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Life is unpredictable. You and I both know that. 

One day, we’re planning for the future, and the next, we’re reminded of how fragile life can be. It’s not the most cheerful topic, but let’s talk about something that’s often overlooked yet incredibly important: signing a last will. 

In Indonesia, this single document can save your loved ones from unnecessary stress, disputes, and confusion when you’re no longer around. Trust me, it’s the ultimate life hack.

Why You Need a Last Will

Imagine this: you’ve worked hard your entire life, built a home, saved money, and maybe even invested in some property. Now, imagine all of that being tied up in legal battles because you didn’t leave clear instructions. Scary, right? That’s where a last will comes in. It’s your way of saying, “This is what I want to happen with everything I’ve worked for.”

In Indonesia, the legal framework for inheritance is a mix of civil law, Islamic law, and customary law. Without a last will, your estate will be distributed according to these laws, which might not align with your wishes. The Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPer) and the 1974 Marriage Law (Undang-Undang No. 1 Tahun 1974) provide the general rules for inheritance. For Muslims, the Islamic Compilation Law (Kompilasi Hukum Islam or KHI) adds another layer of regulations. 

Let’s break it down.

The Civil Code and Inheritance

The Civil Code is the backbone of Indonesia’s inheritance laws for non-Muslims. It divides heirs into groups based on their relationship to the deceased. First in line are the spouse and children, followed by parents and siblings, and then more distant relatives. If you don’t have a last will, your estate will be distributed among these groups according to the law.

But here’s the catch: the Civil Code doesn’t account for modern family dynamics. What if you want to leave something to a close friend or a charity? What if you want to ensure your spouse gets a larger share? Without a last will, you have no say in these matters. Your estate will be divided strictly according to the law, and that might not reflect your true intentions.

The 1974 Marriage Law

Now, let’s talk about the 1974 Marriage Law. This law governs marital property in Indonesia, and it’s crucial to understand how it affects your estate. Under this law, any assets acquired during marriage are considered joint property, unless there’s a prenuptial agreement stating otherwise. This means your spouse automatically has a claim to half of the marital assets, while the other half becomes part of your estate.

Here’s where things can get tricky. If you don’t have a last will, the distribution of your estate might lead to disputes among your heirs. For example, your children might feel entitled to a larger share, or your spouse might have to fight for their rightful portion. A last will can prevent these conflicts by clearly outlining who gets what.

Islamic Compilation Law

For Muslims in Indonesia, the Islamic Compilation Law takes precedence over the Civil Code. This law is based on Islamic principles and divides the estate into fixed shares for specific heirs. For example, a son typically receives twice the share of a daughter, and parents and spouses also have defined portions.

While the Islamic Compilation Law provides a clear framework, it doesn’t leave much room for flexibility. If you want to leave a portion of your estate to someone outside the prescribed heirs, you’ll need a last will. Under Islamic law, you can allocate up to one-third of your estate to non-heirs, but only if it’s explicitly stated in your will. Without it, your estate will be distributed strictly according to the law.

The Benefits of a Last Will

So, why should you bother with a last will? Let me give you a few reasons:

  1. Control.  A last will gives you the power to decide how your assets are distributed. You can ensure your loved ones are taken care of and that your wishes are respected.
  2. Clarity. By clearly outlining your intentions, you can prevent misunderstandings and disputes among your heirs. Trust me, family feuds over inheritance are more common than you think.
  3. Flexibility. A last will allows you to include people or organizations that wouldn’t normally inherit under the law. Want to leave something for your best friend or a charity? You can do that.
  4. Peace of Mind. Knowing that your affairs are in order can give you and your loved ones peace of mind. It’s one less thing to worry about in an already difficult time.

How to Create a Last Will in Indonesia

Creating a last will in Indonesia is easier than you might think. Here’s a step-by-step guide:

  1. Consult a Legal Expert. In Indonesia, a legal expert like Wijaya & Co will ensure that your will complies with the law and is legally binding.
  2. List Your Assets. Take stock of everything you own, including property, savings, investments, and personal belongings. This will help you decide how to distribute your estate.
  3. Choose Your Beneficiaries. Decide who will inherit your assets. This could include family members, friends, or even charities.
  4. Specify Your Wishes. Be as detailed as possible in your will. Clearly state who gets what and include any specific instructions, such as how you want your funeral to be conducted.
  5. Sign and Register Your Will. Once your will is complete, sign it in the presence of the two witnesses. Your team of legal experts at Wijaya & Co will take care of everything including  registering your will with the Ministry of Law to ensure it’s legally recognized.

