereign State. However, it also found that the Constitutional right of all Indonesians to own property was being denied to Indonesians in mixed marriages without a Prenup.

The Court, therefore, ruled that to protect the Constitutional property ownership rights of all Indonesians, it should be made possible to enter into a “Separation of Assets Agreement” after marriage as well as before!!

Rulings of the Constitutional Court take effect immediately and other laws and regulations, including the Marriage Law, will have to be revised and brought in line over time.

Bali Update: So what does that mean for mixed couples in practical terms?

Rainy Hendriany: What it means is that such couples who are already married without a Prenup are now able to obtain a “Separation of Assets Agreement” which then legally allows the Indonesian spouse to buy landed or residential property in his/her name.

For couples who are not yet married, in general, it is still preferable to enter into a Prenup before marriage, especially where the Indonesian spouse already owns property and will bring it into the marriage because ownership of that property within the marriage would still be illegal during the period after marriage but before the Separation of Assets Agreement was entered into. However, with the new ruling, even if a mixed couple were unaware of the law prior to marriage, they may still now maintain the Constitutional property ownership rights of the WNI (Indonesian Citizen) partner by executing a Separation of Assets Agreement after marriage.

Bali Update: So, back to the original question, it is not correct that a Prenup is no longer necessary, just that it can now be obtained after marriage not only before marriage as before?

Rainy Hendriany: Exactly. It should also be understood that the legal restrictions on the ownership of landed property by non-Indonesians remain exactly the same as before this Constitutional Court ruling. In summary, it is illegal for non-Indonesians to buy landed property in Indonesia and Indonesian law does not recognize the beneficial ownership of landed property through the use of nominees.

Bali Update: Which brings me to the second topic I wanted to raise with you about the changes to regulations that were supposed to liberalize the foreign ownership of property. Here again, there is a lot of confusion in the community. Can you help clarify?

Rainy Hendriany: Yes, I’ll try. We did discuss the new Foreign Ownership Regulation previously but since then two sets of Implementing Regulations have been issued, which have made matters even more uncertain, contributing to the confusion.

Let’s start with some facts. First, as I just said, it is important to be aware that Freehold and HGB titles can still only be held by Indonesian citizens and, in the case of HGB Title, also by legally established Indonesian Legal Entities, for example, a company.

Second, turning to the matter of foreign properly ownership, there have been some changes to regulations, which I will get to shortly. These actually only affect Hak Pakai Title which is available to qualified foreigners, which means they must be legal residents of Indonesia with a KITAS Visa or higher.

Third, although commonly misunderstood, a Hak Pakai title is not a leasehold but a form of ownership Title involving the issuance of a Land Certificate, which is a Title Deed, in the name of the owner. Like HGB title, it is issued for a limited initial period but through extension and renewal the total duration of both is now eighty years.

Fourth, and without going into the legal history, a Hak Pakai Title is granted to a qualified foreigner for residential purposes only, so the property may not be used for other purposes. So, for instance, it can’t be rented out on a commercial basis during periods that the foreign Hak Pakai owner is not in residence.

Fifth, Indonesians, in general, do not buy properties under Hak Pakai Titlebecause it is difficult to get the Title upgraded and there are always many properties available with HGB or Freehold Title.

Bali Update: OK, but as I recall none of that is new, so why all the confusion if basically nothing has changed?

Rainy Henriany: I think in part it’s because the changes to regulations were extensively hyped in advance by the English language media in Indonesia and by some parties with vested interests in selling property to foreigners depicting any changes as being revolutionary in nature; so the expectations were very high.

Getting back to the actual changes in regulations. The Indonesian Authorities, under a lot of pressure from Nationalist interests in Parliament, finally issued a new Government Regulation, the “Foreign Ownership Regulation” which was largely cosmetic, applied only to foreign residents of Indonesia and even then really didn’t change much of anything other than tinkering with the renewal and duration timelines of Hak Pakai Title to bring its duration in line with HGB Title. In fact, in some respects, the new situation is even more restrictive than under the previous Regulations.

The regulation now requires that a property may only be bought by a qualified foreigner as a new property (House or Apartment) from an Indonesian person or entity and there are minimum values placed on the value of a property, which a qualified foreigner can buy. This requirement from whom a foreigner can buy, and therefore to whom he can in turn sell, was not in the previous regulation and it is problematic.

In both cases, the title has to be changed into Hak Pakai, which can be costly and difficult because it requires a Land certificate to be issued by The Land Office (BPN) in the name of the foreigner.

For Apartments, I don’t think this is realistic because as developers in general sell ownership of individual Apartment units – Actually more correctly described as condominiums – under Strata Title over HGB land,which is only available for Indonesians. Obviously, Indonesians are the main buyers of Apartments.

