Naviguer sur le marché immobilier de Bali - Un guide complet pour investir dans l'immobilier à Bali
Bali’s allure transcends its breathtaking landscapes and vibrant culture. For many, it whispers the promise of a dream property, a haven of tranquility nestled amidst emerald rice fields or overlooking the azure expanse of the Indian Ocean. But before embarking on this exciting journey, navigating Bali’s unique land ownership laws and regulations is crucial for a smooth and secure investment. This comprehensive guide demystifies the complexities of Balinese property, offering vital insights on leasehold and freehold rights, unraveling due diligence procedures when investing in Bali real estate, and illuminating hidden gems – ensuring your investment journey is not just rewarding, but also well-informed. Understanding the Land Landscape: Leasehold vs. Freehold Unlike many countries, foreigners cannot directly own land in Bali. However, despair not! Enter the Hak Pakai, a long-term leasehold right granting you the privilege of possessing and enjoying a property for up to 30 years, with renewable options stretching for generations. This practical solution offers benefits for both investors and the environment, ensuring responsible land use and safeguarding Bali’s natural beauty. Choosing between Hak Pakai (leasehold) and Hak Milik (freehold) through nominee arrangements requires careful consideration of your long-term vision and budget. Here’s a breakdown to help you decide: Leasehold (pros and cons) More affordable: Requires a smaller upfront investment compared to freehold. Renewable: Offers the security of extending your lease beyond the initial 30 years, often with preferential renewal rates depending on the negotiation. Lower maintenance burden: Landowner typically handles major maintenance and repairs. No direct land ownership: You don’t own the land itself or the property itself, but rather the right to use and enjoy it. Potential rent increases: Leases may have clauses allowing for rent adjustments over time. Inheritance limitations: Leasehold rights are typically not inheritable in the same way as freehold property. Freehold (HGB or Hak Pakai) Full ownership: You legally “own” the land through a company Higher resale value: Offers greater potential for capital appreciation compared to leasehold. Inheritance potential: Can be passed down to heirs under specific legal conditions. Greater control: Provides more freedom in terms of development and renovations Possibility to leverage and get a mortgage to develop another property Higher upfront cost: Requires a significantly larger investment Maintenance responsibility: You are responsible for all maintenance and repairs on the land and property. Nuances and Considerations Beyond the basic framework, each option presents unique nuances to consider. For example, leasehold properties may have restrictions on certain types of construction or business activities. Conversely, nominee arrangements can be complex, requiring careful selection of a trustworthy trustee and ensuring clear legal documentation. Case Study: Finding Your Perfect Fit Imagine Sarah, a yoga enthusiast planning to open a retreat center in Bali. After careful research, she decides on a beautiful villa on freehold. She negotiates favorable terms and understands the potential for rent increases. With expert legal guidance, Sarah secures her dream property and takes the next step in investing in Bali real estate by using her first property as mortgage collateral to acquire a second one. After 4 years Sarah can now double her investment each time she refunds the mortgage by renting on AirBnb her properties. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Understanding Due Diligence for Investing in Bali Real Estate Due diligence when you investing in Bali real estate or Indonesia is your shield against hidden pitfalls. Here are some key steps to ensure a smooth and secure investment: Land Title Verification: Engage a reputable lawyer to verify the property’s land title, ensuring it’s free of encumbrances and held by a legitimate owner. Zoning Regulations: Understand the zoning of the land to avoid restrictions on your desired use of the property. Building Permits and Licenses: Confirm if necessary permits and licenses for construction or renovation exist, avoiding future complications. Environmental Considerations: Research potential environmental risks like flooding, landslides, or proximity to hazardous materials. Structural Integrity: Conduct thorough inspections to assess the property’s structural soundness and potential repair needs. Road access: Check if you have full right to access to your property Read also: Things to Know Before Investing in a Property in Bali Case Study: Paradise Lost – The Price of Skipped Due Diligence in Bali when buying a property The Dream: John, a globetrotting entrepreneur, stumbled upon a breathtaking cliffside villa in Bali. Lush greenery tumbled down to the turquoise ocean, and the whispering palms promised endless sunsets. He envisioned yoga retreats, art workshops, and a life dipped in island serenity. The price was a steal, the seller persuasive, and John, blinded by his Bali dream, rushed headlong into a purchase. Skipping Steps: In his haste, John neglected thorough due diligence. He skimmed the land title, ignored whispers of zoning issues, and didn’t bother with inspections. The seller’s charm and promises of “flexible regulations” were enough. The Nightmare Begins: Soon after moving in, the cracks started to show. Construction on a neighboring property blocked the ocean view, violating zoning regulations. Local authorities halted work, citing John’s lack of permits. His dream retreats became a legal nightmare. Hidden Costs: Inspections revealed structural issues, requiring costly repairs. The “flexible regulations” turned out to be costly bribes, draining John’s finances. The seemingly affordable price tag ballooned, leaving him with a property he couldn’t use and a mountain of debt. Lessons Learned for not doing a due diligence in Bali before investing a property: John’s Bali dream turned into a cautionary tale. His eagerness to own a piece of paradise overshadowed the importance of due diligence. His mistakes cost him dearly: Financial Loss: The hidden costs and legal fees spiraled, leaving John with a financial burden. Lost Time and Opportunity: Years were spent battling legal issues
