Nuvasa Bay Batam.
Luxury Residential @ Batam




In this section, we have compiled for your reference, the answers to Frequently Asked Questions (FAQ) about investing in Nuvasa Bay and in Indonesia.

1. What is a Foreign Direct Investment Company, and why do I need it to invest in Indonesia?
Foreigners investing in Indonesia will need
to do so through a Foreign Direct Investment
- or Penanaman Modal Asing (PMA) - Company. You can apply for
a PMA Company license through the country’s investment service agency, Badan Koordinasi Penanaman Modal (BKPM).
BKPM has representative offices in all of Indonesia’s provincial capitals, as well as
in countries such as Australia, Japan, Taiwan, Singapore, UK and USA. BKPM also operates
a National Single Window for Investment (NSWi) website, which allows investors to apply for investment licences online at

2. What are the criteria for establishing a Foreign Direct Investment Company?
You can apply to set up a PMA Company as long as there is a consensual agreement between two or more parties to conduct a business activity.
As part of the Indonesian Government’s attempts to attract foreign investment into the country, there are no restrictions on foreign ownership when investing in a Limited Liability Company - i.e. all the parties in the PMA Company can be non-resident individuals or entities.
However, certain industries in the country are earmarked for local participation, and foreign investors may face certain ownership restrictions. These industries are identified in the Negative List of Investment (Daftar Negatif Investasi, or DNI) as detailed in Keputusan Presiden (Presiden Regulation) No. 36/2010.


1. What are the procedures for land ownership transfer?
Ownership transfers of HGB and HP properties have to be registered with the Land Office. Hak Sewa can be given or transferred to a third party without lodging it with the Land Office. The agreement may be officiated at a Notary Public Office for a greater degree of legal protection.
Akte Pendirian Perusahaan Berita Negara
Nomor Pokok Wajib Pajak

Here are the documents which a Property Buyer have to submit to apply for ijin Peralihan Hak (IPH), or Land Transfer Permit:
Akte Pendirian Perusahaan
(Article of Association)
Berita Negara (official gazette) from the Ministry of Justice
Endorsement letter from Investment Coordinating Board
Nomor Pokok Wajib Pajak
(NPWP, tax file number)
Identity cards of the investment company’s
board commissioners and directors Declaration of land owned
Declaration of land use with detailed plan Power of attorney given to Sinarmasland’s Representative to apply for the transfer Full payment of Bea Perolehan Hak atas Tanah dan / atau Bangunan (BPHTB), a levy imposed for acquiring rights in land and building.

2. What are the applicable costs of property ownership or transfers?
Cost of holding a property:
Pajak Bumi dan Bangunan (PBB), or Land and Building Tax - 0.5% of taxable value (taxable value is set at :
(i) 20% (ii) 40%
Renewal / Extension fees for HGB and Hak Pakai properties
Sellers of properties have to pay:
Income Tax on Sales of Land and / or Building- at 5% of the transaction value

Buyers of properties have to pay:
Land transfer duty (BPHTB) - of 5% of the transaction
Value (for properties valued at more than IDR 60 million)
VAT and Luxury Sales Tax in Batam Area (Free Trade Zone)
Notary Public fee - approximately 0.5% of the transaction value
Stamp duty - IDR 6,000 Rental of Land and / or Building Lease of land and building is subject to 10 % tax

3. What are the procedures for property leases?
Lease agreements for a property between two parties do not need to be lodged with the Land Office, but may be officiated at a Notary Public Office for a greater degree of legal protection.
FAQ Rating: 4.9 Posted By: Julius
Nuvasa Bay Batam Nuvasa Bay Batam Author

1 comment:

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