Understanding Inheritance Law in Indonesia for Expats

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Understanding inheritance law in Indonesia for expats is essential for foreigners living, investing, or marrying in Indonesia. 

The country’s legal system is complex because it combines civil law, Islamic law, and customary (adat) law, which often overlap. 

This plural system can create confusion for expatriates, especially in matters of property ownership, marital assets, and inheritance procedures. 

Without clear documentation, heirs may face difficulties transferring property or assets after a death. 

Therefore, knowing how inheritance law in Indonesia for expats works helps ensure legal certainty and protect family assets.

Legal Framework of Inheritance

Inheritance in Indonesia is governed by three legal systems: civil law, Islamic law, and customary law. 

Civil law, based on the Indonesian Civil Code (KUHPerdata), usually applies to non-Muslims and foreign nationals. 

Islamic law applies to Muslims through the Compilation of Islamic Law, while customary law varies by region.

For most expats, the civil law system is the main reference. 

However, if an expat is married to an Indonesian citizen or owns joint property, other legal principles may apply. 

Determining which legal system governs a case is the first step before starting any legal or notarial process related to inheritance law in Indonesia for expats.

Property Ownership Rights for Expats

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Indonesia’s Basic Agrarian Law (Law No. 5 of 1960) restricts foreigners from owning land under Hak Milik (Freehold Title). 

However, expats can legally acquire property through rights such as Hak Pakai (Right of Use), Hak Guna Bangunan (Right to Build), or Hak Milik atas Satuan Rumah Susun (Ownership of Apartment Units). 

When a foreign property holder passes away, their heirs must comply with both inheritance and land regulations. 

Under inheritance law in Indonesia for expats, if the heir is also a foreigner and does not meet residency or ownership criteria, the property must be sold or transferred to an eligible Indonesian citizen within a certain period as required by the Ministry of Agrarian Affairs (ATR/BPN).

Rights and Obligations of Heirs

Under the Civil Code, inheritance takes effect upon death and includes transferring both rights and obligations to heirs. Heirs may accept or reject inheritance. 

Acceptance can be unconditional (taking assets and debts) or conditional (limited to the estate’s value). 

If there is no will, assets are divided equally among legal heirs.

The Civil Code also enforces a forced heirship rule, where close family members such as a spouse and children must receive a reserved portion of the estate, even if the will states otherwise. 

Understanding these provisions of inheritance law in Indonesia for expats helps ensure assets are distributed fairly and legally.

Read more:

What Is Rumah Tapak in Indonesia? A Complete Guide for Expats and Property Buyers

Making a Will in Indonesia

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Creating a valid will is highly recommended for foreigners. 

A will ensures property and assets are distributed according to personal wishes and simplifies legal processes after death. 

Indonesia recognizes three types of wills: open wills made before a notary and witnesses, closed wills submitted in sealed envelopes, and private wills written personally. The open will is the most secure and enforceable.

All notarial wills must be registered in the Central Wills Registry (Daftar Wasiat Pusat). 

Expats who already have a will in their home country should make a separate Indonesian will for local assets to avoid conflicts in international probate procedures under inheritance law in Indonesia for expats.

Inheritance Procedures

When an expat or their spouse passes away, several legal steps must be completed. 

The process starts with obtaining a Death Certificate from the Civil Registry Office. 

The will’s validity is then confirmed through a notary or the Wills Registry.

Heirs are determined by the Religious Court for Muslims or the District Court for non-Muslims. 

If there is no will, a Certificate of Heirship (Surat Keterangan Ahli Waris) may be required. 

Once heirs are identified, a notary prepares an Inheritance Distribution Deed (Akta Pembagian Waris). 

After paying applicable taxes such as BPHTB, the property ownership transfer is finalized at the Land Office (BPN). 

Completing these steps ensures compliance with inheritance law in Indonesia for expats.

Mixed Marriages and Inheritance Issues

Mixed-nationality marriages often face unique challenges. 

According to the Marriage Law (No. 1 of 1974), assets gained during marriage are considered joint property unless a prenuptial or postnuptial agreement separates ownership.

If an Indonesian spouse dies and the foreign spouse inherits Hak Milik property, the foreigner cannot permanently hold this title. 

Under inheritance law in Indonesia for expats, such property must be sold or transferred to an Indonesian citizen within one year or risk being forfeited to the state. 

To prevent this, couples should make a marital property agreement clarifying ownership and inheritance rights before acquiring property.

Read more:

Understanding the Land Certificate Process in Indonesia for Foreigners

Practical Advice for Expats

To ensure a smooth inheritance process, expats should prepare a local will through a notary, maintain updated property and tax documents, and seek legal advice from professionals familiar with inheritance law in Indonesia for expats. 

It is also wise to grant a power of attorney to a trusted person for managing assets in case of incapacity or death. 

Early planning helps protect assets, minimize disputes, and ensure heirs receive their inheritance legally and efficiently.