Impôt sur le revenu des sociétés en Indonésie : taux et règles les plus récents
Indonesia has a legal basis in Article 23A of the 1945 Constitution (UUD 1945) for corporate income tax. There are various types of tax in Indonesia, especially for corporates. If you are a foreigner planning to open a business, it is important to understand them. Here’s the tax information in Indonesia that you must know: Corporate Income tax in Bali and Indonesia Taxation in Indonesia for resident corporations is subject to taxation on their global income. Foreign companies engaging in business through a permanent establishment (PE) in Indonesia assume similar tax obligations as resident taxpayers. The corporate income tax in Indonesia is set at 22% of the net profit. However new companies or certain sectors might benefit from a certain tax regime. Enjoy tax advantages tailored for small enterprises Corporate taxpayers with an annual turnover of up to 50 billion rupiah (IDR) are eligible for a 50% tax discount from the standard rate. This discounted rate applies proportionally to taxable income on the portion of gross turnover up to IDR 4.8 billion. Enterprises with a gross turnover not exceeding IDR 4.8 billion are subject to a final income tax rate of 0.5% based on turnover. Particularly of the regime, taxpayers are required to install the CIT on a monthly basis with self-assessment principle. Therefore, tax planning is necessary because the Annual Income Tax Return (SPT) must be submitted no later than the end of April of the following tax year. Branch Taxation in Indonesia Branch Profit Tax (BPT) is an additional tax imposed on a Permanent Establishment (PE), complementing the Corporate Income Tax (CIT). The BPT rate stands at 20% and is levied on the PE’s net profit. However, this rate may be subject to reduction based on the statement of a tax treaty between where the Branch is tax resident. Notably, an exemption from Branch Profit Tax is granted if the net profit after tax of the PE is reinvested in Indonesia, provided it meets specific requirements. This provision serves as an incentive for strategic reinvestment in the Indonesian business landscape. Never worry about taxes and accounting again Dealing with finances, taxes, and accounting can feel overwhelming, especially as a foreigner in Indonesia. Let us guide you through processes like tax calculation, payroll, personal or corporate tax, short-term investments, balance sheet analysis and much more. With ILA by your side, nothing can go wrong. Schedule a free consultation today or learn more about our tax and accounting services. Corporate Income Tax Payments and Deadlines in Indonesia Understanding Deductible and Non-Deductible Business Expenses in Indonesia A company starting in Indonesia has the first 3 years no advantages with deductible expenses. Indeed, the tax office applies the tax on the income and not on the net profit. However it is still important to record the expenses in order to maintain the balance sheet and PnL (profit and loss) of the company to fill the LKPM report out every quarter. Most of expenses of the company are deductibles. It includes: salaries rent donations expenses related to the business activity However, the tax office doesn’t recognize the expenses below as deductible: rent for private use taxes and penalties reimbursement for an employee if the expense is not related to the activity of the company (to avoid the withholding tax and tax on salary) Read also: Dubai to Bali : Tax Treaty Indonesia and UAE Other taxes Regional Taxes Corporate taxpayers may incur various regional taxes and retributions, with rates spanning from a minimum of 0.2% to a maximum of 75%. These rates are applied to a diverse set of reference values established by the respective regional governments. Businesses such as hotels, restaurants, villas, renters, spas, fitness centers have to pay a local tax called PB1. The rate is variable in instance from 10 to 12.5%. Import tax in Indonesia Luxury tax on import goods in Indonesia Despite a regulation from 2021 certain products are still subject to a luxury tax in Indonesia. This tax usually applies on top of the VAT. Import duty Importer or resident companies have to face import duty on top of the VAT. HS codes are primordial to determine the correct tax amount. Withholding tax on payment Particularly the Indonesian tax system requires that a taxpayer pays a tax on a payment done to another taxpayer. The party A buying a service or paying a dividend to another taxpayer needs to withhold a tax and requires the tax number of the second party to pay on its behalf. This amount is from 2 to 10% based on the type of payment. Taxpayers are subject to withhold a tax of 20% for any payment made to non resident. Transfer pricing is important to be planned in advance to optimize the tax payment. Read also: Tax Planning: How to Optimise Taxation in Indonesia Capital gain and Interest rate The system treats capital gain as income and applies the tax regulations described above. A withholding tax rate of 15% applies on the gross amount of interest. The WHT applied domestically on this interest serves as a tax credit, offsetting against the standard income tax rates of 22% for corporate taxpayers. VAT in Indonesia The Value Added Tax (VAT) law in Indonesia permits the government to adjust the VAT rate between 5% and 15%. As of April 1, 2022, the applicable VAT rate on deliveries of goods and services within Indonesia is 11%, with exceptions. Companies can export at 0% while the import of goods incurs an 11% VAT. Certain services related to movable and immovable goods outside the Customs Area fall under 0% VAT, including toll manufacturing, repair services, and consultation for construction. Services performed within the Customs Area for customers outside are subject to the standard 11% VAT. Consumption of foreign services and intangible goods, delivered via e-commerce to users in Indonesia, incurs an 11% VAT. The VAT is due on the accrual principle goods when the company delivers the goods or services . VAT filing is a monthly requirement,
