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

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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


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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.





Bandung Property

Housing Residence in Bandung

There is plenty of Housing Residence around Bandung; there are lots and lots of it. Some are in compliance with regulatory requirements, some not. Some are members of associations related to property such as REI (Real Estate Indonesia) and others are single fighter contractors.

The consultants that share and create these real estates are members of the Consultant Association of Indonesia known as Inkindo (Ikatan Konsultan Indonesia). The benefit of being a member of these associations is that the members are well known.

The Soekarno-Hatta area including gede bage :
Pratama Asri, D’casa grande, Cipaganti rahayu regency, Graha batu karang, Cipta pesona batu karang, Saturnus regency, Alamanda asri, Bumi adipura, Griya cempaka arum, Bandung inten indah, Bumi panyileukan, Bumi panyawangan, Pinus regency, Batununggal Indah, Graha bukit raya, Saluyu residence, Graha panyileukan asri

Ujung berung and sorrounding:
Ujung berung regency, Villa pasir wangi, Tamansari manglayang regency, Cipaganti dreamland, Bumi asri, Cibiru asri, Bumi orange, Permata biru, Griya mitra cinunuk
Eastern Bandung before Ujung berung (Suci, antapani, arcamanik):
Surapati core, Puri jatihandap residence, Jatihandap regency, Green valley residence, Jatihandap city view, The green padasuka, Pasir layung asri, Giri mekar permai, Arcamanik raya, Nirwana, Anggrek residence, Bandung city view, Tamansari Bukit Bandung, Green Hills Jatihandap.

The Sariwangi Area :
Sariwangi city view, Puncak sariwangi, Griya Amanda, Sariwangi regency, Cihanjuang regency

Dago(Ir H.Juanda Street) and sorrounding:
Cigadung permai, Bojong koneng makmur, Alamanda

Southern Bandung (dayeuhkolot, buah batu, kopo dan sorrounding):
Taman kopo indah (TKI I,II,III), Taman cibaduyut indah, Cijagra indah, Permata sukamukti, Buah batu regency, Permata buah batu, Graha rancamanyar, Permata kopo, Bojong malaka indah, D’amerta, Graha sari endah

The Banjaran :
Griya permata indah,
Soreang Padalarang:
Pondok padalarang indah, Kota baru parahyangan, Graha padalarang indah
Cigondewah:
Rahayu, the garden residence
Cimahi Area :
Puspa regency batujajar, Graha marga asih

Subsidised Apartement in Bandung:
Sanggar hurip (Soekarno hatta area) in Sanggar kencana, Buah batu apartmen park, Kopo Apartments, The edge in Cimahi

Bandung Property

Tips on Selling Property and doing transaction In Indonesia

These are a few tips when dealing property in Indonesia :

• Make sure it is in good condition. Repainting the walls, fixing leaks, door knobs and mowing the lawn are some list of work that must be done. If it is in superb condition, as the owner we will have confidence while presenting the property. And in whole it will give a higher perceived value.

• Determining the right market value. This is not an easy task. Whether you want to sell your property or open it for rent, the determining the right price is a challenging task to do. It would not hurt if you ask the market value in your area with a specific condition. That’s the easy way. For more precise valuing of property than you can appoint a property appraiser consultant.

• The status of Ownership is also an important thing to know. In Indonesia there are largely 2 known different types .They are SHM (Sertifikat Hak Milik –Total Ownership Certificate), foreigners are prohibited to own with this Rights .The other one is HGB (Hak Guna Bangunan – Right for Utilizing the Building) which means we have to extend the Right for a certain period of 20- 30 years. There are also Hak Guna Usaha (Commercial Use Rights) and Hak Pakai (Use Rights).

• Knowing the tax incurred in a transaction is important. For property selling in Indonesia, you will be charged 5% x NJOP or transaction value , which ever is higher. NJOP stands for Nilai Jual Obyek Pajak which means Selling Value of a Tax Object.

• Finding the right Authorities for transaction. In Indonesia it is known as PPAT (Pejabat Pembuatan Akte Tanah – Authority Creator of Land Act ). Usually the firm has a certified license to do transaction of property. The firm also usually is a notary. The cost of such service has a variety depending on each case. Minimum payment is around Rp 1.000.000,- equivalent to : USD 107 . This cost includes all the legal documents that will be created upon transaction. This cost is also assuming that we have already prepared the right documents.

• Some documents that we usually must prepare are : KTP (Kartu Tanda Penduduk - Permanent Resident ID), KK (Kartu Keluarga – The Family List Card legalized), Buku Nikah (Official Marriage Certificate) for married couples, the IMB (Izin Mendirikan Bangunan – License to Build a Building).

• The final day of transaction called the signing of AJB (Akta Jual Beli –The Buy Cell Certificate). A legitimate transaction of property must coincide the data that is kept in the BPN (Badan Pertanahan Nasional – National Land Authority) to avoid false transaction by parties not owning the property.

Editor

Bandung Property