So to sell Apartments to foreigners, a developer would need to offer all units in a development with Strata Title over Hak Pakai land and sell all the units to foreigners because Indonesians would not be interested. The is not an attractive business proposition.

As usual with government regulations, the “Implementing Regulations” are often as important as the regulation itself. In the case of this regulation, there have been two sets of implementing regulations, both issued since we last talked.

These regulations have clarified various aspects of Hak Pakai ownership, including inheritance and established the minimum price for houses and apartments allowed for purchase by foreigners. They also confirm that a property owned under Hak Pakai title by a qualified foreigner must be sold within one year of the foreigner becoming no longer qualified (generally no longer resident in Indonesia).

The first implementing regulation provided that if the property was not sold within this period, it would be auctioned by The Indonesian State and the proceeds transferred to the owner. None of my clients felt comfortable with that provision. The second regulation, replacing the earlier version, went silent on this state auction provision whilst confirming the one-year limit. It also made a concession that a used Hak Pakai Apartment (Not a House)could be bought but it was also silent as to whether the seller could be another foreigner.

So the main issue with the so-called “New, liberalized Foreign Ownership Regulation” is this: Having bought a property with Hak Pakai Title, should you no longer be qualified or should your circumstances change and you want to sell, who is going to buy? Foreigners can only buy new properties from Indonesians, other than perhaps a used apartment, which is probably irrelevant because of the title issues we discussed earlier. It is also unclear whether a foreign owner of an apartment may sell the used unit to another foreigner but until clarified otherwise it is safer to assume it may not, so there cannot be other foreign buyers. And the largest groups of potential buyers, Indonesians, in general, don’t buy property with Hak Pakai Title.

I hope that explains my earlier comment that in some respects this new Regulation and its Implementing framework may actually have taken a step backward in opening up the ownership of property in Indonesia to non-Indonesians.

As of now, the vast majority of my foreign clients still prefer the legal certainty of leasehold arrangements, which are available to all foreigners irrespective of their residential status in Indonesia. A leasehold, although conveying no ownership rights, if constructed professionally, provides that the remaining duration of the leasehold can be subleased to another party at any time, often at very attractive terms reflecting increases in property values, especially in prime locations. So this also provides a more legally certain “exit route”. Also, in a leasehold transaction, only the lessor not the lessee has any Indonesian Tax liability on the income from the transaction.

 

 

12 February 2017

Bali property purchase – leasehold vs freehold

Did you ever consider a safe leasehold agreement for your beloved property on Bali Island?

Freehold properties on Bali Island are still the most requested and purchased properties on Bali Island by foreigners – despite the necessary use of an Indonesian titleholder (nominee) for the land certificate is announced as completely illegal by the Indonesian law & regulations to purchase property in Indonesia by foreigners. With the recently announced tax amnesty and the associated digitization of all properties owned by Indonesian citizen and their legal income, this “illegal practice” becomes now even more worrying.

bali-property-purchase

 

 

 

 

 

 

 

If a property is not properly declared by your Indonesian nominee (who provides himself as the titleholder for an actual foreign owner) to the amnesty tax office, serious problems may occur sooner or later and the illegal use of an Indonesian titleholder will most likely come to light and thus a lot of troubles. A much safer way is a leasehold contract/agreement (hak milik) which can now under recently announced new regulations be issued for up to 80 years for foreigners. If you like to get more information on this matter, do not hesitate to contact us for more details.

 

25 January 2017

The phenomenon of the Bali KITAP Visa

There is much to say and much being already said about the KITAP (Kartu Izin Tinggal Tetap), the permanent stay permit for foreigners living in Indonesia. It is relatively unknown, but mostly misunderstood and/or misinterpreted. This article tries to clear the air around this permit which after all hurdles are taken, is actually your license to enjoying remarkable Indonesia permanently.

The Indonesian immigration law No. 6 of 2011 rules the KITAP in a few paragraphs only, where it explains who (No. 54) and when you qualify (No.60), how long it IS valid (No. 59) and who is given the right to work  (No. 61). But how long does it take to get it, and what are the benefits and what does it cost? Over the years the questions and the answers regarding the KITAP have lead to a quite complete view of this phenomenon.

bali-visa-kitap

WHO qualifies for a KITAP?

  • The expat (spouse) who is married to an Indonesian national.
  • The investor or main shareholder of Indonesian companies (PT & PMA)
  • The top-employees of a company – in general the directors & commissioners
  • The retire ( 55) who like to stay and get old in Indonesia
  • The former Indonesian citizen, who wants to regain his old citizenship

WHEN do they qualify for the KITAP?

  • The spouse as soon as the marriage has passed 2 years and after getting a KITAS first
  • Investors, top employees and retirees after they obtain a KITAS for three consecutive years
  • The former Indonesian qualifies immediately

HOW long is a KITAP valid?