Common Misconceptions About Last Wills

Let’s address a few myths that might be holding you back from signing a last will:

  1. “I’m too young for a will.” Life is unpredictable, and it’s never too early to plan for the future. If you have assets or dependents, you need a will.
  2. “I don’t have enough assets to bother.” Even if you don’t own much, a will can still make things easier for your loved ones. It’s not about the size of your estate; it’s about clarity and peace of mind.
  3. “My family will sort it out.” Unfortunately, inheritance disputes are all too common, even in the closest families. A will can prevent unnecessary conflict.

Final Thoughts

You and I both know that life is full of uncertainties. But one thing we can control is how we leave things for our loved ones. Signing a last will might not be the most exciting thing on your to-do list, but it’s one of the most important. It’s the ultimate hack for ensuring your wishes are respected and your family is taken care of.

So, what are you waiting for? Take the first step today. Consult a legal expert at Wijaya & Co, draft your will, and secure your legacy. Because when it comes to protecting your loved ones, there’s really only one hack: sign a last will.

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

28/05/2026 - 01:06

When it comes to estate planning in Indonesia, you and I both know it’s not just about dividing assets. It’s about making sure your loved ones are taken care of and your wishes are respected. Whether you’re planning for the future or just curious about your options, let’s explore the key aspects of estate planning in Indonesia together. We’ll look at the legal grounds, including the Civil Code, the 1974 Marriage Law, and the Islamic Compilation Law, to help you make informed decisions.

Why Estate Planning Matters

Before diving into the details, let’s talk about why estate planning is so important. Imagine this: you’ve worked hard your entire life, built a legacy, and accumulated assets. Without a proper plan, your loved ones could face unnecessary legal complications, disputes, or even financial hardship. Estate planning ensures your assets are distributed according to your wishes and provides peace of mind for you and your family.

In Indonesia, estate planning is especially crucial because the legal system recognizes different inheritance laws based on religion, ethnicity, and marital status. This means your approach to estate planning might differ depending on your circumstances.

Key Legal Grounds for Estate Planning in Indonesia

Indonesia’s legal framework for inheritance is rooted in three main sources: the Civil Code, the 1974 Marriage Law, and the Islamic Compilation Law. Let’s break these down.

1. Civil Code 

The Civil Code applies primarily to non-Muslim Indonesians and foreigners residing in Indonesia. It provides clear guidelines on how inheritance should be distributed. Here’s what you need to know:

  1. Heirs and Inheritance Shares. The Civil Code outlines a hierarchy of heirs, starting with the closest relatives like spouses, children, and parents. If you’re married with children, your spouse and children will share your estate equally.
  2. Forced Heirship. Under the Civil Code, certain heirs (like your children or spouse) are entitled to a mandatory portion of your estate. This means you can’t completely disinherit them, even if you want to.
  3. Wills. You can create a will to specify how you want your assets distributed. However, your will must comply with the forced heirship rules. If you fail to leave a will, your estate will be distributed according to the default rules in the Civil Code.

2. 1974 Marriage Law 

The 1974 Marriage Law plays a significant role in estate planning, especially for married couples. It governs how marital property is divided between spouses and their heirs. Here’s what you should keep in mind:

  1. Joint Property (Harta Bersama).  In Indonesia, assets acquired during marriage are considered joint property, unless otherwise agreed in a prenuptial agreement. Upon the death of one spouse, the surviving spouse is entitled to half of the joint property, while the other half is distributed to the heirs.
  2. Prenuptial Agreements.  If you and your spouse have a prenuptial agreement, it can affect how your assets are divided. For example, a prenuptial agreement might specify that each spouse retains ownership of their individual assets, even after marriage.
  3. Inheritance for Children. The Marriage Law ensures that children, whether born within or outside of marriage, have the right to inherit from their parents.

