BALI PROPERTY NEWSLETTER − Feb. 2011.

Special H−O−T Bali Property Offers

Fantastic, large rental home near the beach (4 minutes walk) at Sanur Beach. Offered at an exceptional price.
Great business opportunity 10 apartments located in the center of Sanur near the beach, Hardy's and a multitude of other Sanur attractions!
Canggu Hotel with ocean views, has one large villa and 4 bungalows, only about 300 meters from the beach!

HUGE DEAL − GET A DISCOUNT OF 37% ON BALI PROPERTY

Today we have 46 property listings priced in US Dollars. Since March of last year almost all currencies have gotten stronger against USD exchange rates. One great example, a hotel in Sanur that would have cost AUD 507,000 last March, is NOW ONLY AUD 318,000. Just open this web page to see all the properties which are priced in USD and can now be bought at fantastic discounts.
Discounted Bali Property List

Other New Listings from Bali Property Info.

Guidance for Foreign Ownership of Bali Property.

Through information presented in a Global Property Guide for Indonesia: Land − Foreigners are not allowed to own freehold land.
Nevertheless, they can acquire rights to the use of land but not ownership rights.
There are three options open to foreigners for buying in Indonesia:
1. Through an Indonesian representative It is common practice to have an Indonesian representative acquire land for the foreign buyer. Ownership of land must be transferred from the previous owner to the Indonesian representative. For the foreign buyers security, three agreements must be entered into with the Indonesian representative.
  1. Loan Agreement − this states that the foreign buyer lent the purchase price to the Indonesian representative.
  2. Irrevocable Power of Attorney − this gives the foreign buyer full authority to sell, lease, mortgage, etc. the land.
  3. Permanent Right of Use Agreement − this gives the foreign buyer full rights to the use and occupancy of the land.
2. Through a Penanaman Model Asing (PMA) Company PMA is a "status of doing business" in Indonesia. A PMA company can be completely controlled by a foreigner and has 30 years to operate after formation. It can be granted additional 30 years, and another 30 years, if it expands its project through additional investment.

The Right to Build (Hak Guna Bangunan − HGB) is available to PMA companies. The right to build or construct on land is valid for 30 years. This can be extended for an additional 20 years, and even for another 30 years after that.
To set up a PMA company you will be required to:
* Submit a detailed business plan.
* Operate in a business environment that adds value to Indonesia in terms of foreign skills, employment and environmental benefit.
* Make an appropriate cash deposit in an Indonesian based bank. (The amount varies and is calculated from the capital employed in the business).
* Show the property investment as an asset of the company.
The process takes approximately 3 to 4 months and once completed the company can apply for work permits for the foreign directors, 3 permits in the first year of operation.
The cost of setting up is around US$6,500.

3. Through a Leasehold Title This can be granted to qualified foreigners who are domiciled in Indonesia with a KITAS working visa. The lease runs for 25 years, and can be renewed for another 25 years.
It is important to hire the services of an Indonesian lawyer to assist with the transaction, especially with the monetary exchange. All land transactions must take place at the Indonesian Notarys local office,for Pejabat Pembuat Akta Tanah (PPAT), where the land is located.
There is no code of conduct for real estate firms in Indonesia; they do not have any legal obligation to protect the buyers interests and guarantee the title. Likewise, there have been reports of impropriety by "lawyers" in Bali, and we would suggest that you seek recommendations of 1 or 2 previous clients to have a basic, due diligence accomplished on the chosen legal professional. If you want a referral to a Notaris with multiple happy clients, please contact us for this information.
Stamp Duty of INR6,000(US$ 0.64) is required for each document copy of the Land Deed. Two copies are needed.
There are registered and unregistered lands in Indonesia. The Basic Agrarian Law of 1960 governs certified land, which is registered at the local land office. Unregistered land, Adat land, is community−owned. An examination and confirmation of the registry of the land certificate being bought is important.
The whole process of registering property involves seven procedures and takes around 40 to 60 days to complete.

Editor − R Kalhoefer, Sales@BaliPropertyInfo.com +62 81338 997755