  • The period is 5 years and if the status of the expat doesn’t change, it will be automatically extended after those 5 years and one only need to apply again. NOTE: in the event the marriage has lasted 10 years, the KITAP continues for life, even when divorced after 10 years)

DO you have the right to work?

  • Based on article No. 61 of the immigration law, only the spouse sponsored KITAP holder has the right to work and this is clearly stipulated. The law wants the expat to be able to earn a living for his family.

The expat can choose to work as a sole entrepreneur (…and avoid the hassle and dazzle of the IMTA (working permit) or decide to work for a company as an employee and obtain that IMTA. In such cases the company will become the sponsor of the IMTA only, while the Indonesian spouse will remain the sponsor of the KITAP.

WHAT about the expat director married to an Indonesian national?

  • If this expat being appointed as a director of a company he automatically has the right to work and doesn’t need the article No.61
  • The deed or articles of association, mentioning his position, is enough to get him a work permit
  • NOTE: If one can choose between the company or the spouse as a sponsor of the KITAP, the spouse is preferred; in cases of employment issues you might lose the IMTA, but you keep the KITAP.

HOW do you get the KITAP

  1. If you are eligible, by first gathering all required documents/attachments (see below). This is already causing a major hurdle since many documents appear not to be valid anymore or even not available yet. Many government institutions need to be visited to obtain the right documents.
  2. The second step is the actual submission of the KITAP application and attachments with immigration and visit the 3 levels of immigration local (kanim), regional (kanwil) and national (dirjen) on the way.
  3. The KITAP process demands a third step. One must obtain a local police registration (STM) and a ID card (SKTT) with the local city hall.

WHICH documents are needed?

Lot’s of em!! In general the following paperwork is needed:

  • Valid passport
  • KITAS card
  • Current civil registration (STM m& SKTT)
  • Marriage documents (certificate, books, registrations)
  • ID of Indonesian spouse
  • Family card of the spouse (KK – kartu keluarga)
  • Letter of domicile (LOD)
  • Request letter for change KITAS to KITAP
  • Application form – NOTE: In the event there is no spouse sponsored KITAS yet, this is needed to be obtained first.

If the company acts as sponsor (for the director, commissioner or investor)

  • Passport
  • KITAS, IMTA, SKTT of last 3 years
  • Deed and ministerial approval letter
  • Tax ID
  • Tax ID & KTP of Indonesian HR manager
  • Business registration
  • Business license
  • Yearly report of employees (WLK)
  • Companies foreign workers employment plan (RPTKA)
  • Work permit (IMTA)

HOW long does it take?

If all the rqueird documents are submitted, only 8 to 12 weeks for a standard case. A standard case is a case where all required documents are available. It is actually an almost automatic and smooth process if all attachments needed are present.

WHAT are the benefits of the KITAP?

  • A 5 year valid stay permit
  • A 2 year valid travel permit (MERP)
  • An Indonesian ID (KTP, 5 years valid)
  • An Indonesian driver license (SIM, 5 years valid)
  • Obtain bank accounts, credit cards and loans
  • Get local prices when booking 4-5 star hotels

How much does it cost?

To give an indication for the whole KITAP process of a standard case:

  1. 40.500.000 IDR based on a marriage, former citizenship or for a retire
  2. 45.000.000 IDR based on a company sponsorship

These prices include all government dues and agency fees. For various formalities agencies carry all different prices. Depending on the availability of the documents needed, to be able to submit an application that will be approved, the price can be increased.

 

10 January 2017

North Bali Tourism – Port of Celukan Bawang Inadequate for Large Cruise Ship

In the early decades of the 20th century, all passenger and cruise ships visiting Bali called at the northern port of Celukan Bawang where passengers disembarked their ships and traveled overland to Denpasar where limited hotel and tourist services were available.

With Bali’s growing popularity as a port-of-call for cruise ships, the north Bali port of Celukan Bawang is enjoying renewed popularity as more and more passenger ships are stopping on the Island’s north shore.

bali-cruise-ship-port

Mainly used for cargo and goods ships, the Celukan Bawang Port lacks the needed supporting infrastructure for cruise ships carrying hundreds of passengers. Managed by the State-owned company PT Pelindo III, Celukan Bawang can only accommodate vessels with a maximum length of 200 meters.

Quoted by Balipost.com, PT Pelindo’s Commercial Manager at Celukan Bawang, Irfan Adistya, said five cruise ships visited the port in 2016.

Adistya said that the current condition of the pier at Celukan Bawang was inadequate for cruise ship service. With a length of 160 meters, the pier can only berth ships with a maximum length of 200 meters. Many ships wishing to call at the port are longer than 200 meters.

 

15 December 2016

Indonesian property ownership

There is good news for expatriates married to Indonesian citizens. On Thursday 28th October 2016 the constitutional court ruled that the need for a prenuptial agreement (which, of course, has to be made before marriage) to allow Indonesian citizens in mixed marriages to own property is unconstitutional.