3. Islamic Compilation Law 

For Muslims in Indonesia, inheritance is governed by Islamic law, as outlined in the Islamic Compilation Law. This law is based on Sharia principles and provides specific rules for distributing assets. Here’s what you need to know:

  1. Faraid System.  The Islamic inheritance system, known as faraid, divides the estate into fixed shares for specific heirs, such as spouses, children, and parents. Male heirs typically receive a larger share than female heirs, reflecting traditional Islamic principles.
  2. Wasiat (Will). Under Islamic law, you can allocate up to one-third of your estate to non-heirs through a will. The remaining two-thirds must be distributed according to faraid rules.
  3. Hibah (Gifts). You can also distribute your assets during your lifetime through hibah. This allows you to transfer ownership of assets to your loved ones without waiting for inheritance proceedings.

Your Estate Planning Options

Now that we’ve covered the legal framework, let’s talk about your options for estate planning in Indonesia. Here are some practical steps you can take:

1. Draft a Will

Creating a will is one of the simplest ways to ensure your wishes are carried out. In your will, you can specify who gets what, appoint guardians for your children, and even leave instructions for funeral arrangements. Just remember to comply with the relevant inheritance laws, such as forced heirship rules under the Civil Code or the one-third limit under Islamic law.

2. Set Up a Prenuptial or Postnuptial Agreement

If you’re married or planning to get married, a prenuptial or postnuptial agreement can help clarify how your assets will be divided. This is especially important if you and your spouse have different citizenships or if you want to keep certain assets separate.

3. Use Hibah (Lifetime Gifts)

If you want to avoid potential disputes or legal complications, consider transferring assets to your heirs during your lifetime through hibah. This can be a great way to provide financial support to your loved ones while you’re still around.

4. Establish a Trust

Although not as common in Indonesia, setting up a trust can be an effective way to manage and distribute your assets. A trust allows you to appoint a trustee to oversee your estate and ensure your assets are used according to your wishes.

5. Consult a Legal Expert

Estate planning can be complex, especially with Indonesia’s diverse legal system. It’s always a good idea to consult a lawyer who specializes in inheritance law, and family law like Wijaya & Co. They can help you navigate the legal requirements and create a plan that suits your needs.

Challenges in Estate Planning

While estate planning offers many benefits, it’s not without its challenges. Here are a few potential hurdles you might face:

  1. Legal Conflicts. If your family members have different interpretations of inheritance laws, disputes can arise. This is especially common in cases involving mixed marriages or blended families.
  2. Tax Implications. Transferring assets can trigger tax obligations, such as inheritance tax or capital gains tax. Be sure to factor these costs into your estate plan.
  3. Changing Laws. Indonesia’s legal landscape is constantly evolving. It’s important to stay informed about any changes that could affect your estate plan.

Final Thoughts

You and I both know that estate planning isn’t just about money. It’s about protecting your legacy and ensuring your loved ones are cared for. Whether you’re drafting a will, setting up a trust, or simply learning about your options, taking the time to plan your estate is one of the most thoughtful things you can do.

In Indonesia, the legal framework may seem complex, but with the right guidance, you can create a plan that aligns with your values and priorities. So, why wait? Start your estate planning journey today and give yourself the peace of mind you deserve.

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

18/05/2026 - 01:06

Love has no boundaries. You and I both know that. It doesn’t care about nationality, religion, or race. But when it comes to marriage, especially in Indonesia, the law steps in to set some boundaries. 

If you’re in a mixed marriage, or thinking about it, you’ve probably heard about prenuptial agreements (prenups). These legal documents are becoming a game-changer for couples in Indonesia, especially those navigating the complexities of mixed marriages. 

Let’s dive into how prenups are reshaping this landscape and why they matter.

What is a Prenuptial Agreement?

A prenuptial agreement is a legal contract signed by a couple before they get married. It outlines how their assets and liabilities will be managed during the marriage and in the event of a divorce. 

In Indonesia, prenups are particularly important for mixed marriages, where one spouse is an Indonesian citizen and the other is a foreigner. Why? Because Indonesian laws, like the 1974 Marriage Law, the Islamic Compilation Law, and the 1960 Agrarian Law, impose specific restrictions that can affect your rights as a couple.

The Legal Landscape of Mixed Marriages in Indonesia

Before we get into how prenups are changing mixed marriages, let’s take a quick look at the legal framework. The 1974 Marriage Law is the cornerstone of marriage regulations in Indonesia. It requires that marriages comply with the religious laws of the couple and emphasizes the importance of mutual consent and equality. However, it also introduces some challenges for mixed marriages, particularly when it comes to property ownership.

