Batam Property Ownership for Foreigners

[Chiron]

It could be that I'm reading through some older information on decrees for property ownership in Batam, however it's not clear. Especially after the 2015 decree (No. 103/2015) that expanded the Hak Pakai extensions to 80 years. So here is the question: Can a WNA purchase and own a Hak Milik property in the Batam Special Economic Zone. Or is it under the same rules as the rest of Indonesia?

On another note, I've never been to Batam, but my wife has a low opinion of the place. Apparently there's a history of Batam being like the wild west. However, from pictures and recent YouTube videos, it seems like modern boom town. I noticed several nice resort hotels on TripAdvisor with decent ratings. Could be worth a visit someday.

 

[Daniel50]

I don't know but it looks like you are looking at all options besides Solo....hahaha......maybe I will see you in Bali.

I do remember reading something about it being a special economic zone, or the gov't wanting to make it this way, including different rights around property ownership but to what extent it was implemented or what the actual details are I am not sure and perhaps they aren't yet either.

 

[waarmstrong]

I don't know definitively, but I find it unlikely that an exception to the Indonesian Constitution has been carved out for Batam.

 

[Chiron]

What I'm referring to is Indonesian Decree 068/KPTS/KA/III/1999. Here is an interesting article from the Oxford Business Group, that talks about the property and condominium markets throughout Southeast Asia, with a focus on Indonesia. Ultimately they say that Indonesia has weak property rights compared to its neighbors (i.e. Malaysia, Thailand, Philippines, etc.). The statement that caught my eye was at the bottom of the article:

"No matter the length of the lease or the regulation under which it was written, it is still only virtual ownership as long as the constitution and the Agrarian Law remain. Expectations of anything approaching common law freehold are unrealistic. Even on the island of Batam, where foreign ownership is allowed under Decree 068/KPTS/KA/III/1999, advisers continue to warn investors that, ultimately, it is legally still Indonesia’s land."

@Daniel50 : Yes, you're starting to figure me out . The chances of not ending up in Solo are somewhat slim, but still open to suggestion. As the old saying goes, "men have goals, and women have agendas". My wife's agenda usually has the advantage. The problem with Solo and really Indonesia in general is every alternative for buying property has a trade-off, and all of them are unacceptable to either one or both of us. Our only real alternative is to rent, and the rental situation in Solo is not that great - at least in my opinion. Believe me, I have definitely scoped out Bali, and looked at villas with varying lease terms in Canggu, Jimbaran, Sanur, and Ubud. I have a couple real estate agents in Denpasar eagerly awaiting us to make our return there.

 

[waarmstrong]

I have tried to find the actual text of Decree 068/KPTS/KA/III/1999 but have been completely unsuccessful locating the Indonesian text or an English translation. That makes me a bit suspicious that the so called 100% foreign ownership may be anything but.

Those with a vested interest in selling Batam property tout the decree, but provide little or no contextual information. Is anyone able to find the actual language of the decree? My curiosity has been tweaked.

 

[jstar]

I've never been to Batam, but my wife has a low opinion of the place.

That is a rather common (mis)conception. The place is unsafe, and more for rich people from Singapore for weekend golf. Trust me, if you can live on Java, you could live there.

The chances of not ending up in Solo are somewhat slim, but still open to suggestion. As the old saying goes, "men have goals, and women have agendas". My wife's agenda usually has the advantage.

The crux of the matter is that most WNI spouses (to be somewhat sexist perhaps; esp. the females), even those who studied and lived abroad, would like to be close to their family. Family ties are amazingly important. Why do you think I spend so much time in Jakarta? A possible solution; if you can, select multiple locations. So every year spend a couple of months in Solo / where ever and also on Bali / where ever. Obviously the hurdle will be financial and logistical but perhaps renting out or ‘moving in’ might be a solution then? It works well for us, three locations per year.

I have tried to find the actual text of Decree 068/KPTS/KA/III/1999 but have been completely unsuccessful locating the Indonesian text or an English translation.

Yep, I remember those discussion from over 10 years ago and never saw the real contents either. You only get the infamous standard statement: “The rules for property ownership by foreign nationals in Batam fall under Decree No 068/ KPTS/KA/III/1999. This regulations states that foreign ...”

 

[Daniel50]

@Daniel50 : Yes, you're starting to figure me out . The chances of not ending up in Solo are somewhat slim, but still open to suggestion. As the old saying goes, "men have goals, and women have agendas". My wife's agenda usually has the advantage. The problem with Solo and really Indonesia in general is every alternative for buying property has a trade-off, and all of them are unacceptable to either one or both of us. Our only real alternative is to rent, and the rental situation in Solo is not that great - at least in my opinion. Believe me, I have definitely scoped out Bali, and looked at villas with varying lease terms in Canggu, Jimbaran, Sanur, and Ubud. I have a couple real estate agents in Denpasar eagerly awaiting us to make our return there.

Hahaha........Oh well a person can always make changes along the way. We have decided Bali will work best for both of us: closer to her family, lots of services, some nature and English is used more. It has definitely been an ongoing process. We were there when Ahok was getting roasted and the large demos etc..My wife thought about becoming Canadian but decided to maintain her Indonesian citizenship. We came back to outside of Vancouver and bought a condo. I emailed a realtor yesterday about selling. The market has flattened out some but we may list it this fall or in the spring and move back to Bali. I applied for a job in another Province had an interview and then declined to proceed as it would be a similar situation I retired from. It would pay pretty well, by my standards anyway, but then what......have more money later.... we need a certain amount of money but not really worth the loss of time, and added stress, for me to have more money.
But as far as property in Batam I have no idea. Oh we decided we will rent in Bali, this too has fluctuated over time.

 

[Ruserious]

That is a rather common (mis)conception. The place is unsafe, and more for rich people from Singapore for weekend golf. Trust me, if you can live on Java, you could live there.

In all my years in Indonesia i have rarely heard of crime issues except from Batam. I have visited and worked there many times and always personally found it very rough around the edges. Also work wise i found the government departments there to be more corrupt than in other parts of Indonesia. There are nicer parts of the island and being a short ferry from Singapore is great but overall i think there are much nicer places in Indonesia.

 

[jstar]

In all my years in Indonesia i have rarely heard of crime issues except from Batam.

My point exactly.

In al my years blah blah blah I have only personally encountered crimes in Medan and Jakarta. Not on places I have stayed long periods as Bali, not in North Sulawesi, not in Batam, not in Tangerang, .... But I could write a book about things that have happened to friends and family in law in all places.

Of course there are nicer parts of the islands but I don’t want to live in NTT or South Molucca.

 

[waarmstrong]

Jakarta has a long list of problems, but street crime, not so much. Still, we keep the gate locked.

 

[jstar]

Huge amount of street crime in JKT. Take as woman a bajaj or an ojek and hold a purse...

 

[waarmstrong]

Yes, but that is an Indonesia problem, maybe even an Asia or world problem; Jakarta does not stand out as worse than other population centers.

 

[waarmstrong]

Huge amount of street crime in JKT. Take as woman a bajaj or an ojek and hold a purse...

I suppose its possible, but I am wondering if your authoritative source is creditable given that Bajaj are banned in many parts of the city and seem to be a disappearing mode of transport. Or perhaps your opinion is a personal generalization stemming from a sensationalized news feature or Youtube video.

Credible street crime statistic are hard to come by, but as I said, Jakarta does not stand out as having a "huge" problem that sets it apart from other big cities.
https://www.osac.gov/pages/ContentReportDetails.aspx?cid=21979
https://www.numbeo.com/crime/in/Jakarta