In Reply to: For those considering renting a house posted by Charliebalibear on Wednesday, 20. October 2010 at 18:47 Bali Time:
Long.. but interesting reading re RMA 7/96 & Kitas/Visa..
"Government Regulation No. 41 of 1996 (GR41/96) states that "foreigners resident in Indonesia" can hold a Hak Pakai title.
This broad definition was clearer defined with the issue of "Regulations of the Minister for Agraria" No. 7 of 1996 (RMA 7/96):
Article 1(1) states that "a foreigner whose presence in Indonesia gives opportunities for national development" may own a property under Hak Pakai, and Article 1(2) says such a foreigner is one who "has and maintains an economic interest in Indonesia by implementing an investment in the ownership of" that property.
In a letter accompanying RMA 7/96 the Minister stated specifically that, according to this new concept, a foreigner will qualify for Hak Pakai even if he is in Indonesia only "from time to time".
In other words, the Minister says any foreigner who invests in and maintains a property in Indonesia is contributing to national development and therefore entitled to hold a Hak Pakai title - even if he is only an occasional visitor to Indonesia..."
http://www.deplu.go.id/melbourne/Pages/FAQ.aspx?l=id
"Based on a Presidential Decree issued in June 1996, foreigners domiciled in Indonesia are allowed to own one residential property. To meet the regulations of ownership of a house or an apartment, a foreigner must be deemed to be "beneficial to national development" and must be either:
•An Indonesian resident (domiciled permanently in Indonesia) in possession of a permanent resident permit
•A non-resident (domiciled in Indonesia only at particular times) in possession of appropriate visit and immigration stamps in his/her passport."
http://www.bali- information.com/IndonesiaPropertyOwnership.php
Hak Pakai - The Right to Use
Hak Sewa - The Right to Lease
The property, and any improvements to it, revert to the original owner at the expiry of the term of the lease.
Lease periods vary, and extensions are often agreed in advance.
The total cost of the lease for its entire duration is paid on signing the contract.
"Hak Sewa (Leasehold) is perfectly legal and requires only a simple contract between lessee and lessor. Such a contract cannot be longer than 25 years but through various renewal clauses, the lease can be put in place for periods of time which are adequate for the needs of most investors. In this vehicle, the land title remains with the Indonesian owner of the land."
http://www.bali discovery.com/messages/printmessage.asp?Id=4024