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Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

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++62 361 286 284

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1-800-506-8633

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Bali News by Bali Update
BALI UPDATE #1014 - 08 February 2016

IN THIS UPDATE


Bali Responds to Worldwide Health Emergency
Bali Steps Up Screening at Island's Gateways to Detect Travellers Afflicted with Zika Virus

Bali Governor Made Mangku Pastika has announced that he has instructed all components of the Island’s Health Authority located in every regency and municipality to be on the alert to the threat of the Zika virus and Dengue Fever.

Quoted by Beritadewata.com, Governor Pastika said on Thursday, February 4, 2016, “I have already instructed the relevant agencies to take anticipative steps to minimize the spread of the Zika virus and dengue fever in Bali.” The Governor warned that Bali must act quickly in detecting the two diseases (Dengue fever and Zika) and preventing contagion.

Meanwhile, the chief of the Bali Provincial Health Service, Ketut Suarjaya, explained that as a part of Asia, Bali is also a habitat for the Aedes Aegypti mosquito that spreads the Zika virus.

Suarjaya noted that the Zika virus is now ranked as an international health emergency causing worldwide concern. As a result, all surveillance strategies must be put into place to quickly identify those infected with the disease. In Bali, this has caused health checkpoints to be established at the Port of Gilimanuk, the Port of Padangbai and the Bali International Airport. “We hope that thermo scanners will be put in place at all gateways to Bali to identify travelers with a temperature above 38 degrees Celsius who can be separated out for closer health examination," said Suarjaya.

The head of Bali Health Service added that, thus far, no confirmed cases of the Zika virus have been identified in Bali, a situation Suarjaya hopes will remain unchanged.


Fitting in When Working in Bali
Foreign Workers in Bali Called Upon to Embrace Local Culture and Tradition

Kompas.com reports that the Province of Bali is reminding its league of foreign workers to take concrete steps to understand the Island’s cultures in order to reduce the potential for conflict with the local community.

Speaking at a conference in Bali on Wednesday, February 3, 2016, Dewa Putu Beratha, the head of the Provincial Culture Office, said: “Clearly, (the foreign workers) must have a general understanding of Balinese culture, especially areas of great sensitivity for the people of Bali, such as reverence for sacred areas, cultural balance and such. If these are violated, conflict could result because public sensibilities were outraged.”

Because of this, Beratha insists that foreigners working in Bali should have at least a macro understanding of Balinese traditions, local wisdom and those values and mores held precious by the Balinese. He said that foreigners must be explicitly told which things are permitted and disallowed for foreigners living in Bali. “This needs to be done so they (the foreigners), don’t just wander into areas where religious ritual is being performed,” he said, while speaking at a seminar on socializing an understanding of Balinese culture to foreign workers in Bali.

Joining the discussion, the head of the Manpower and Transmigration Office for Bali, I Gusti Agung Sudarsana, agreed that such socialization is needed to reduce the chance of conflicts with Bali’s local culture. Adding, “We will try that at least once a year to hold meetings such as this to make sure foreign workers understand Balinese culture.”

Sudarsana said rules of good etiquette vary between the West and Bali, such as local rules that mandates the avoidance of strong language.

The head of Manpower for Bali said that to date no efforts have been made to educate foreign workers on Balinese culture and custom, despite the fact that the requirement to understand Balinese culture forms a requirement for issuing working permits issued to foreigners.

Through the end of December 2015, Bali had 1,853 registered foreign workers in Bali employed in business, hotel, restaurant and other economic sectors.


Gathering in High Places in Bali
International Hang Gliding and Paragliding Event Planned for Bali October 10-16, 2016

Bali Governor Made Mangku Pastika has expressed his appreciation that Bali has been chosen to host an international conference on Hang Gliding and Paragliding conference of the Fédération Aéronautique Internationale (FAI) October 10-16, 2016.

As reported by Kompas.com, Pastika expressed his appreciation during a visit to his office the head of aerial sports from the Indonesian Air Force, Air Marshal Nazirsyah, in the company of a committee from FAI who reported on preparations for the coming conference.

The Governor pledged support from the Provincial administration for the coming conference.

Narzirsyah, who is also chairman of the Indonesian Aero Sport Federation (FASI), told the Governor that Bali was selected to host the FAI conference because the region was judged to be safe, interesting and known the world wide.

The deputy secretary general of FASI, Chepy R. Nasution, told the Governor that the October conference would also be enjoyed by the general public with several public attractions designed for the their enjoyment. These activities will include para-gliding and flying tricycles.