The 1960 Agrarian Law states that only Indonesian citizens can own land in Indonesia. If you’re married to a foreigner and don’t have a prenup, your Indonesian citizenship doesn’t automatically grant you the right to own land. Instead, your assets could be considered joint property, which means your foreign spouse could indirectly gain rights to them. This is where a prenup becomes essential.

For Muslim couples, the Islamic Compilation Law adds another layer of complexity. It governs matters like inheritance and property division, which can differ significantly from civil law. Without a prenup, navigating these rules can be even more complicated.

Why Prenups Matter in Mixed Marriages

Now that we’ve covered the legal basics, let’s talk about why prenups are so important for mixed marriages in Indonesia. Imagine you and I are in a mixed marriage. Without a prenup, any property we acquire during the marriage could become joint property. This might sound fair, but it creates a problem under Indonesian law. Since foreigners can’t own land, our joint property could be at risk of being confiscated or sold under certain circumstances.

A prenup allows us to separate our assets, ensuring that I, as the Indonesian spouse, retain full ownership of any property we acquire in my name. This protects our assets and gives us the freedom to invest in property without worrying about legal complications.

How Prenups are Changing Mixed Marriages

Prenups are doing more than just protecting assets. They’re changing the way couples approach marriage in Indonesia. Here’s how:

1. Empowering Couples to Plan Ahead

You and I both know that planning for the future is essential in any marriage. Prenups encourage couples to have open and honest conversations about their finances, responsibilities, and expectations. This kind of transparency can strengthen your relationship and help you avoid misunderstandings down the road.

2. Protecting Property Rights

As we’ve discussed, property ownership is a major issue in mixed marriages. With a prenup, you can clearly define who owns what, ensuring that your assets are protected under Indonesian law. This is especially important if you plan to invest in property or start a business together.

3. Simplifying Legal Processes

Without a prenup, you might face legal hurdles if you ever need to divide your assets or settle disputes. A prenup provides a clear framework for resolving these issues, saving you time, money, and stress.

4. Encouraging Gender Equality

In some cases, prenups can help promote gender equality in marriage. By allowing both spouses to retain control over their own assets, prenups challenge traditional gender roles and empower women to take an active role in managing their finances.

5. Adapting to Modern Realities

Let’s face it: the world is changing, and so are marriages. Mixed marriages are becoming more common, and couples need legal tools that reflect their unique circumstances. Prenups are a modern solution to an age-old problem, helping couples navigate the complexities of love and law in a globalized world.

Common Misconceptions About Prenups

You might be thinking, “A prenup sounds like a great idea, but isn’t it unromantic?” This is a common misconception. Prenups aren’t about planning for divorce. They’re about protecting your future. Think of it as an insurance policy. You hope you’ll never need it, but it’s good to have it just in case.

Another misconception is that prenups are only for the wealthy. In reality, anyone can benefit from a prenup, especially in a mixed marriage. Whether you’re protecting a family home, a small business, or future investments, a prenup can provide peace of mind.

How to Create a Prenup in Indonesia

If you’re considering a prenup, it’s important to do it right. Here’s a quick guide to getting started:

  1. Consult a Lawyer. You’ll need a lawyer who specializes in Indonesian family law like Wijaya & Co to draft your prenup. They can help you navigate the legal requirements and ensure that your agreement is valid.
  2. Discuss Your Goals. Sit down with your partner and discuss what you want to include in your prenup. Be honest and open about your expectations.
  3. Sign Before Marriage. In Indonesia, a prenup must be signed before you get married. Once you’re married, it’s too late to create one.
  4. Register Your Prenup. After signing, your prenup must be registered with the local marriage registry office. This step is crucial to ensure that your agreement is legally binding.

Final Thoughts

You and I both know that love is the foundation of any marriage. But when it comes to mixed marriages in Indonesia, love alone isn’t enough. You need a solid legal foundation to protect your rights and your future. Prenuptial agreements are changing the way couples approach mixed marriages, offering a practical solution to the challenges posed by Indonesian law.

So, if you’re planning a mixed marriage, don’t be afraid to talk about prenups. They’re not just legal documents. They’re tools for building a strong, secure, and equal partnership. After all, love may be priceless, but a little legal protection never hurts.

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

08/05/2026 - 01:06

Life is unpredictable. You and I both know that. One day, everything seems perfect, and the next, life throws a curveball. It’s not something we like to think about, but planning for the future, especially for what happens after you’’re gone, is one of the most important things we can do for our loved ones. 