Naviguer dans les transactions transfrontalières avec l'Indonésie : Des informations complètes pour la réussite des entreprises
In an era of global interconnectedness, Indonesia emerges as a key player in the realm of cross-border transactions. This archipelagic nation, with its diverse culture and economic dynamism, offers a plethora of opportunities for international businesses. However, to harness the potential of this thriving market, companies must delve deeper into the intricacies of cross-border payments with Indonesia. This comprehensive guide explores the five pivotal considerations, providing an in-depth roadmap for navigating the complexities and ensuring success amid new regulations. What is Cross-Border Transactions? Cross-border practices are the entry of imported goods from abroad without passing through the customs administration inspection process. Imported goods without this inspection are usually sold through e-commerce and shipped directly to the buyer. Indonesia’s regulatory landscape is multifaceted, encompassing a wide array of industry-specific regulations, trade policies, and foreign investment laws. To embark on a successful cross-border journey, companies must meticulously research and understand the regulatory intricacies relevant to their sector. Seeking guidance from local legal experts becomes imperative to navigate compliance requirements effectively. Engaging in thorough due diligence will not only ensure adherence to Indonesian laws but also mitigate legal risks, fostering an environment conducive to sustained growth. Furthermore, understanding Indonesia’s approach to foreign investment is crucial. The country has implemented various regulations to attract foreign capital while safeguarding its national interests. Navigating through the Investment Coordinating Board (BKPM) and comprehending the Negative Investment List, which outlines sectors with restricted foreign investment, is vital. Staying abreast of regulatory changes and maintaining a flexible strategy will empower businesses to adapt to evolving compliance landscapes. Cultural Sensitivity and Business Etiquette in Indonesia Indonesia’s rich cultural tapestry plays a pivotal role in shaping business interactions. Establishing and nurturing relationships with Indonesian counterparts requires a keen understanding of cultural nuances and business etiquette. Unlike many Western cultures, interpersonal relationships hold significant value in Indonesian business practices. Taking the time to build trust and rapport through face-to-face meetings can greatly enhance the success of cross-border ventures. Businesses should invest in cross-cultural training programs for their teams, fostering cultural sensitivity and effective communication. Recognizing the hierarchical nature of Indonesian society and adhering to formalities in both written and verbal communication is crucial. Demonstrating respect for local customs and traditions not only facilitates smoother interactions but also contributes to the development of long-lasting partnerships. Also Read: New Import Policy for Hand-Carry Goods in Indonesia in 2024 Currency Exchange and Financial Considerations in Indonesia The Indonesian Rupiah (IDR) serves as the official currency, and its exchange rates can significantly impact the financial aspects of cross-border transactions. Businesses engaged in international trade must closely monitor currency trends, assessing potential exposure to currency risk. Implementing risk mitigation strategies, such as hedging, provides a safeguard against volatile exchange rates. Collaborating with local financial institutions is essential for secure and efficient fund transfers. Ensuring compliance with Indonesia’s financial regulations and exploring avenues for cost-effective currency exchange solutions can contribute to financial stability in cross-border dealings. Transparent communication with financial partners and a proactive approach to currency risk management will fortify the financial foundation of cross-border engagements. Customs and Import/Export Regulations in Indonesia Efficient navigation of customs and import-export Indonesia regulations is critical for ensuring the seamless flow of goods in cross-border transactions. Businesses must comply with Indonesia’s specific rules, which include tariff structures, documentation, and the broader Indonesia trade policy framework. Understanding these elements prevents delays and ensures compliance. Partnering with experienced customs brokers or logistics providers can streamline processes, reducing bottlenecks at borders. Understanding Indonesia’s customs procedures, including its electronic customs system, helps optimize supply chains. Pre-shipment inspections and proper permits further support efficient import-export Indonesia operations. Also read: How to Register Trademark in Indonesia (2024 Guide) Tax Optimization in Cross-Border Transactions in Indonesia Optimizing tax considerations is a crucial aspect of cross-border transactions. Indonesia, like any other country, has its tax regulations, and businesses must navigate these complexities to ensure compliance while maximizing efficiency. ILA Consulting, with its expertise in investment and legal advisory, plays a pivotal role in guiding businesses through the intricacies of tax optimization in cross-border ventures. ILA Consulting’s tax experts delve into the specifics