120 paragliders and hang gliders are expected to participate in the Bali event with a total of 200-300 conference participants slated to visit travel to Bali.

The stunt flight aerobatic “Team Jupiter” from the Indonesian Air Force will also make a special appearance in the skies over Bali in conjunction with the FAI conference.


Chinese Holiday Rush in Bali
Bali Airport Expected to Handle 200 Additional Flights Over a 45-Day Chinese New Year Period

In order to handle the largest-ever influx of Chinese tourists to Bali, Ngurah Rai International Airport is preparing to handle 200 additional charters and special flights over the Chinese New Year holiday period.

Quoted by Beritabali.com, Trikora Harjo, the general manager of PT Angkasa Pura I, the operating authority of Bali’s airport, said on Friday, February 5, 2016, “through the end of February there have been requests for 200 (additional) flights,”

Trikora said that 100 flights from China to Bali have already arrived in Bali carrying between 5,000 – 6,000 tourists.

“Dating from the middle of January they (Chinese tourists) have begun arriving and will continue to do so until the end of February. We have put in place a number of special preparations to handle these flights,” Trikora said.

Among the preparations for the extra flights are measures of tightened security and a program of Balinese welcoming dances for visitors coming to the Island to celebrate the Lunar New Year.

Trikora said that welcome drinks will be offered to arriving passengers off flights from China and language facilitators will be on hand to ensure a smooth welcome.

Special travelers aid desks will be in operation during the busy holiday period.


Bali as a Center for Distribution
Sophisticated Logistic Center Opened by Bali’s Airport by Angkasa Pura Logistik

The government-owned management company for the Bali Airport, PT Angkasa Pura, has synergized two of its subsidiaries PT Angkasa Pura Properti and PT Angkasa Pura Logistik by opening an international logistic and storage center at Ngurah Rai International Airport.

Beritabali.com quotes the president director of Angkasa Pura I, Sulistyo Wimbo Hardjito, saying, “The Bali Logistics Park is hoped to facilitate the flow of goods and stimulate the logistics sector and tourism in Bali.”

The Bali Logistics Park was built by Angkasa Pura Property based on a Bali tropical design. 1.6 hectares of land with a building covering 7,200 square meters comprised of 8 buildings – each measuring 960 square meters. Each building has a mezzanine area covering 150 square meters.

Irwan Garnia, the CEO of PT Angkasa Pura Logistik said, “Bali Logistic Park is now the leading storage center in Indonesia.” Irwan said he hope businesses will now be confident to expand their distribution services in Bali. Plans are underway to soon open another logistics center in Surabaya.


Not Cleared for Take Off or Landings
Heavy Rains Close Bali’s Airport for 3-Hours on Wednesday, February 3, 2016

Heavy rains and the resulting flash flooding in wide areas of South Bali on Wednesday, February 3, 2016 caused the Island’s Ngurah Rai International Airport to close for 1.5 hours.

As reported by Beritabali.com, Trikora Harjo, the general manager of the airport authority PT Angkasa Pura I, confirmed the forced close down from 11:30 am until 1:00 pm on Wednesday.

Heavy rains reduce forward visibility at one point to just 300 meters, below minimum levels needed for safe landings and take offs. While rains continued throughout the day, visibility improved to 2,000 meters after a period of three hours allowing flight operations to recommence.


Dealing with Threats of Terror
Regent of Ubud Bali Says Public Must be on the Alert for Terror

The Regent of Gianyar Anak Agung Bharata recently convened a meeting of district chiefs and community leaders in Gianyar to discuss precautions and preparedness in the face of threats of from the Islamic State of ISIS.

As reported by Beritabali.com, Bharata said information he has received from police and intelligence sources are that Bali represents a target for ISIS who wish to stage “concerts” on the Island – a perverse euphuism used by the terror group for “acts of terror.” Because of this, the Regent of Gianyar called for these threats to be met with a high level of preparedness. Bharata warned that such threats couldn’t be ignored, as the terrorists have proven they are prepared to attack the public, such as the terrorist act in Jakarta on January 14, 2016.

The Regent said that the targets sought by the terrorists include shopping malls, places of worship and well-known tourism objects. At the same time, he warned that terrorists can also devise new targets, outside normal expectations. Because of this, preparations must be put in place that are wide-ranging.

The head of the Regency said that he hoped the public was developing a greater awareness of the potential threat of terrorism brought by foreign visitors. Foreign visitors must be reported from hotels, villas and private residences to the local police once every 24 hours. Bharata called on the public to be vigilant in reporting all guests, foreign and domestic, visiting the Gianyar area.