In Indonesia, signing a last will isn’t just a practical step. It’s a legal safeguard that can save your family from unnecessary stress and disputes. Let’s dive into why this is crucial, and how Indonesian laws like the Civil Code, the 1974 Marriage Law, and the Islamic Compilation Law come into play.

Why a Last Will Matters

Imagine this: you’ve worked hard your entire life, built a home, saved money, and maybe even started a business. You want to ensure that your loved ones benefit from your hard work. But without a last will, your assets might not be distributed the way you intended. In Indonesia, the absence of a last will means your estate will be divided according to the default rules of inheritance set by the law. While these rules aim to be fair, they might not align with your personal wishes.

A last will allows you to take control. It’s your chance to decide who gets what, how much, and when. But there’s another reason you should consider signing a last will in Indonesia: it helps prevent legal disputes among your heirs. Let’s face it! Money and property can sometimes bring out the worst in people. A clear, legally binding last will can minimize misunderstandings and conflicts, ensuring your family remains united.

The Legal Framework in Indonesia

Now, let’s talk about the legal side of things. In Indonesia, inheritance laws are influenced by three main legal systems: the Civil Code, Islamic law, and customary (adat) law. The system that applies to you depends on your religion, ethnicity, and sometimes even your marriage. Here’s how these laws shape the importance of a last will.

1. The Civil Code

The Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPer) is the primary legal framework for inheritance among non-Muslims. According to the Civil Code, if you don’t leave a last will, your assets will be distributed to your heirs based on a hierarchy. This typically includes your spouse, children, parents, and siblings.

While this might sound straightforward, it can get complicated. For example, what if you want to leave a portion of your estate to a close friend or a charity? Without a last will, that’s not possible under the Civil Code. Article 875 of the Civil Code explicitly states that a last will is the only legal way to allocate your assets to someone outside the default heirs.

By signing a last will, you can also specify how your assets should be divided among your heirs. Maybe you want to leave a larger share to a child who has been your primary caregiver or ensure that your spouse is financially secure. A last will gives you the flexibility to make these decisions.

2. The 1974 Marriage Law

The 1974 Marriage Law (Undang-Undang Perkawinan No. 1 Tahun 1974) also plays a significant role in inheritance matters, especially for married couples. Under this law, assets acquired during marriage are considered joint property (harta bersama). This means that when one spouse passes away, half of the joint property automatically belongs to the surviving spouse, while the other half is subject to inheritance laws.

However, complications can arise if there are children from a previous marriage or if the couple has not clearly documented their assets. A last will can help clarify these issues. For instance, you can use a last will to ensure that your children from a previous marriage receive a specific portion of your estate, while still providing for your current spouse.

The Marriage Law also allows couples to create a prenuptial agreement (perjanjian pranikah) to separate their assets. If you have such an agreement, it’s even more important to have a last will to ensure that your individual assets are distributed according to your wishes.

3. The Islamic Compilation Law

For Muslims in Indonesia, inheritance is governed by Islamic law, as outlined in the Islamic Compilation Law (Kompilasi Hukum Islam or KHI). Islamic inheritance law is based on the principle of faraid, which specifies fixed shares for each heir. For example, sons typically receive twice the share of daughters, and parents, spouses, and siblings also have specific entitlements.

While the faraid system is clear, it doesn’t always account for modern family dynamics. What if you want to leave a portion of your estate to a stepchild or a non-Muslim relative? Islamic law generally doesn’t allow this, but there’s a solution: a wasiat, or Islamic will. Under the KHI, you can allocate up to one-third of your estate to non-heirs through a wasiat.

By signing a wasiat, you can ensure that your personal wishes are respected while still adhering to Islamic principles. It’s a way to balance your faith with your unique family circumstances.

Avoiding Family Disputes

One of the biggest reasons to sign a last will in Indonesia is to prevent family disputes. You and I have probably heard stories of families torn apart by inheritance battles. These disputes often arise because the deceased didn’t leave clear instructions, leaving the heirs to interpret the law, and each other’s intentions, on their own.

A last will eliminates ambiguity. It’s a legal document that clearly states your wishes, leaving little room for misinterpretation. This is especially important in blended families, where multiple sets of heirs might have competing claims. For example, if you have children from different marriages, a last will can ensure that each child receives a fair share of your estate.

