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Monday, September 17, 2007

BALI - Freehold Land Title for Foreigners in Bali: Caveat Emptor

Balidiscovery.com, (9/9/2007)

Foreigners trying to obtain a freehold title on land in Indonesia should note that current law is clear in both its letter and intent: namely, foreigners cannot directly hold freehold title on Indonesian land.
Despite this lack of equivocation by the Government on the continuing prohibition of foreign land ownership; it is ironic to discover real estate companies have erected booths in the arrival halls of Bali's airport, placed ads in local publications and distributed brochures – all advertsing "freehold" land in Bali. Given the state of current property law, the very use of the English language term "freehold" in connection to a local property transaction involving a foreigner is highly suspect and is a tactic that, in other jurisdictions, would form the basis of a criminal prosecution.

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