A Passion for Fresh, Healthful Ingredients
Stefano Attardi Named Executive Chef of Ritz-Carlton Bali

The Ritz-Carlton, Bali has announced the appointment of Stefano Attardi as the resort’s executive chef.

A Ritz-Carlton Veteran, Chef Stefano brings nearly 15 years of culinary experience acquired during culinary assignments around the world.

Originally from Naples, Italy, he has held previous positions in Switzerland, Florida, and Italy, as well as at The Ritz-Carlton, Grand Cayman Islands. Prior to joining The Ritz-Carlton, Bali, Stefano served as the executive sous chef at Hotel Arts Barcelona, where he developed a strong foundation in banquets and catering.

As executive chef, Stefano oversees the resort’s six dining venues, including signature Indonesian restaurant – Bejana, as well as Raku Japanese lounge and bar, Senses all-day dining restaurant, The Ritz-Carlton Lounge & Bar known for its afternoon tea, The Beach Grill which has a fresh menu of seafood and grilled dishes, and Breezes Tapas Lounge.

Chef Stefano also oversees the resort’s in-room dining and banquets, catering events ranging in size from small meeting to large weddings of more than 500 people.

On his move to Bali, Chef Stefano said, “I love cooking with fresh ingredients and the seafood that is available all year round here in Bali is among the best in the world.” At The Ritz-Carlton, Bali, Chef Stefano shared that he looks forward to exploring his love of Asian food, especially Indonesian cuisine. Adding, “I believe in staying true to the country’s cuisine, never confusing flavors and am excited to provide guests with the best that Bali has to offer.”

A firm believer in living a healthy lifestyle, Chef Stefano also created the menus for the property’s recently launched Healthy Meeting packages. Designed specifically for the health-conscious business professional, the satisfying, wholesome and low-calorie dishes provide energy and nourishment for guests at meetings, conferences and event. Healthy Meeting dishes include items such as Chilled Raw Tomato Soup with Lemongrass Spikes, Grilled Tuna or Paprika Timbale and Watermelon and Ginger Granita with Pineapple Carpaccio.

Book a Room at the Ritz-Carlton, Bali



Another Property Deal Gone Sour
Australian Eric Bevan Gillet Arrested for Property Fraud in Bali

Bali Police have taken into custody an Australian national, Eric Bevan Gillet, who was sought by police since December 18, 2015 in connection with a case of property fraud said by police to amount to more than ten billion rupiahs.

As reported by Beritabali.com, a spokesperson for the Bali Police, Sri Harmiti, said the 55-year-old Australian was involved in a property scheme dating from 2013 at which time he offered an “off-the-plan” deal at Xanadu Villa in Seminyak to I Ketut Sumadi and Tommy Comeford.

“The accused offered a villa to his victims comprised of one packet of property comprisING of nine villas and apartments priced at Rp. 15.58 billion,” said Harmiti on Friday, February 5, 2016.

Sumadi and Harmiti took up Gillet’s offered and transferred money to his account.

“The incident took place on October 7, 2013, but was only reported by the victims on December 1, 2014. The victims already transferred Rp. 6.7 billion,” said Sri.

When Gillet was unable to present requested land certificates and building permits, the two victims became increasingly suspicious. When it became difficult to even make contact with the Australian, their concerns escalated further.

Police say the case against Gillet was complete and ready to go to trial in December when the suspect suddenly disappeared and was placed on the “most wanted” list of the Bali police. He was eventually arrested by police at the Xanadu Lifestyle Resort in Seminyak.

Eric Gillet is being charged under sections 372 and 378 of the criminal code WITH fraud and financial malfeasance, punishable each by 4 years in prison and fines of Rp. 900 million.

Now under arrest, Gillet remains in police custody awaiting trial.


Slow Wheels of Justice
Australian to Face Trial for Criminal Assault Committed in 2013

9news.com.au reports that an Australian, Scott Dobson, of Western Australia will soon go on trial for a 2013 attack on the Canadian Kenneth James Wickes, the manager of the Sky Garden Night Spot in Kuta.

The 52-year-old Western Australian, if found guilty of criminal assault, could potentially be sent to prison for five years.

Dobson is accused of visiting the Sky Garden on September 27, 2013 with a group of friends where they ordered a quantity of drinks and then refused to pay. When Wickes demanded payment from the group who had already been reported by staff for rude and aggressive behavior, he was reportedly attacked and assaulted by Dobson.

In the altercation Wickes suffers a black eye, wounds to mouth and a broken tooth.

