This far leasehold investment is the only way for the foreign investor to do the leasehold investment in Indonesia. Leasehold investments provide full protection for foreign investor, which is clarified in the leasehold investment agreement. The leasehold agreement is made and legalized by the Notary or Legal Officer who recommended by the government. Business debt collection doesn’t have to be stressful,this leasehold agreement also mentioned about the validity of the agreement, normally for 20 years time period. This agreement could be able to extend or unable with certain options, such as : building development authority, expanding and the ownership status of the building which was build on the rented land when the agreement is ended and other cases. All the agreement that mentioned in the leasehold agreement should be clear and approved by the both sides, which are between the lessee and the lesser. The foreign investors allow doing the negotiation directly to the land owner regarding the price in the contract.
Indonesian Nominee Power of Attorney Agreement
The foreign investor do not have the authority for land ownership in Indonesian law territorial, therefore based on the Indonesian constitutional the foreign investor still have the possibility through the third party who is Indonesian citizen which is very often called Indonesian Nominee. The Indonesian nominee could do anything on behalf of the foreign investor who entrusted them through the legal agreement which is legalized by the Notary or Legal Officer. When the transaction of the land or other properties happened, the certificate of the land will be kept by the foreign investor. Indonesian law prohibited people to sell the land or property without a legal certificate. In this kind of transaction, the Indonesian nominee only is a deputy of the foreign investor. Foreign investors have the full authority to build, to sell, and to rent out the property to other people. Regarding to the transaction if the law regulation in Indonesia is change then the name of the investor will be automatically written in the legal certificate as the owner. The Indonesian nominee has a right for the commission which is depend on the agreement between the investor and the Indonesian nominee for the responsibilities as a deputy for the investor.
Foreign Capital Investment Company Structure
Law in Indonesia gives the possibility for the foreign capital investment company to invest without an Indonesian citizen partnership. The foreign investor could own 100% share of the foreign capital investment company. The ownership could have 30 years time period limitation and could be extending with certain charges. This law regulation always is being renewal to give bigger possibilities for the investor to do the investment realization. The foreign company such as corporate company do not have the authority to own permanently of the property in Indonesia until now, but they have the right to use the building which could renewable for 20 to 30 years time period.