“Marriage agreement has significant role especially for mixed marriage couple since it related the ownership of assets”
Are you and your partner is a mixed nationality marriage couple? Do you and your partner have assets acquired before the marriage? Why it is important to you to make a marriage agreement?
According to Law No. 1 of 1974 on Marriage paragraph 57, stated that mixed marriage is:
“Marriage between two people in Indonesia are subject to different law, because of differences in nationality and one of them is Indonesian nationality”
One of the most important clauses in the marriage agreement is the separation of assets. This is because a part in the agreement governing about the separation of assets. This matter is intended to make a segregation of assets between Indonesian and non-Indonesian couple, so that does not occur a mixing assets that may lead a loss of the right to own the land or property in Indonesia apart from the right to use in a limited period of time.
This caused by, in Agrarian Law No. 5 of 1960 which is in principle prohibits the ownership especially right of ownership to the foreigner.
Moreover, there is a regulations in some Banks that require marriage agreement to the couple who want to apply for a credit. It is regulated in the Regulation of Bank Indonesia No. 7/14/PBI of 2005 on limitation of rupiah transactions and foreign currency landing by banks to the Foreigner. The main scope of the regulation is for foreigner (expatriate) who have a permission to stay or residence permit in Indonesia.
By that, mixed marriage couple who apply for a credit to the Bank will be hampered by the regulations when they do not have marriage agreement in which a separate asset regulated inside. If you do not have the agreement mentioned before, you should consider to have join assets and by that, the Bank will not give a loan in accordance with that regulation.
How can ELSON help you?
ELSON Indonesia is a company that focus on providing comprehensive legal solution for expatriates, foreigner, and mix marriage couple in Indonesia.
Phone: 0819 3274 1 333
Author: Selfia Christiani, SIP