How to Create a Last Will in Indonesia

Creating a last will in Indonesia isn’t as complicated as you might think. Here’s a quick overview of the process:

  1. Choose the Right Type of Will. There are several types of wills in Indonesia, including holographic wills (written by hand) and testamentary wills that are registered with the probate office. Testamentary wills are the most secure and legally binding option.
  2. Consult a Legal Expert. It’s always a good idea to consult a lawyer who specializes in inheritance law, and family law like Wijaya & Co. They can help you draft a will that complies with Indonesian law and reflects your wishes.
  3. Register Your Will.  Once your will is finalized, it should be registered with the probate office. This ensures that it’s legally recognized and can be easily accessed when needed.
  4. Keep It Updated. Life changes: marriages, divorces, births, and deaths can all affect your inheritance plans. Make sure to update your will regularly to reflect your current circumstances.

Final Thoughts

You and I might not like to think about what happens after we’re gone, but planning for the future is one of the most loving things we can do for our families. In Indonesia, signing a last will isn’t just a personal decision. It’s a legal necessity that can protect your loved ones and ensure your wishes are respected.

Whether you’re guided by the Civil Code, the 1974 Marriage Law, or the Islamic Compilation Law, a last will gives you the power to take control of your legacy. So why wait? Take the first step today and give your family the gift of clarity and peace of mind.

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

01/05/2026 - 01:06

Indonesia is a land of opportunity. You and I both know that. With its growing economy, strategic location, and abundant natural resources, it’s no wonder businesses from all over the world are flocking here. 

But if you’re considering starting a business in Indonesia, let me tell you why incorporating a real estate company under KBLI 68111 (Real Estate Activities with Owned or Leased Property) is one of the smartest moves you can make.

The Booming Real Estate Market in Indonesia

First, let’s talk about the real estate market itself. Indonesia’s population is over 270 million and growing. This means there’s a constant demand for housing, commercial spaces, and industrial properties. Urbanization is on the rise, and cities like Jakarta, Surabaya, and Bali are expanding rapidly. Whether it’s residential developments, office buildings, or retail spaces, the opportunities in real estate are endless.

On top of that, the government is heavily investing in infrastructure projects like toll roads, airports, and seaports. These developments are driving up property values and creating even more opportunities for real estate companies. By incorporating a real estate business, you can tap into this booming market and ride the wave of growth.

Why Incorporate? The Legal and Practical Benefits

Now, you might be wondering, “Why should I incorporate a company instead of just running a business as an individual?” Great question. Incorporating a company in Indonesia, especially under KBLI 68111, comes with several key benefits.

1. Limited Liability Protection

When you incorporate a company, you create a separate legal entity. This means your personal assets are protected if something goes wrong with the business. Under The 2007 Company Law, as amended by the 2023 Jobs Creation Law, shareholders are only liable for the company’s debts up to the amount of their capital contribution. So, if the business faces financial trouble, your personal savings, home, or car won’t be at risk.

2. Easier Access to Financing

Banks and investors are more likely to work with incorporated companies than with individuals. When you incorporate a real estate company, you’ll have access to business loans, credit lines, and investment opportunities that can help you grow your business. Plus, having a formal company structure makes you look more credible and professional in the eyes of potential partners and clients.

3. Risk-Based Licensing Simplifies the Process

One of the best things about incorporating a real estate company in Indonesia right now is the government’s push to simplify business licensing. Thanks to Government Regulation No. 28 of 2025 on the Administration of Risk-Based Business Licensing, the process has become much more streamlined.

Under this regulation, businesses are categorized based on their level of risk. Real estate activities under KBLI 68111 are generally considered medium to low risk, which means you can benefit from a faster and more straightforward licensing process. This regulation is part of the government’s broader effort to attract investment and make Indonesia a more business-friendly environment.

4. Tax Benefits and Incentives

Incorporating a company also opens the door to various tax benefits and incentives. For example, you can deduct business expenses like office rent, employee salaries, and marketing costs from your taxable income. Additionally, the government often provides tax incentives for businesses in certain sectors, including real estate. By incorporating, you can take advantage of these opportunities and reduce your overall tax burden.

5. Professional Image and Credibility

Let’s face it: clients and partners are more likely to trust a company than an individual. When you incorporate a real estate business, you’re showing the world that you’re serious about what you do. This can help you attract high-value clients, secure lucrative deals, and build a strong reputation in the industry.

