Can I buy a shop in a Mall in Indonesia?

Hello Mr. Mo,

Please note that your topic has been moved to the Indonesia forum for more visibility. You will be able to receive more specific answers here.

Thank you,

Priscilla
Expat.com team

“Buy a shop” in a mall?  Aren't shops within malls here normally available on a lease basis as opposed to outright purchase/ownership?

Even with brand new malls being developed, does one actually get a “Hak Milik” (land ownership deed) when “purchasing” (actually leasing long term) a shop within that mall?  The answer is no. 

Can you as a foreigner (holding a KITAP visa) take a lease on a shop within a mall?  Yes, but of course that lease would require a business entity as the leasee, and you would be required to have a work permit, tax ID number, etc. 

Not to pry into your personal relationship with your Indonesian wife…but you might consider that in her name that such a lease contract be best issued. 

A basic “rule of thumb” here is rather simple…contracts are always best (when given the option) if they are issued in the name of Indonesian spouse to a marriage.  Without getting into matters of trust within a marriage, consider that pre-nuptial agreements are designed to specifically handle that issue.

Hi dear, once again thanks so much for clarifying the issue that I was really looking for to make my mind. Frankly to say I want to buy /lease a shop in my Indonesian wife name in a shopping mall & I have to pay about 500,000,000 Rps. The most important things is/are I want to save this investing money for my old age earning here in this country & no one can predict about what would be happen in the future, what would be happen between the 2 married couple. In case we couldn't getting along anymore, what I should do before or during the lease contract? What is the legal & the remedy solution for not to be used by my wife or taken advantage of my honesty in this regard. Kindly advice in simple English because I am French native & much appreciated indeed for your time & your attention as well, take care.
Sincerely,
Mr. Mo Mario

Ubudian wrote:

“Buy a shop” in a mall?  Aren't shops within malls here normally available on a lease basis as opposed to outright purchase/ownership?
.

I can't speak for Bali but I have seen many units for sale within older malls in Jakarta and surrounding areas.
This is commonly noted by a hand written paper sign in the window.
The newer malls never have signs in the windows but I'm guessing the mall owners don't sell.

As for ownership of a unit within a mall, I wonder how that works.
A foreigner can't own LAND in Indonesia but (I stand open to correction here), I think we can buy an apartment.
Assuming I'm correct, that probably means we can buy a unit in a mall.

Caveat emptor - As a foreigner, they'll probably try to rip you off on the price and prices are through the roof anyway at the moment. The general situation in Indonesia seems to be one of an economy just past its peak and on the way down.
I noticed a new housing estate last week that had dropped its base price from 1,2 billion  to a about 950 million and my regular  wanders around technology shops are seeing a lot less stock on display and more and more empty units every month.

Mall owners that would "sell" individual stores likely do this through the Building Ownership Certificate (SKBG) which is completely detached from land rights. 

In May of last year (2013) there was supposed to be a new regulation going into effect which would allow foreigners in certain parts of Indonesia (Jakarta being one) to purchase condominiums under this Building Ownership Certificate (SKBG) arrangement, but limiting the time the foreigner could hold the condo to 60 years with the possibility of being renewed for an additional 60 years, and applicable only to units with a value of at least 2 billion IDR. 

I am unaware if that regulation has in fact been officially adopted or not, nor am I aware if that regulation, clearly aimed towards housing needs, would also apply to stores within a mall (for foreigners).

Hi Ubudian,
Whom it may concern;
Concerning buying property in Indonesia, experties & several sites advised that the best way to buy in your Indonesian wife & enable to eliminating any rip off by wife or who ever apparently the owner, should get four documents, Ok understood but what would happen if the wife denied or rejected the idea to resell the property which is legally in her name? So what is/are the legal way(s) to prevent such issue in the future? Hope to hearing from you in this regard, thanks.
Sincerely - Mario

Mario, a concept within the real estate laws and marriage laws is to prevent a foreigner who happens to be married to an Indonesian citizen to become vested in any way with real estate ownership rights that are currently denied to non Indonesian citizens.

If you feel uneasy about putting property into your wife's name as outright deed holder (Hak Milik) then consider going the Hak Pakai route (long term legal lease) which can be in your name, is legal and binding.

I understand:

In Indonesian law, all property (except inherited) is owned equally by man and wife.
Even if the property is in her name, you own half of it.
Indonesian law does not allow you to own land.

A well written prenup would sort that out and leave you safe in the event of divorce.

https://www.youtube.com/watch?v=SzZzGxReXmo

"Even if the property is in her name, you own half of it."

Except the land.  The house, everything in it, yes...but not the land. 

Even a prenup will not get around the lock tight law that a foreigner cannot own land in Indonesia.  Death or divorce of the Indonesian spouse doesn't present a loophole where the foreign spouse can have legal ownership of the land formally in the name of the Indonesian spouse.

There are legal contract not in other name, legal for foreigner not only for lease.
info legal consultant >> [email protected]

Hi & thanks. Also kindly advise if:
I am a foreigner, Married with Indonesian but we have no "pre-nup", hold KITAP, during the first year of our marriage both of us contributed money to buy a big house in her name, then she fund out that due to the law restriction we can not own a house/land or what ever..! So she transferred the house in her daughter name. The daughter is going to get married this year & I am not sure when? Also in case we got divorced, in between what is going to happen to the money I have contributed. Kindly advise the steps should be taken & it would be much appreciated. Please write back to: [email protected], thanks.
Best regards - Mo

Mo, you "hold a KITAP" but "Currently living in Saudi Arabia" (according to your profile). 

Your questions are best asked of an attorney.

Mo Mario wrote:

Hi & thanks. Also kindly advise if:
... that due to the law restriction we can not own a house/land or what ever..! So she transferred the house in her daughter name. The daughter is going to get married this year .....

Ubudian, is there any restriction like this in your country?? I wish Mo is not going into a trouble after the marriage of his step-daughter!

Hopefully your step daughter and her husband are very honest people. But it also worries me that you can even talk about what happens if you get divorced. Hopefully you have a solid marriage.

“Ubudian, is there any restriction like this in your country?? I wish Mo is not going into a trouble after the marriage of his step-daughter!”

There are a number of regulations (laws) relating to property ownership of foreigners and intermarriage with local Indonesians.

In general these laws are designed to protect property rights of Indonesians and to comply with land laws which forbid land ownership by non Indonesian citizens.

There are lots of issues to consider here, and these issues are personal issues to Mo and his Indonesian wife…for example, are they planning on having children of their own?  There are also discrepancies in what Mo has told us thus far…KITAP visa (a permanent residency status in Indonesia) yet a profile indicating his residence in Saudi Arabia. 

As I said, these matters are best discussed in the presence of an attorney who can draw up any necessary agreements, last wills and testaments, etc. to be certain that any land currently being held by Mo's wife are properly handled in the event of a dissolution of their marriage or the death of either, or both.

Open and public forums are not the place for these types of discussions as these matters are private and most often have aspects unique to each marriage.