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Did you know that once an Indonesian citizen marries a foreigner, they can lose the right to buy or sell freehold property or land in Indonesia?

This regulation dates back to the 1974 Marriage Law which states that an Indonesian person cannot retain all assets obtained prior to marriage or assets inherited during the marriage.

Indonesian citizens, or Warga Negara Indonesia (WNI) who enter into mixed marriages with foreign nationals are not allowed by law to own a Hak Milik (Freehold) property or land as it will become a joint property asset.

Joint property asset in this instance means property purchased by the husband or the wife throughout their marriage.

For example, once married, land ownership rights owned by the Indonesian citizen will become a joint property asset also owned by the foreign citizen.

As you know by now, foreigners are not allowed to own property in Indonesia under the Hak Milik (Freehold) title; this regulation has been put in place to avoid any foreign spouse from owning Indonesian property through marriage.

To avoid complications and according to Indonesian law, mixed marriage couples are encouraged to create a formal prenuptial agreement with a certified Notary.

The prenuptial agreement will allow the Indonesian spouse to retain his or her right to buy/sell freehold assets whether land or property.

It will also state that the foreign spouse will have no claims or rights over any property that the Indonesian spouse owns.

The prenuptial agreement should be drawn up and completed immediately after marriage. Just head to a trusted Notary who will prepare and sign the document for you for a fee.

If there is no prenuptial agreement, then the Indonesian citizen would have to release his or her property through sale or grant.

If this does not happen within one year of marriage, then the land rights will fall into the hands of the state.

You can also explore the possibilities of having a postnuptial agreement if you do not have a prenuptial agreement in place.

Do bear in mind though, that any land or property that the Indonesian citizen holds before marriage is unaffected by the marriage and that a citizen is still able to inherit land throughout the marriage.

Need more information on prenuptial or postnuptial agreements in mixed marriages in Indonesia? We would recommend that you approach a trusted law firm or a reputable notary of your choice.

Remember that Bali Coconuts Living is in no way a legal entity and that we do not provide legal advice or representation.

We would recommend that you seek professional counsel with a Notary or a law firm here in Indonesia if you seek further advice on the matter of joint property assets, prenuptial agreements, and postnuptial agreements.

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