The attack was caught on a CCTV camera.

Dobson remains in police custody awaiting his trial date.


Tiger Shows it Stripes
TigerAir Reveals the Look of Planes to be Operated on Oz to Bali flights.

Tigerair Australia is slowly unveiling its fleet of three reconditioned Virgin Australia 737-800s that will fly to Bali beginning in March 2016.

The planes will fly between Adelaide and Bali, Melbourne and Bali, and Perth and Bali has been repainted in the Tigerair livery and new seating installed.
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Parent Virgin Australia owns the Boeing 737s that Tigerair will fly to Bali with cockpit crew on secondment from Virgin to the low-cost-no-frill subsidiary.

The planes will be configured for 180 all-economy seats with 34-inch pitch for those seats in the cabin’s front and 31-inch pitch for the seat at the back. Two exit rows of seat at the emergency exit rows positioned over the wings will have a 39-inch pitch.
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No frills pricing means that passengers can opt for free or paid wireless in-flight entertainment. Cold food and drinks can be purchased on board or booked and paid for prior to departure.

Initially three reconditioned Boeing 737s will be flown on the TigerAir route with new cabin crew being trained to handle the new flight schedules.


Pass the Popcorn!
10th BALINALE Bali Film Festival September 24-30, 2016

The BALINALE – the Bali Film Festival returns for its tenth edition September 24-30, 2016 headquartered at its new home venue of Cinemaxx Lippo Mall Kuta to showcase both local and international films and those who make them.

Organizers reveal that a number of pre-festival activities will serve as prelude to an expanded main line-up that includes free daily performances and screenings, children’s activities, student screenings, nationwide film competition and workshops.

During the 10th BALINALE a nightly open-air cinema – known in Indonesian as “layar tancap” will entertain the local community and festival participants.

As part of BALINALE’s 10th anniversary celebration the theme of “No Boundaries” has been adopted. A formal call for submissions to be screened at the event will be launched on February 29th.

Indonesian filmmakers will see the entry fee waived courtesy of the Festival’s Submission Grant program supported by the Bali Film Festival.

The festival seeks to continue to increase Bali’s recognition as a film and arts destination and Indonesia as a filmmaker’s preferred location. Acknowledged globally as a leading tourism promoter of Bali and boasting the country’s unique destinations, world class facilities, services & infrastructure, the festival acts as a strong platform to present Indonesian culture, quality handicrafts, products and talented individuals to the world.

BALINALE Film Festival Website


Drawing Lines in the Sand
Villagers Issue Deadline Ultimatum of March 20, 2016 to Hotel InterContinental Canggu

Metrobali.com reports that hundreds of villages from the traditional community of Canggu in South Kuta have marched on the location of the Hotel InterContinental Canggu site in their community in a prolonged conflict between the hotel’s owner and its Balinese neighbors.

The latest protests took place on Sunday, January 31, 2016, when the large group dressed in traditional garb once again demanded the hotel’s developer honors a number of unkept promises, including a pledge to open beach access to a community temple.

Carrying banners and posters while striking gongs, the village members issued a deadline to the hotel of March 20, 2016 to honor both its legal obligations and promises made to the surrounding community. The demonstrators threatened that it the deadline comes and goes without the Hotel InterContinental Canggu taking remedial action, then they will forcibly demolish the illegal structures.

A representative of the Canggu Banjar, Wayan Winaya, said that earlier agreements made with hotel have been dishonored. “The Hotel InterContinental investor is only a liar. We have been lied to. We have been both tolerant and patient,’ said Winaya.

The five demands of the Canggu traditional village are for the Hotel InterContinental Canggu to dismantle a breakwater it has installed along the shoreline; surrender the public right-of-way along the beach front to permit access to a village temple; to re-measure and define property boundaries; to restore existing roadways that allow free views of the oceanfront; and demolish drainage canals that bisect roadways.

Winaya finished, saying: “Basically we want the five demands of the local community quickly satisfied. Especially, access to the temple. If this doesn’t happen the people will rise up again.”

Related Articles

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The Beach Belongs to Everyone


London Calling
Garuda Indonesia to Fly to London from Jakarta Starting March 31, 2016

Garuda Indonesia will start its long-awaiting non-stop service connecting Jakarta and London Heathrow on March 31, 2016.

The non-stop service will fly five times a week, departing every day except Monday and Fridays from Jakarta. The return flight from London will have an intermediate stop in Singapore.

The new Garuda Indonesia service will be operated with Boeing 777-300 ER aircraft configured into three class of service.