of Indonesia’s tax laws, providing tailored strategies to minimize tax liabilities legally. This includes exploring tax incentives available for certain industries and structuring transactions in a tax-efficient manner. The goal is to strike a balance between compliance and efficiency, ensuring that businesses meet their tax obligations while optimizing their overall financial position. The complexities of international tax law require a nuanced understanding, and ILA Consulting brings its wealth of experience to the table. By partnering with ILA, businesses can navigate the intricate landscape of cross-border taxation, mitigating risks and leveraging opportunities for tax optimization in the Indonesian market. Intellectual Property Protection in Indonesia As businesses engage in cross-border transactions, safeguarding intellectual property (IP) becomes paramount. Indonesia has made significant strides in enhancing IP protection, yet proactive measures are essential for comprehensive coverage. Conducting thorough due diligence on existing IP rights, registering trademarks locally, and formulating robust contractual agreements with local partners contribute to a robust IP protection strategy. Indonesia’s legal framework provides avenues for the protection of trademarks, patents, and copyrights. Businesses should leverage these mechanisms to secure their intellectual assets effectively. Crafting contracts that clearly delineate IP ownership and usage rights, coupled with periodic IP audits, fortifies a company’s position against potential infringements and legal challenges. How ILA Global Consulting Can Assist You in This Journey Embarking on cross-border transactions with Indonesia requires a strategic partner who can navigate the intricacies and ensure a smooth journey. ILA Global Consulting, a leading firm in investment and legal advisory, stands ready to be your guide. Tailored Legal Guidance: ILA Consulting’s legal experts specialize in Indonesian regulations, offering precise guidance to ensure compliance and mitigate legal risks effectively. Strategic Financial Advice: Our financial analysts monitor currency trends, providing real-time insights and strategies to mitigate financial risks associated with cross-border transactions. Cultural Sensitivity Training: Cultural advisors at ILA Consulting provide cross-cultural training programs, fostering awareness and understanding to navigate the
Prendre sa retraite en Indonésie : Le paradis grâce aux visas, à la propriété et à une vie heureuse
Indonesia’s siren song beckons louder than ever, promising sun-drenched shores, vibrant festivals, and a warm embrace for retirees seeking a serene haven. But before you pack your bags and book your flight, navigating the legalities and logistics of relocation can feel like deciphering ancient hieroglyphics. Fear not, intrepid dreamers! This comprehensive guide illuminates the path to retire in Indonesia, covering the intricacies of visas, property investments, and the secrets to unlocking your blissful Indonesian retirement. Discover the beauty of an Indonesia retirement visa, explore the details of a visa for Indonesia, and understand the cost of living with this complete guide. Who Can Apply for a Retirement Visa in Indonesia? Indonesia gives the opportunity to retired people to spend their golden days into the country and apply for a limited stay permit (KITAS). People having reached 60 years can apply for the E33F Retirement Visa or E33E Silver Hair. Your visa process made easy with ILA Indonesia has so many visas to choose from, each with its own requirements, regulations, and duration. With more constantly being issued by the government, it can be hard to keep track and choose one that is right for you. With the help of ILA, you can be sure that you’ll get the best visa for your needs as quickly and efficiently as possible without having to worry about any missing documents. Whether you’re looking for an Investor KITAS, Working KITAS, Second Home Visa, Spouse KITAS, Multiple Entry Business Visa or Remote Worker Visa, we can help make the process efficient and smooth. Schedule a free consultation today or learn more about the different visa options. Visa Options: Your Key to Paradise Awaits E33F – Retirement Visa (KITAS) This visa is valid for 1 year with proven income (minimum US$2000/month), is ideal for active retirees exploring the diverse tapestry of Indonesia. Document requirements: Passport valid for at least 6 (six) months (for holders of travel documents other than passports such as emergency passports, documents of identity, etc. must be valid for 12 months). Personal bank statement with minimum amount USD $2000 or equivalent the last 3 months period (including name, date of period, and balance account). Recent photograph. Curriculum Vitae. Travel Itinerary. Guarantee from the guarantor. Bank account proving income or allowance with a value of US$3,000 per month. E233E Silver Hair (KITAS) This visa grants you a 5 stay permit with multiple entries, minimal restrictions, and the freedom to bring your loved ones. Your tropical escape awaits! Document requirements: Valid Nationality Passport at least 6 (six) months. Latest color photograph. Curriculum Vitae. Travel Itinerary. Statement of commitment that the applicant will deposit funds in an account in his/her own name worth at least US$50,000 (fifty thousand US dollars) in a state-owned bank. Proof of income or benefits with a minimum value of US$3,000 (three thousand US Dollars) per month. E33 – Second home visa: The Gilded Gateway to Luxury For high-net-worth individuals, the Second home Visa (E33) opens the doors to a life of exclusivity. You can obtain this visa with a validity of 5 years with a possible extension to 10 years. This KITAS is a perfect solution for people wishing to establish Indonesia as their second home or willing to retire in Indonesia. The applicant of the second home visa must fulfil at least one of the requirements below. The