How Affidavit of Foreign Law in Indonesia Works in Distributing Your Estates After You’re Gone

When we think about what happens to our assets after we’re gone, it’s not always a comfortable topic, but it’s an important one. 

If you’re living in Indonesia and have assets outside of Indonesia, you might have heard about something called an "Affidavit of Foreign Law." It’s a legal tool that can help ensure your estate is distributed according to your wishes, especially if you’re a foreigner or have ties to another country. 

Let’s break it down together, step by step, so you can understand how it works and why it might be relevant to you.

What Is an Affidavit of Foreign Law?

An affidavit of foreign law is essentially a legal document that explains how the inheritance laws of the Republic of Indonesia apply to your estate. It’s often used in foreign countries when someone’s estate involves foreign elements, such as a foreign national who owns property in Indonesia or an Indonesian citizen who wants their estate located in another country to be distributed according to the laws of the Republic of Indonesia.

This document is usually prepared by a legal expert, like a lawyer at Wijaya & Co, who is familiar with the Indonesian law in question. It serves as a guide for foreign courts or lawyers to understand how the Indonesian law should be applied to your estate. Without this affidavit, there could be confusion or even disputes about which laws should govern the distribution of your assets.

Why Does It Matter?

Indonesia has its own set of inheritance laws, which are primarily based on the Civil Code, the 1974 Marriage Law, and the Islamic Compilation Law (for Muslims). These laws determine how estates are divided among heirs. However, if you want your estate to be distributed according to the laws of Indonesia, you’ll need to make that clear. That’s where the affidavit of foreign law comes in. It bridges the gap between foreign law and the Indonesian law you want to apply.

For example, let’s say you’re a foreigner married to an Indonesian citizen, and you own property in Bali. If you pass away, Indonesian law might apply to your estate unless you’ve specified otherwise. By providing an affidavit of foreign law, you can ensure that Indonesia’s inheritance laws are taken into account.

Legal Grounds for Inheritance in Indonesia

Before we dive deeper into how the affidavit works, let’s look at the legal framework for inheritance in Indonesia. There are three main sources of law that govern inheritance:

1. The Civil Code. The Civil Code applies to non-Muslims in Indonesia. It outlines how estates should be divided among heirs, including spouses, children, and other relatives. For example, Article 830 of the Civil Code states that inheritance is opened by death, and it’s passed to the heirs by law or by a valid will.
2. The 1974 Marriage Law. This law governs marital property and inheritance for married couples. It distinguishes between joint property (assets acquired during the marriage) and personal property (assets owned before the marriage or acquired through inheritance or gifts). When one spouse passes away, the surviving spouse is entitled to a share of the joint property.
3. The Islamic Compilation Law. For Muslims, inheritance is governed by Islamic law, as outlined in the Islamic Compilation Law. This law is based on Sharia principles and includes specific rules about how estates should be divided among heirs. For instance, male heirs typically receive a larger share than female heirs, but the exact distribution depends on the family structure.

How the Affidavit of Foreign Law Fits In

Now that we’ve covered the basics of Indonesian inheritance law, let’s talk about how the affidavit of foreign law works in practice. If you want your estate to be distributed according to Indonesian law, you’ll need to take the following steps:

1. Prepare a Valid Will

The first step is to create a will that clearly states your wishes. Under Article 875 of the Civil Code, a will is a legal document that allows you to determine how your estate will be distributed after your death. Make sure your will specifies that you want Indonesian law to apply and outlines how your assets should be divided.

If you’re a Muslim, you’ll also need to consider the Islamic Compilation Law, which limits the portion of your estate that can be distributed through a will. According to Article 195, you can only allocate up to one-third of your estate through a will, while the remaining two-thirds must follow Sharia principles.

2. Obtain the Affidavit of Foreign Law

Next, you’ll need to work with a legal expert like Wijaya & Co to prepare the affidavit of foreign law. This document should explain the relevant Indonesian inheritance laws and how they apply to your estate. For example, if you’re a U.S. citizen, the affidavit might outline how Indonesian  inheritance laws govern the distribution of your assets.

The affidavit should be prepared in both the original language and an official Indonesian translation. This ensures that foreign courts or lawyers can understand and apply the Indonesian law correctly.

3. Submit the Affidavit to the Foreign Court or Lawyers

Once the affidavit is ready, it needs to be submitted to the relevant authority in the foreign country. If your estate involves property or other significant assets, this is usually done through a foreign lawyer or the foreign court. The affidavit will serve as a reference for how your estate should be distributed.

Keep in mind that the foreign court or lawyer consider Indonesian law when reviewing your case. However, the affidavit provides a legal basis for Indonesian foreign law, which can help ensure your wishes are respected.

Challenges and Considerations

While the affidavit of foreign law can be a powerful tool, there are some challenges to keep in mind:

1. Conflict of Laws. Foreign courts may prioritize local laws over foreign laws, especially if there’s a conflict between the two. For example, if your will contradicts the Islamic Compilation Law, the foreign court may choose to follow Sharia principles instead.
2. Validity of the Will. Your will must comply with both Indonesian law. If it’s not properly drafted, it could be challenged or even declared invalid.
3. Legal Costs. Preparing an affidavit of foreign law and navigating the legal process can be expensive. It’s important to budget for these costs and work with a qualified legal expert like Wijaya & Co to avoid mistakes.

Why You Should Act Now

If you haven’t already made plans for your estate, now is the time to start. Whether you’re a foreigner living in Indonesia, an Indonesian citizen with assets abroad, or part of a mixed-nationality family, an affidavit of foreign law can help protect your loved ones and ensure your wishes are honored.

By taking the time to prepare a valid will and obtain the necessary legal documents, you can avoid unnecessary disputes and provide peace of mind for yourself and your family. Remember, the laws surrounding inheritance can be complex, but with the right guidance, you can navigate them successfully.

In the end, you and I both know that planning for the future is about more than just legal documents. It’s about taking care of the people we love. So let’s make sure your estate is in good hands, no matter where life takes you.

My name is Asep Wijaya, writing for Wijaya & Co. We orchestrate to assist you navigate. Thank you for reading my posts.