Arrival figures to Bali show the UK market to among the strongest performing European markets to the Island.


Half a World is Now Just One Flight Away
United Airlines to Introduce 15-Hour Non-Stop San Francisco to Singapore in June 2016

Connections between the Continental USA and Southeast Asia will be enhanced when United Airlines starts a new 15-hour non-stop flight from San Francisco to Singapore in June 2016.

When United Airlines start flying the new service, it will historically represent the first-ever direct connection between San Francisco and Singapore and the only nonstop flight from any U.S. city to the Island Republic.

United will operate a Boeing 787-9 Dreamliner on the route that will, at 8,446 miles, become the longest route flown by any U.S. Airline.

With the commencement of the new service United will discontinue it s current Singapore to Nagaya flight service.

Only a short flight from Bali, Singapore remains an important secondary air gateway to Bali.


Interview: Rainy Hendriany – Foreign Ownership Update
Foreign Property Ownership in Indonesia – One Step Forward and Two Steps Back?

Recently announced changes in the rules governing foreign ownership of property in Indonesia, may have raised more questions than it has answered. In our continuing effort to decipher what is a complicated legal situation, Bali Update has once again sought out the highly respected Sanur-Bali-based Notary Rainy Hendriany to understand challenges facing foreigners involve in property transactions in Indonesia.

Bali Update Interview with Rainy Hendriany

Bali Update: Rainy. thanks again for your time. Your willingness to share your time and expertise on property law is much appreciated. In the light of recently announced “changes” in the property sector has anything really changed with regard to ownership of property in Indonesia by foreigners?

RH: Actually, the short answer is no, not really, although there has been a lot of noise and, I might add, misinformation in the foreign community. There has been an evolution in the Regulatory environment and some further clarity, but not a revolution. For context, I would like to refer back to the earlier discussions we had. Despite all the noise since we last spoke, actually the vast majority of my inputs in these earlier interviews remain completely valid today.

Bali Update: Why do you think that is the case?

RH: The ownership of property by foreigners in Indonesia is a very complex matter. You must remember that Indonesia only became an Independent Nation in 1945. Prior to that, Indonesia was under the control of the Dutch for over 350 years. Since independence, Indonesians have been determined to maintain integrity over their own land, defiantly refusing to ever again surrender their sovereignty to any foreign interests.

When looking at what has happened to property prices in major world cities like London, Sydney, New York and Vancouver where unrestricted foreign investment was allowed, escalating to the point that local people are excluded from buying property in their own country, I think that this restrictive policy approach has some merit.

Bali Update: But there has been a lot of talk in the media over the last several years about an “Opening Up” the Indonesian property market to foreign investment?

RH: Yes, there has, but this ‘talk’ has been mostly advanced by the large property developers in Jakarta, most of whom are not that politically well connected and who obviously have a vested interest in selling property. Let me come back to property titles for apartments and why that doesn’t help foreigners much, a little later.

On the other side of this debate, there has been a very strong reaction against such liberalization over the years by the so-called “Nationalists”, who are of the view that The Indonesian Constitution and The Basic Agrarian law of 1960 are fundamental governing principles, upon which the Republic was established and which cannot be challenged. Without going into detail here, past attempts to open up property ownership to foreigners have been appealed by the Nationalist factions all the way to the Supreme and Constitutional Courts - the highest Courts in Indonesia, which thus far always ruled against any attempt to expand foreign ownership of Indonesian property, especially landed property.

Bali Update: Is it fair to say that the new rumors of greater ease of foreign property ownership in Indonesia have raised false expectations among aspiring foreign owners?

RH: I think there are several issues. Firstly, in Bali, there have been several high profile cases involving disputes between so-called foreign “Beneficial Owners” of landed property and so-called “Indonesian Nominee Owners” of properties. In fact, Indonesian law does NOT acknowledge the beneficial ownership of landed property.

Secondly, the Indonesian media, especially the English-speaking Indonesian media, tend to reflect the interests of foreign investors without a proper grounding in current practice and substantiated fact.

Bali Update: Moving to the legal issues, could you share a simple summary of what has changed and what has not changed?

RH: That’s not easy, but I will do my best. Although to do so in full, it would be best if your readers took the time to scan my earlier inputs. (Editor Note: See related articles below.)

Several years ago, primarily the English media in Indonesia started to publish that an intention existed to liberalize property ownership laws in Indonesia. There were hyped expectations; never realistic in my view that ownership of properties by foreigners would be extended to include Freehold properties.

Bali Update: What went wrong?

