Two persons who are subject to different laws, one is an Indonesian citizen and other is a foreign citizen, wish to get married, is called “Mixed Marriage” pursuant to Art. 57 of Law No.1 of 1974 regarding Marriage (January 2, 1974) (“Law 1/74”). There are certain legal issues arising in a Mixed Marriage.

Introduction

Indonesia has a New Investment Law No.25 of 2007 (April 26, 2007) (“Law 25/07”). The Law 25/07 supersedes both Law No.1 of 1967 regarding Foreign Investment (January 10, 2007) and Law No.6 of 1968 regarding Domestic Investment (July 3, 1968).

Law 25/07 integrates the previous investment laws and its implementing regulations to some extent, but affirmatively addresses some of the impediments frequently cited by foreign investors doing business in the country. Noteworthy changes including those relating to investment approval procedures, land titles, and incentives.

Law 25/07 introduces new issues e.g. Corporate Social Responsibility and Dispute Settlement mechanism – International Arbitration.

Law 25/07 also introduces one door-integrated services pursuant to licensing and non-licensing process. The process runs from the application stage until the issuance documents both licensing and non–licensing is conducted in one place.

A Foreign Company could not establish a branch office in Indonesia for purpose of conducting the operational activities of its principal company such as trading or business transactions. In order to conduct those activities in Indonesia, a Foreign Company must establish an Indonesian legal entity. It is so-called a Foreign Investment Company or PT Penanaman Modal Asing (“PT PMA”).

Moreover, a Foreign Company that wishes to assess the potential market in Indonesia may establish a Representative Office and not a branch office.

Investment in Indonesia is regulated mainly by New Investment Law No.25 of 2007 (April 26, 2007) (“Law 25/07”). Law 25/07 integrates the previous investment laws and its implementing regulations to some extent, but deals with some of the bottlenecks frequently cited by foreign investors doing business in the country. Important changes include those relating to investment approval procedures, land titles, and incentives.

Law 25/07 introduces new issues such as Corporate Social Responsibility and Dispute Settlement mechanism. Law 25/07 also introduces one door-integrated services pursuant to licensing process. The process runs from the application stage until the issuance of documents of all necessary documents, everything can now be done.

Moreover, Law 25/07 gives regencies and cities the right, authority and obligation to regulate and self-manage investment approvals taking into account the interests of the local communities.

Law 25/07 also offers equal treatment of every investor by bureaucracy reform in investment services and fiscal incentives. It shows the efforts of the government to make the investment climate more transparent.

In late 90s, Indonesia Laws regarding land has been amended. New laws are now permitted the foreigners to purchase apartments in Indonesia if the building has a strata title status.

Moreover, the foreigners can not hold the strata title of ownership of the apartment. The foreigners only can hold the right of use of the apartment.

Government Regulation 41 of 1996 regarding Ownership of Residences by Foreign Persons Domiciled in Indonesia (“Law 41/96”) clearly stipulate that the foreigner can hold the right of use of apartment with certain conditions e.g. the said foreigner is given benefit to Indonesia. Moreover, the right of use is only given for 25 years and can be extended for other 25 years.