property investment cannot be a leasehold and has to be purchased under Hak Pakai. Deposit funds in an account under the name of the Foreigner at a state-owned bank with a value of US$ 130,000 (one hundred thirty thousand US Dollars) Purchase property in Indonesia such as an apartment/flat house with a value of US$1,000,000 (one million US Dollars). Read Also: E33G: Remote Worker Visa (Digital Nomad) in Bali Beyond the Visa: Building Your Dream Property Portfolio Your Indonesian retirement isn’t just about a visa; it’s about building a life you love. Where to retire Beachfront villas: Wake up to the sound of waves lapping at your shore in Bali or Lombok. Charming traditional houses: Immerse yourself in the rich culture of Yogyakarta or Ubud. Vibrant city hubs: Experience the energy of Jakarta or Surabaya, with modern amenities and cultural offerings. Serene mountain retreats: Find peace and tranquility in the lush highlands of North Sumatra or West Java. Investment Options: Direct purchase: Own your slice of paradise with complete control. Leasehold : Enjoy 30+ years of property rights without land ownership. Co-ownership projects: Share costs and maintenance responsibilities while enjoying a piece of the dream. Leaseback options: Generate passive income through guaranteed rental agreements Remember: Seek professional guidance: Consult experienced lawyers and real estate agents to navigate legalities, understand property taxes and maintenance costs, and ensure a smooth investment. Plan for the future: Consider potential property appreciation, exit strategies, and long-term maintenance costs for financial security. Living Your Blissful Indonesian Dream: Embrace the local culture: Learn Bahasa Indonesia, connect with communities, and immerse yourself in the warmth of Indonesian hospitality. Healthcare: Research healthcare options and consider international health insurance for peace of mind. Lower cost of living: Enjoy a comfortable life on a budget compared to many Western countries. Activities and exploration: From diving in coral reefs to trekking through volcanoes, Indonesia offers endless possibilities for adventure and discovery. Bonus Tips for Success: Start early: Visa applications and property transactions can take time. Plan ahead to ensure a smooth transition. Be flexible and adaptable: Embrace the Indonesian way of life and be prepared for unexpected situations Invest in Yourself: Learn new skills, pursue hobbies, and stay active to make the most of your Indonesian retirement. For spend your retire in Indonesia you can join local yoga classes, take up painting, or volunteer in your community. An active life keeps your mind and body vibrant, enriching your golden years in paradise. Explore Beyond Tourist Destinations: Venture off the beaten path and discover hidden gems. Visit traditional villages in Sulawesi, hike through the rice terraces of Bali, or lose yourself in
Les FPI en Indonésie : Du concept au marché
Indonesia’s Real Estate Investment Trusts (REITs), officially known as Dana Investasi Real Estat Berbentuk Kontrak Investasi Kolektif (DIREs in Indonesia), are on an exciting growth trajectory. If you’re interested in tapping into this potential, understanding the process of creating a DIRE is crucial. Here’s a breakdown of the key steps, along with further insights into the Indonesian REIT landscape: What are REITs (DIREs) in Indonesia? Real Estate Investment Fund (REIT) is a container used to collect funds from the public or investors to be invested in real estate assets, assets related to real estate, and/or cash and cash equivalents. Meanwhile, the Infrastructure Investment Fund (DINFRA) is a container in the form of a Collective Investment Contract used to raise funds from the investor community to be invested mostly in infrastructure assets by the Investment Manager. Make navigating real estate in Indonesia easy Save time and money by letting ILA’s team of experts guide your real estate journey in Indonesia. We can help with due diligence, land title transfers, notary services, contract drafting and reviewing, building permits, various licences and more. Find more information about our broad range of real estate services, or reach out today for a free consultation. Conception and Planning of DIREs: Identify a Niche: Research market demand and choose a focus for your DIRE, such as retail, office, healthcare, or logistics. Analyze existing DIREs to avoid saturation in specific sectors. Assemble a Team: Gather experienced professionals in real estate development, finance, legal matters, and REIT management. Develop a Business Plan: Define your investment strategy, target properties, funding sources, and expected returns. Regulatory Compliance DIREs: Form a Legal Entity: Establish a corporation that will become the DIRE (REITS in Indonesia). Consult legal advisors to ensure compliance with Indonesian regulations. Obtain OJK Approval: File an application with the Financial Services Authority (OJK) for DIRE registration. This involves submitting detailed documentation about your business plan, financial projections, and team expertise. Meet REIT Qualification Criteria: Ensure your DIRE adheres to the minimum requirements, including: Investing at least 75% of assets in real estate or related assets. Generating at least 75% of gross income from rents, real estate sales, or mortgage interest. Distributing at least 90% of taxable income to shareholders as dividends. Capital Raising and Investment: Initial Public Offering (IPO): List your DIRE on the Indonesia Stock Exchange (IDX) to raise capital from public investors. This requires meticulous preparation and adherence to IPO regulations. Private Placement: Secure funding from institutional investors or high-net-worth individuals through private placement deals. This can be a faster route to market but may involve higher interest rates or stricter investment terms. Acquire Target Properties: Use the raised capital to purchase income-generating