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Estate planning in Indonesia requires careful attention, especially for foreigners holding assets here. Indonesian law has its own framework for wills, and it does not automatically align with international estate planning rules.
A notary in Indonesia can only prepare a testament covering assets located within Indonesia. For example, if a foreign investor owns shares in a PT PMA and also a property lease in Bali, these can be included in an Indonesian will. Assets abroad must be dealt with in a separate will be prepared in the relevant jurisdiction.
Foreign wills can be recognised in Indonesia, but only under strict conditions. The will must be a notarial deed, legalised or apostilled, translated into Indonesian by a sworn translator, and registered with the Central Will Registry. Without registration, the will is deemed non-existent when the testator dies. Even then, it will only apply to assets located in Indonesia. This is why having a local will in Indonesia is strongly advised, even if a valid foreign will already exists.
Indonesian law recognises two types of wills:
While an open will takes longer to prepare, its execution is more straightforward. By contrast, a closed will is quicker to draft but more burdensome to execute.
To avoid conflicts between jurisdictions, the safest approach is to prepare two separate wills: one covering Indonesian assets and another covering assets abroad. This ensures clarity and avoids delays for heirs when the estate is executed.
How assets can be inherited in Indonesia depends on the legal framework around each type of property:
Consider a foreign investor who holds a villa lease in Canggu under leasehold, shares in a PT PMA, and a bank account in Jakarta. To ensure a smooth transfer, these should be listed in an Indonesian will. At the same time, their house in France and offshore account would need to be covered under a separate will in France.
Estate planning in Indonesia is not only about safeguarding assets but also about preventing unnecessary complications for heirs. For foreign investors, the key is coordination across jurisdictions. Having an Indonesian will for local assets is the best way to ensure a seamless process.
At Smart Advisory Solutions, we guide foreign investors through every step of estate planning in Indonesia. Our team can help draft a will tailored to your assets, and we accompany you to the notary to ensure the document is properly executed. Reach out to us today to protect your investments and give your heirs peace of mind.
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