How transnational couples can start owning properties in Indonesia

If you are a foreigner married to an Indonesian or vice versa, this would be a forum you’d want to attend.

The reason is that until two weeks ago you’d have a pre-nuptial agreement if you want to have a normal life in Indonesia that allows you to buy and sell properties.  Article 29 of the 1974 Marriage Law makes it a bitch for you to divide up your property and debts unless this was agreed on before you get married. It does not recognize any agreement between consenting adults on their property and debts if it is made after marriage.

The consequences of such an interpretation of the law makes it virtually for transnational couples to buy and own property. Banks  would not give you a loan because the Law does not recognize the foreign spouse as a legal entity, meaning that if you die then they cannot take up the payments for the loan. There is apparently also some provision that if you do not have a prenup should any of you die, half of your assets would be surrendered to the state.

This was clearly unfair to Indonesians most of all, so it was good news that the Constitutional Court last month declared this policy unconstitutional. For more details on this decision see here.

But now that the Court has overturned the 42-year policy, what next for married couples? How should they go about drafting their Post-Nup agreements? Should it be bilingual? Where should such an agreement be filed at?

The Indonesian Mixed-Marriage Society (PerCa), that has been doing an excellent job championing the rights of transnational couples in Indonesia, is holding a talkshow next week to have these questions answered. Make sure you attend it if you want to avoid the uncertainties that usually accompany any simple bureaucratic procedure in Indonesia.