real estate assets that align with your DIRE’s focus. Conduct thorough due diligence and ensure property titles are clear. Ongoing Management and Operations: Establish a Management Team: Build a team with expertise in property management, tenant relations, financial reporting, and compliance. Maintain High Occupancy Rates: Implement effective leasing strategies and property maintenance to attract and retain tenants, ensuring steady income generation. Distribute Regular Dividends: Pay out at least 90% of taxable income to shareholders as dividends, fulfilling a key REIT requirement and attracting investors seeking regular returns. Ensure Transparency and Reporting: Maintain accurate financial records and prepare regular reports for shareholders and regulatory bodies. Beyond the Basics: A Deeper Dive into Indonesian REITs Government Incentives: The Indonesian government actively supports DIRE growth through tax benefits like double taxation exemption and simplified regulations. This creates a favourable environment for REIT development. Market Potential: Indonesia boasts a thriving economy and a burgeoning middle class, driving demand for diverse real estate sectors. DIREs offer investors exposure to this growth potential through various property types. Challenges and Opportunities: While the market is promising, liquidity concerns and limited diversification options remain challenges. However, government efforts to encourage broader sector representation and improve market depth are underway. Investment via a REIT Scheme Review Double taxation hurdle cleared for Indonesian real estate investors! The government recently made a big move, eliminating double taxation for anyone investing in property through a special program called the “Collective Investment Contract” (CIC). You can now invest in Indonesian real estate and keep more of your hard-earned money. Think of it like this: Imagine a group of friends wanting to buy a building together. Instead of each person buying directly, they pool their money in a joint account and appoint someone to manage it. The CIC does that for real estate investments, similar to REITs Indonesia. You join forces with other investors, combine your money, and reap the benefits of owning income-producing properties. Previously, investing this way meant paying taxes twice: once on your share of the profits and again on the group’s activities. But thanks to the new regulation, that’s no more! You keep more of your profits, making it a much more attractive option for investors. So, if you’ve ever dreamed of owning a piece of Indonesian real estate, now’s the time to explore the CIC program. It’s a simpler, more tax-friendly way to invest and potentially enjoy a steady stream of income from your property holdings. REITs Investment Limits Real estate assets, such as buying an office building and renting it out. Assets related to real estate, such as buying shares/bonds of property companies In the form of cash or cash equivalent Overview of prospective licenses and permits required to conduct business operations The creation of the DIRE-KIK and the transfer of the land and building assets into the DIRE-KIK involves the following steps: Establish DIRE-KIK; Appoint Investment Manager and Custodian Bank to manage DIRE-KIK and oversee and execute cash handling and payments, respectively Relevant parties, including Holdco to subscribe for units in the DIRE-KIK; Dire-KIK uses the funds to acquire: The shares of existing companies owning the land Establish its own PMA company, inject the funds into the PMA, and the PMA company acquires the land and building assets. The Benefits and Disadvantages of Reits in Indonesia Investing in REITs certainly has
Indonésie : Un joyau caché pour les opportunités minières
Indonesia, an archipelago jewel nestled between the Indian and Pacific Oceans, boasts more than just sun-kissed beaches and vibrant coral reefs. Beneath its lush landscapes, Indonesia holds vast reserves of mineral coal, attracting investors eager to meet global demand for critical resources. The country offers opportunities in mining a range of valuable commodities. Its from the glittering allure of gold to the essential nickel used in electric vehicle batteries. Indonesia truly presents a compelling landscape for ambitious mining ventures. A Geological Tapestry Indonesia’s geological tapestry is a testament to its mineral abundance. Formed at the crossroads of tectonic plates, the country is endowed with a diverse spectrum of metal deposits, making it a global leader in several key sectors: Nickel: Ranked the world’s top producer with an estimated 75 million tons in reserves, Indonesia sits at the helm of the electric vehicle revolution. Nickel’s role in lithium-ion batteries fuels a projected demand surge of 250% by 2025, making it a lucrative prospect for investors. Gold: With an estimated 2,100 tons of gold reserves, Indonesia holds the seventh-largest gold deposits globally. Its long history of gold mining and the metal’s inherent value as a safe haven during economic uncertainty make it a compelling investment option. Coal: Though transitioning towards renewables, Indonesia remains a major coal producer, boasting the world’s sixth-largest reserves. This readily available resource caters to domestic and international demand for energy generation, offering potential for investment in efficient and sustainable coal utilization technologies. Copper: Home to the Grasberg mine, the world’s largest copper deposit, Indonesia is a significant player in this versatile metal’s market. Copper’s applications range from electronics and construction to renewable energy infrastructure, presenting diverse investment opportunities. Beyond the Big Four: While these minerals dominate the headlines, Indonesia’s geological bounty extends far beyond. Tin, bauxite, manganese, and even rare earth elements like lithium and cobalt further enrich the investment landscape, offering opportunities for