What happens if a Company wants to buy land in Indonesia. ?

Buying land in Indonesia has some regulations tit tied to it. Especially if you are a company. Before we purchase a land or property we must understand some basic rights(HAK).

There are a couple type of rights in owning property in Indonesia (mentioned in the uniformed property act, we will list three of them as below:

• Hak Milik – HM (Owners Rights), the highest level of rights in Indonesia. This rights can be inherited and is diminished for reasons of voluntary, the land vanished or the land is sold.This rights can be inherited and for the time being only Indonesian Citizens has these rights.
• Hak Guna Bangunan-HGB (Building Use Rights)- This rights is the right that is given to the government to utilize a land to be used for agricultural, industrial, livestock and commercial business.This rights status is a time based right for maximum 30 years and can be extended to another 20 years and can be used for private use such as building a home.
• Hak Pakai (Utilizing Rights) – is the rights status to utilize or get the goods from a land that is owned by the state or individual that is certified by the PPAT (the Authorized Land Act Certifier). It is usually for 10 years of utilization of land.

The Case : A company wants to buy land.

If you as an owner owns a land which has a rights status of Hak Milik (owner’s right) and a certain company is interested in buying that land for the commercial use of the company. Can the company purchase it from you?

No, it cannot. Because a company can only buy a property that is categorized as HGB. So you as the land owner, must convert the land from the Hak Milik status in to the HGB status. There is a fee for converting this at the PPAT. Usually the cost of this conversion is subjected to the buyer in this case the company that wants to buy your property.

Tresna

bandung property

Property Demand will increase in 2010

Request property sector is expected to increase in 2010. The potential increase in property demand is supported including lowering of interest rate mortgages (mortgage).

"So, it's time to invest in," said Director of PT Bahana TCW Investment Management Budi Hikmat in a discussion in Jakarta, Wednesday, November 18, 2009.

Budi explains, the rupiah will also potentially strengthen against the U.S. dollar led to a target number of companies this year achieved. "In 2010 the liquidity will increase, so that positive trend," he said.

Excess liquidity, he continued, also can cause the lowering of interest rates. "It is stimulating domestic spending," said Budi.

However, the Director of PT Mandiri Manajemen Investasi Andreas Muljadi reminded, the inflation rate could reach 8-9 percent next year.

The reason, according to Andreas is inadequate distribution channels.

"As a result, transportation becomes expensive and still small numbers of harbors, preventing the smooth flow of goods," he said.

Interest rates reached 6,5-7 percent, Andreas continues, indeed a cursory low. "But for the regional, is still high," he said.

These conditions will affect the commodities industry, raw materials, and transportation. He also agreed, the property sector will experience increased demand.


Source: VivaNews

A Subsidised Apartment

I found this brochure about this subsided apartment at Cihampelas Area. Quite cheap.This goal is for the people with not much money for buying property, but it turns out to be an investment instrument for the haves.Anyways, its a good investment.