HP title has no collateral value


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Posted by SurfAddict on Monday, 27. February 2006 at 19:08 Bali Time:

In Reply to: Hak Pakai is a Land Title posted by Balivillas staff on Monday, 27. February 2006 at 18:16 Bali Time:


Thanks for your reply, but how does that sit with this from Gary Dean, December 2003

Reference: http://www.okusi.net/garydean/works/landlaw.html

Right to Use Title (HP or Hak Pakai, Article 41-43)

The Right of Use on Land (HP) is the right to use land for any purpose for a period of 25 years, and can be extended for another 20 years. This type of title should not be confused with a lease contract or sharecropping agreement.

Foreign residents of Indonesia and Indonesian legal entities (including PMA companies) may hold HP titles. HP title has no collateral value to the owners and is not transferable.

I would like to invest in Bali but am concerned about being able to buy and sell my property as I could in most western countries.

Cheers,
Dave




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