specialized investors seeking unique niches within the mining sector. Start your investment journey in Indonesia the right way With so many diverse investment opportunities in Indonesia, you need to make sure you’ve got the right setup to do business here. Get help from our team of experts to register your company, navigate the real estate market and secure your visa and stay permit. Schedule a free call with us today to plan your next steps with ILA. Data-Driven Insights To fully grasp the potential within Indonesia’s mining industry, let’s delve into some concrete data: Indonesia contributes 9% to the global nickel supply, with a projected annual growth of 7.5% in the next five years. This translates to a potential market value of over $100 billion by 2027, attracting major players like Tesla and LG Energy Solution to invest in Indonesian nickel projects. Gold production in Indonesia reached 188 tons in 2022, and experts predict a steady rise to 250 tons by 2025. This translates to a potential market value exceeding $15 billion, making gold a consistently attractive investment option. Coal exports from Indonesia surpassed $25 billion in 2022, with projections for continued growth in the near future. While the industry faces pressure to transition towards renewables, efficient coal utilization technologies offer investment potential in the short to medium term. The Indonesian government has pledged $60 billion for infrastructure development by 2024, significantly impacting the mining sector. This includes upgrades to ports and transportation networks, facilitating easier mineral transportation and boosting the industry’s efficiency and competitiveness. Investment Mining in Indonesia Opportunities Unfold These insights paint a promising picture for investors. Here are some potential avenues to consider: Direct investment in mining projects: Partnering with established or emerging mining companies to explore, develop, and extract valuable minerals. Investing in mining technology and services: Providing innovative solutions for automation, safety, and environmental sustainability within the mining sector. Supporting downstream processing industries: Investing in facilities and infrastructure to refine extracted minerals within Indonesia. Investing in renewable energy solutions: Partnering with mining companies to develop and implement renewable energy projects within their operations. By mitigating environmental impact and attracting ESG-conscious investors. Challenges and Considerations While the potential is vast, navigating the Indonesian mining landscape requires careful consideration of certain challenges: Regulatory compliance: Ensuring adherence to environmental and social regulations, which can be complex and subject to change. Community engagement: Building strong relationships with local communities and ensuring mining projects benefit the surrounding population. Sustainability practices: Implementing responsible mining practices that minimize environmental impact and promote long-term sustainability. Market fluctuations: The mining industry is inherently volatile, and prices of minerals can fluctuate significantly, requiring a risk management strategy. A Model for Success: Martabe Gold Mine and Beyond The Martabe Gold Mine in North Sumatra serves as a prime example of responsible investment in Indonesian mining. This gold and silver mine, operated by PT Agincourt Resources, adheres to strict environmental and social responsibility standards. The company has invested in education, healthcare, and infrastructure projects in the surrounding communities, fostering sustainable development and goodwill. Martabe’s success demonstrates the potential for mining ventures to be not just economically viable but also socially beneficial. Beyond Martabe: Embracing ESG Principles Investors seeking to navigate the Indonesian mining landscape can further their success by embracing Environmental, Social, and Governance (ESG) principles. Integrating ESG practices into mining projects can lead to: Reduced operational costs: Efficient resource management, waste reduction, and renewable energy adoption can translate to significant cost savings. Enhanced brand reputation: Adherence to ESG principles fosters positive community relations, strengthens investor confidence, and improves brand perception. Greater access to capital: ESG-focused investors are increasingly seeking opportunities aligned with their values and incorporating ESG. Examples of ESG Implementation in Indonesian Mining PT Vale Indonesia, a nickel producer, partnered with local communities to develop a mangrove restoration program, mitigating environmental impact and creating sustainable livelihoods. PT Freeport Indonesia, a copper and gold producer, invested in renewable energy projects and established a biodiversity conservation program, showcasing a commitment to environmental sustainability. PT Bukit Asam, a coal producer, implemented community development programs focused on education, healthcare, and infrastructure. Indonesia’s
Contrats et accords à Bali : Légalités