RH: Well what went wrong is a lack of understanding, or perhaps misinterpretation, of Indonesian law.

The Indonesian Constitution and the “Basic Agrarian Law” (Law 5/1960) prevents foreigners from owning landed property in Indonesia. The Basic Agrarian Law established a range of land titles and a hierarchy of land titles that creates the basis for many legal principles governing the control of property.

As of that time, foreigners were only able to lease land (”Hak Sewa”) or control land under HGB title (The right to build and use for commercial purposes) held by a Registered Indonesian Legal Entity, both Indonesian or foreign owned.

I should add here that it is not possible to establish a foreign investment (PMA) Company for the sole purpose of owning a landed property.

Under these basic legal principles, foreigners were only able to lease land as individuals. It wasn’t until 1965 that the “Right of Use Regulation”, (Government Regulation 40/1965) was introduced that regulated the use of Hak Pakai (The Right of Use) title. In the same year the “Foreign Ownership Regulation” (Government Regulation 41/1965) was introduced to regulate foreign land.

The Foreign Ownership Regulation clarified the availability of Hak Pakai title, with certain restrictions, for a single residential property to a foreigner who is legally resident in Indonesia (KITAS Visa or higher) to assist that foreigner in “Contributing to the Development of the Nation”. Under the 1965 Regulation, Hak Pakai title could be granted to a qualified foreigner for an initial period of 25 years that could be extended for a further period of 20 years. The Regulation was silent regarding Rights of Inheritance.

Since then, there have been no significant changes.

Bali Update: Which brings us to the recent new regulations.

RH: Yes, that’s right. “The (New) Foreign Ownership Regulation” (Government Regulation 103/2015) was introduced to replace the 1965 Foreign Ownership Regulation. Against high expectations, this Regulation is not revolutionary but more evolutionary in that it merely clarifies the rules for foreign property ownership.

Hak Pakai Title for a single residential property by a foreigner legally resident in Indonesia (KITAS Visa or higher) is now available for an initial duration of 30 years and can be extended for a further 20 years then renewed for another 30 years, for total of 80 years. In this respect, the Regulation has brought the terms and duration of Hak Pakai title into line with existing terms and duration of HGB title. The new Regulation also clarifies that a qualified heir who is also legally resident in Indonesia can inherit a Hak Pakai held by a foreigner. The Regulation and other prevailing law provide that when the foreign holder of a Hak Pakai title leaves Indonesia and so is no longer legally resident; the property must be transferred to a qualified party within a period of 12 months of departure. If not, in simple terms, the State has the right to auction the property and transfer the proceeds to the foreign owner.

Incidentally, because Hak Pakai is granted to a foreigner as a single residential property, it is not possible to use the property for commercial purposes. So, for instance, it would not be possible to obtain the necessary Licenses and Permits to rent out the property during periods in which the foreign owner may not be resident.

Foreigners, even non-resident foreigners, may still enter into leasehold of limited duration in broad recognition of the hierarchy of land titles and their duration as set forth in the Basic Agrarian law.

Foreigners, even if legally resident in Indonesia, may still not own landed property (Freehold) and the beneficial ownership of landed property using a nominee remain illegal.

Bali Update: Please clarify: Is Hak Pakai just another form of leasehold?

RH: No, that is a common misunderstanding. Hak Pakai title is a type of ownership title, which, as set forth in the Basic Agrarian Law, is a higher title than leasehold. It can be sold to another qualified foreigner or an Indonesian citizen, although as a practical matter, most Indonesians will not buy a Hak Pakai title for a number of reasons.

Bali Update: What types of property does the new Hak Pakai title apply to?

RH: It applies to a residential landed property such as a house and also to apartments, but only an apartment in a development, which is built over Hak Pakai title. However, most apartments - or more correctly, condominiums - developments in Indonesia provide owners with strata title over HGB land, which is only available to Registered Legal Entities and Indonesian citizens.

Bali Update: But, I read somewhere recently that foreigners were allowed to buy “High End” Apartments of over a certain size and value?

RH: That is more misinformation. In the extensive discussions that took place over the past few years within the context of the ‘Reform’ of foreign property ownership, this is something that was proposed during the discussion phase but was NOT implemented in the new regulation, or any other regulation/law that I am aware of.

The problem with the foreign ownership of even high-end apartments was one of title. As I just mentioned, essentially all apartment developments in Indonesia are built on HGB land title. So allowing even High End Apartments to be acquired by foreigners would have required either a change in Law to create an entirely new “Hybrid” land title or allowing foreigners to acquire HGB title via strata title. This has seemingly been placed in the ‘Too difficult’ File. Ultimately, that was ‘A bridge too far’ for the Nationalist faction which had a “Red Line” on any land title liberalization for foreigners. This is ultimately why the new ‘Reform Agenda’ failed and the “Nationalists” still remain firmly in control.