What this means as that Indonesians already married to foreigners but who do not have a prenuptial agreement can now make a contract separating ownership and this will allow the Indonesian to own property. Note that the contract is necessary to nullify local laws that state that in a marriage all assets are of shared ownership. This is good news for those who married an Indonesian and bought property without realizing they needed a prenuptial agreement. Our thanks go to the wonderful people of PerCa (the mixed marriage organization) for fighting and winning this battle
(see http://www.percaindonesia.com).

It is, however, important to note that there is no change to the law that says foreigners cannot own land in Indonesia and that nominee ownership arrangements to get around this law are considered absolutely illegal.

Kadek Monic Rustini
PT. Bali Property Indah

 

12 November 2016

Bali Real Estate News – 2016 Tax Amnesty complicates the position of nominee property owner in Indonesia

A tax amnesty program recently introduced by the Indonesian Government may herald some unexpected problems and complications also in the Bali property sector where the controversial – and actually illegal – use of local nominees by foreigners investing in freehold status properties in real estate remains widely used.
Under the new (July 2016) introduced tax amnesty program business owners and tax payers are being encouraged to declare their personal assets as a means of bringing much needed foreign exchange back to Indonesia and eventual compliance with the tax codes.

The new tax program however poses a dilemma for Indonesians who have lent their names as the owner of record to foreign investors purchasing freehold status properties who are urged under the amnesty to declare their assets and settle their outstanding tax obligations. But in doing so, the Indonesian nominee might potentially trigger audits on the part of tax officials if the nominee’s reported income sources were deemed insufficient to finance the declared property assets.

In Bali many nominees are used by foreign property investors are low-income Indonesians, who sign poses as nominee out of friendship or for a modest fee.
Moreover, if a nominee declares his “ownership” of a property in Bali and the subjected property is found to be in arrears on its taxes, problems may arise over settling the resulting tax obligations arising for both the nominee and ultimately the foreign investor.

The nominee’s location is clear and his data easily identified if his (the nominee’s) wealth is not reported, the local partner (nominee) will suffer because he is the shown owner. Moreover, if at some point in the future the foreign investor stops cooperating with the local owner (nominee), the tax burden will devolve to the local.

While recent changes in the rules governing foreign land ownership have been put in place that at first glance might be seen to encourage direct foreign ownership, a closer examination of these changes show that little has actually changed and that in fact, direct ownership of property by foreigners is as problematic and impossible as it ever was in Indonesia.

High minimum investment values and strict conditions imposed on the future sales/transfer of properties owned by foreigner or his/her estate creates obstacles and disincentives to the purchase of property by the foreigner.

The Indonesian government will be firm in dealing with nominee owners in Bali and notaries have to cooperate in this effort in order to safeguard the interest of the local people.

BPL Team

 

6 August 2016

new-north-bali-airport

 

 

 

 

 

 

 

 

The endless story of a new North Bali airport development to boost economy and land prices in the Buleleng regency…

…lasts already since 2007 without any serious actions committed till today.  After several different destinations announced for the new North Bali Airport in the previous years, it seems the final destination of this “fantasy project” is now located in the Kubutambahan area. As reported by NusaBali the Bali governor is about to issue a recommendation for the so called “Dwijendra International Airport” in North Bali:

Bali’s governor Made Pastika is expected to soon issue a recommendation supporting a Canadian Company seeking to build an airport in the North Bali regency of Buleleng.
Pastika said: “I have already received a detailed plan from Airport Kinesis (AKC) which is the most serious proposal I have seen to date. They have conducted a long term survey and are now awaiting supporting recommendations from the provincial government and the regency. These recommendations are one of the requirements needed by the ministry of transportations.”

AKC has completed a prefeasibility study for the development of an airport at Kubutambahan in the Regency of Buleleng. With a supporting recommendation from the Province of Bali it is expected that AKC will undertake a more detailed plan for what would become Bali’s second international airport.

The province of Bali is hopeful that the proposed airport of the North could be funded by the private sector, as Central Government is no longer considered possible National priorities now focused on development in Eastern Indonesia and border areas.

With estimates for developing the ew airport put at IDR 30 Trillion, the provincial government of Bali views such cost as outside the limits of Bali’s funding capabilities.

AKC has presented a plan for the airport – nominated to be called the “Dwijendra International Airport” on reclaimed land in an offshore location at Kubutambahan.

BPL Team

 

25 April 2016

Welcome to our first blog…

…for bali property real estate. We will regularly inform you on our blog page about news on the real estate market on Bali Island and about new relevant news, updates and changes by the Indonesian government regarding property ownership laws and regulations – especially important for foreigners purchasing or seeking to purchase property on Bali Island as an investment, business or as a residence!

bali lovina property

 

 

 

BPL Team

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