The allure of Bali’s emerald rice paddies, turquoise waters, and vibrant culture is undeniable. But beyond the postcard scenery lies a complex legal landscape, especially when it comes to contracts and agreements in Bali. Whether you’re purchasing your dream villa, launching a business venture, or securing employment, understanding the nuances of Balinese contracts is crucial for protecting your interests and ensuring a smooth experience. This comprehensive guide delves into the intricacies of contract navigation in Bali, offering practical tips for drafting, reviewing, and understanding agreements across three key areas: property purchases, business partnerships, and employment contracts. Legal Steps for Purchase Property in Bali Bali’s property market offers diverse options, from charming traditional houses to luxurious beachfront villas. However, purchasing property comes with a unique set of legal considerations. Here are some key points to remember: Land Ownership Foreigners can own or lease land in Bali. You can ensure that your contract explicitly mentions the Hak Pakai and its duration. Nominee Arrangements While frowned upon by some, nominee agreements allow foreigners to indirectly own land through a local trustee. These agreements, however, require meticulous drafting and legal expertise to avoid disputes as Indonesia does not recognise those agreements. Due Diligence Don’t be swayed by idyllic views. Thoroughly research the property’s legal status, zoning regulations, and potential encumbrances. Engage a reputable lawyer to conduct due diligence and review the sales agreement. Contract Clauses Pay close attention to clauses regarding payments, completion timelines, warranties, and dispute resolution mechanisms. Ensure your contract is clear, concise, and translated into English if necessary. Case Study: Securing Your Dream Villa in Bali John, an American entrepreneur, fell in love with a traditional Balinese villa overlooking a rice paddy. Before signing the purchase agreement, John followed these steps: He hired a lawyer specializing in Balinese property law to conduct due diligence. The lawyer reviewed the land title, zoning regulations, and any potential encumbrances. John negotiated the contract clauses, ensuring clarity on payment terms, completion timelines, and warranty coverage. He had the contract translated into English for his complete understanding. By taking these precautions, John secured his dream villa with confidence and avoided potential legal pitfalls. Get professional legal advice for Indonesia Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead. At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more. You’re not alone. Reach out today to schedule a free consultation or read more about our legal service. Legal Key Points for Business Partnerships in Bali Bali’s burgeoning entrepreneurial ecosystem offers exciting opportunities for collaboration. However, before shaking hands in a partnership, ensure you have a solid legal foundation. Here are some considerations: Partnership Structure Decide on the most suitable structure for your venture, such as a joint venture, limited liability company (LLC), or partnership agreement. Each structure has different legal implications and tax consequences. Memorandum of Understanding (MOU) While not legally binding, an MOU can establish the core principles and intentions of your partnership before finalizing a formal agreement. Shareholder Agreements For LLCs, a shareholder agreement outlines ownership percentages, voting rights, profit-sharing, and dispute resolution mechanisms. Intellectual Property (IP) Clearly define ownership and usage rights for any intellectual property developed within the partnership, including trademarks, patents, and copyrights. Example: Drafting a Watertight Shareholder Agreement Emma and Liam, two friends, decided to open a yoga retreat in Bali. They created a detailed shareholder agreement that included: Defined ownership percentages and voting rights for each partner. Established clear profit-sharing formulas based on investment and contribution. Outlined dispute resolution procedures for any potential disagreements. Addressed intellectual property rights for the retreat’s branding and marketing materials. This agreement provided Emma and Liam with a secure framework for their partnership, promoting transparency and preventing future conflicts. Understanding Employment Contracts in Bali Whether you’re hiring local talent or working remotely in Bali, a well-defined employment contracts is essential. Here are some key points to remember: Contract Language Ensure the contract is in English or a language you understand and make it bilingual to binding the Indonesian law. Job Description Clearly define the employee’s role, responsibilities, and performance expectations. Compensation and Benefits Specify salary, bonuses, overtime pay, leave entitlements, and other benefits. Research and adhere to Balinese labor laws regarding minimum wage, working hours, and mandatory benefits. Termination Clauses Clearly outline the grounds and processes for termination of employment for both the employer and employee. Understand the concept of “mutual termination” and its implications for severance pay. Dispute Resolution Establish a mechanism for resolving any disputes that may arise. Consider mediation or arbitration as alternatives to lengthy and expensive litigation. Example: Protecting your Interests with a Fair Contract Sarah, an Australian digital nomad, secured a freelance writing job with a local Bali-based tourism company. Before starting, she negotiated and signed a contract that included: A detailed job description outlining her specific writing tasks and deliverables. Clear payment terms with deadlines and specified currencies. Entitlement to paid leave is based on Balinese labor laws. A dispute resolution clause specifies a mediation process for any disagreements. By having a well-drafted contract, Sarah protected her rights, ensured fair compensation, and established a clear working relationship with her employer. Important Tips for Managing Contracts and Agreements in Bali Seek Professional Help Engaging a reputable lawyer and legal like ILA familiar with Balinese law is crucial for navigating the complexities of contracts. Their expertise can save you time, money, and potential legal headaches. Cultural Sensitivity Be mindful of cultural differences and communication styles. Directness may be perceived as disrespectful, and building trust takes time. Practice patience and open communication. Don’t Rush Thoroughly review and understand the contract before signing. Don’t be pressured into rushed decisions. Take your time to clarify any doubts or concerns with your counterpart. Maintain Open Communication Clear and consistent communication with your counterparts is essential for building