Bali Update: What about the property rights of Indonesians who are married to Foreigners?

RH: Don’t get me started! That’s a whole different subject that would take up another complete discussion. And some may know, this also once applied to me until my foreign husband became an Indonesian citizen. Perhaps we should revisit this subject during future discussion?

Bali Update: Any closing thoughts?

RH: Not really much to add except that the comments I have made here are for general interest and discussion purposes and are NOT intended to be specific legal advice. As in the past, it remains very important that you consult a qualified Notary/PPAT in any Indonesian property transaction.

Bali Update: Thanks for the generous gift of your time

Editor's Note: Rainy maintains a Notarial practice in Sanur which specializes in advising foreign investors. Telephone  +62 (0)811 388 320.


Related Articles

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Interview: Rainy Hendriany - Bali Property Ownership by Foreigners

Interview: Rainy Hendriany - This Land is My Land, This Land is Your Land

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Editorial: Governor Pastika: Time to call a 'Time Out'

Editorial: Bali Real Estate: Boom or Bust?


Reclaiming Sanity
Tourism Experts Warn Reclamation of Benoa Bay will Only Worsen Critical Over-Supply of Hotel Rooms in Bali

The chairman of The Indonesian Tourism Experts Organization (ICPI-Bali), Putu Anom has said that plans to reclaim and develop Benoa Bay will make an already critical oversupply of hotel room affecting the island even worse.

Quoted by Bisnis Bali, Anom said the southern regency of Badung already has 95,000 rooms that have resulted in a price war among Bali’s major hotels.

Continuing, Anom said that the proposed reclamation of Benoa Bay and the resulting addition of thousands of more hotel rooms and apartments will only serve to worsen the financial condition of local businesses, add to existing traffic congestion and stimulate the inflow of migrants from outside Bali into the Regency. Adding, “the problems for  tourism resulting from an influx of new workers coming to Bali will be made all the worse.”

Anom said Bali’s current population of 4 million with enormous demands for water and electrical power. An even larger population base will rob Bali of the peace and serenity that draws people to vacation on the Island.

He said the proposed reclamation of Benoa Bay would also adversely affect local water sport operators and local fishing communities.

For these reasons, he explained, there is widespread opposition to the Benoa Bay reclamation project that was deemed non-viable in a high level review undertaken by Udayana University in 2013.

In closing, Putu Anom called on all elected officials, political leaders, academics, religious figures and Bali businesses to join rank in opposing the reclamation of Benoa Bay. Adding, it is the responsibility of or the President and the leaders of all political parties to take clear steps to save Bali.


The Evil of Advertising
Denpasar Government Begins to Dismantle Roadside Advertising for Cigarettes

The Enforcement Agency for the Municipality of Denpasar (Satpol PP Kota Denpasar) removed a large billboard on Jalan By Pass Ngurah Rai in the Suwung area.

The billboard contained an advertisement for Sampoerna Cigarettes.

Such public advertising for cigarettes is expressly forbidden by a Mayoral Ordinance No. 14 of 2013.

IB Alit Wiradana, the head of Satpol PP Kota Denpasar promised that within the coming days all roadside advertising found in Bali’s capital for cigarettes would be forcibly removed by his officers.

The move to enforcement by the Municipality of Denpasar represents a reversal of past policies that readily accepted electronic advertising from cigarette manufacturers on major billboards operated by the City.

Related Article

Denpasar Roads Awash with TV Commercials


When Helping Others is Highly Fashionable
Bali Smile Foundation Fashion Show Sales and Fund Raiser in Ubud, Friday, February 26, 2016

Bali is the home to a bevy of fashion brands – many of them home grown and now internationally recognized. Because of the work of Bali-based designers and their immense talent, the Island is today is acknowledged as a world fashion center.

Great fashion design is always a reason to “smile” causing leading designers to join forces and give something back via the Smile Foundation’s Fashion Show and Designer Sample Boutique to be held at the Indus Restaurant in Sanggingan, Ibud on Friday, February 26, 2016, from 2:30 until 5:00 pm.

All clothing and accessories displayed during the course of the afternoon have been donated by the designers with 100% of the proceeds going to support the Smile Foundation and their work to provide life-changing medical care to people with clefts and cranio-facial deformities.

Among the designers “giving back” to the community via this unusual fund-raising event are: Aku, Nadya, Thread of Life, Breeze, Oka Di Putra, Uma and Leopold, Lilly Jean, Phoenix Apparel, Paul Ropp, IO + CO, Quartzia, Zen Knits, Leo Zeldis and Religion.

The fashion event is being held as the Smile Foundation celebrates ten years of caring for over 2,500 patients and the opening of the second Smile Shop in Nyuh Kuning, Ubud.

Ticket price for the afternoon of fashion is Rp 150,000 and includes a welcome Drink, tea/coffee and cakes. Catwalk seating is also included together with the opportunity to buy designer garments and accessories at unbeatable prices.

Tickets can be purchased at the Smile Shops in Ubud and Nyuh Kuning or by calling +62-(0)361-233758.

Senyum Foundation Website


Enter the Year of the Monkey
Bali Expecting a Surge in Chinese Visitors for Lunar New Year

The Bali Chapter of the Indonesian Hotel and Restaurant Association (PHRI-Bali) has stated it is optimistic the Chinese Holiday period will increase hotel occupancy rates in Bali by 20-25%.

The prediction of improved occupancies occasioned by a massive influx of Chinese tourists was made by the chairman of PHRI-Bali, Tjokorda Oka Artha Ardhana Sukawati (Cok Ace), on Friday, January 29, 2015, as reported by DenPost.

Cok Ace said that from year to year the number of Chinese tourists coming to Bali over the Lunar New Year period continues to increase.

He said that 40% of Chinese tourists coming to Bali choose to stay in a five-star hotel, with the remainder staying in four and three star properties. Most Chinese tourists, he added, prefer accommodation located in the southern Badung regency of the Island.

The increased number of charter and scheduled flights from China to Bali is aiding the growing number of Chinese tourists to Bali. Tjok Ace said Chinese tourists to Bali increased 17% in 2015 reaching a total of 680,000.

The PHRI-Bali chairman expressed concerns that Chinese arrivals to Bali may decline in 2016 due to concerns over terrorism and other factors.


A Record Year
Bali by the Numbers: Bali Tops 4 Million Visitors in 2015

Final foreign tourist arrival number for Bali for 2015 recorded 4,001,654 visitors – just managing to surpass the targeted 4 million and an increase of 6.19% over total arrivals in 2014.
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Concerns that Bali would end 2015 falling short of the 4 million-visitor mark were remedied by strong arrivals for December 2015 that tallied 370,459 – an increase of 6.1% over December 2014 when 349,094 foreign visitors came to the Island.
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Worthy of note is the fact that Australian arrivals – still the number one source of foreign visitors to Bali -  hav entered negative territory. Month-on-month for December 2015, Australian arrivals declined by 7.41%. Meanwhile total Australian arrivals for 2015 declined 2.15%, this after years of steady growth.
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Chinese travelers to Bali are now the second largest source of foreign visitors, totaling 687,633 for 2015. While this is a 17.3% increase over the previous year, Chinese arrivals month-on-month for December 2015 declined 2.5%.

Japanese arrivals – once the main source of foreign visitors to Bali – now holds 3rd rank with 228,035 Japanese visitors in 2015. Month-on-month for December 2015, however, Japanese arrivals hit 20,215 declining 7.2%

The best performing markets in 2015 were UK (+31.77%), India (+34.49%), USA (+19.17%), New Zealand (+13.28%), Canada (+19.62%) and Germany (+14.08%).

The worst performing markets in 2015 were Malaysia (-15.4%), Singapore (-18.21%) and Russia (-28.18%).


When Meeting Planners Meet
‘Thank You’ Party held for Members of the Bali MICE Initiative

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On Thursday, February 4, 2016, Bali Discovery Events in cooperation with The Westin Nusa Dua, Bali, Hatten Wines, Bir Bintang and Sababay Wines hosted a gathering of “The Bali MICE Initiative” at the Velada Tapas Bar & Kitchen at the Westin.

The Bali MICE Initiative is comprised of Bali’s leading hotels, destination management companies and attractions featured in the 9th Edition of “Meet Bali – The Bali MICE Guide” – is the only comprehensive handbook for meeting and conference planner.
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The Westin Nusa Dua, Bali provided a most convivial gathering place and delicious Spanish-styled canapés at the Velada Tapas Bar and Kitchen as leaders from Bali’s exchanged ideas and insights on promoting the conference and meeting sector in Bali.
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The Bali MICE Guide is distributed to decision makers in the meetings, conference and exhibition sectors.


 
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