Understanding KBLI 68111: Real Estate Activities with Owned or Leased Property

Now that we’ve covered the benefits of incorporating, let’s dive into what KBLI 68111 is all about. KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, which is Indonesia’s Standard Industrial Classification. KBLI 68111 specifically refers to real estate activities involving owned or leased property.

This classification covers a wide range of activities, including:

  1. Buying, selling, and renting out residential, commercial, and industrial properties.
  2. Managing properties on behalf of clients.
  3. Developing real estate projects, such as housing complexes, office buildings, and shopping centers.

By incorporating a company under KBLI 68111, you’ll be officially recognized as a real estate business in Indonesia. This not only gives you legal standing but also allows you to operate within the framework of Indonesia’s business regulations.

The Legal Framework: What You Need to Know

Incorporating a real estate company in Indonesia involves complying with several legal requirements. Here’s a quick overview of the key laws and regulations you need to be aware of:

1. The 2007 Company Law, as Amended by the 2023 Jobs Creation Law

This law serves as the foundation for all companies in Indonesia. It outlines the requirements for establishing a company, including the minimum capital, shareholder structure, and corporate governance. The 2023 amendment introduced several changes to make it easier for businesses to incorporate and operate, such as reducing bureaucratic hurdles and simplifying reporting requirements.

2. Government Regulation No. 28 of 2025

This regulation is a game-changer for business licensing in Indonesia. By adopting a risk-based approach, it has significantly reduced the time and effort required to obtain a business license. For real estate companies under KBLI 68111, this means you can get your license faster and start operating sooner.

3. KBLI 68111

As mentioned earlier, this classification is specific to real estate activities. When you incorporate a company under this KBLI, you’ll need to ensure that your business activities align with the classification. This includes registering your company with the appropriate authorities and obtaining the necessary permits.

Steps to Incorporate a Real Estate Company in Indonesia

If you’re ready to take the plunge, your lawyer at Wijaya & Co will secure the following steps to incorporating a real estate company in Indonesia:

  1. Choose a Company Name. Pick a unique name for your company and your lawyer at Wijaya & Co will check its availability with the Ministry of Law and Human Rights.
  2. Prepare the Articles of Association. A lawyer at Wijaya & Co will  draft your company’s Articles of Association, which outline its purpose, structure, and governance.
  3. Obtain a Deed of Establishment. Your lawyer will have your Articles of Association notarized by a notary.
  4. Register with the Ministry of Law and Human Rights. Your lawyer at Wijaya & Co will submit your Deed of Establishment for approval.
  5. Obtain a Business Identification Number (NIB). This is a business license that your lawyer will retrieve and have it registered to get your NIB.
  6. Apply for the Necessary Permits. Depending on your business activities, you may need additional permits, such as a location permit or building permit. Your lawyer at Wijaya & Co will secure them for you. 

Conclusion: Why Wait?

You and I both know that opportunities don’t wait aroun d forever. With Indonesia’s booming real estate market, simplified licensing processes, and strong legal framework, there’s never been a better time to incorporate a real estate company under KBLI 68111. By taking this step, you’ll not only protect your personal assets but also position yourself for long-term success in one of the most dynamic industries in the country.

So, what are you waiting for? Let’s make your real estate dreams a reality. Incorporate your company today and start building a brighter future for yourself and your business.

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

28/04/2026 - 01:06

Life is unpredictable. You and I know that l. We work hard, build a family, and accumulate assets, but what happens to everything we’ve worked for when we’re no longer around? This is where the issue of intestacy comes in. Intestacy happens when someone passes away without leaving a will. 

In Indonesia, this can lead to confusion, disputes, and even legal battles among family members. But here’s the good news: there’s one simple solution to avoid all of this: creating a last will. 

Let’s dive into why having a last will is so important and how it works under Indonesian law.

The Problem with Intestacy

When someone dies without a will, their assets are distributed according to the default rules of inheritance. In Indonesia, these rules are based on a combination of the Civil Code, Islamic law, customary law (adat), and other legal frameworks like the 1974 Marriage Law and the 1960 Agrarian Law. While these laws aim to ensure fairness, they can often lead to complications.

For example, under the Civil Code, inheritance is divided equally among heirs in the same class (e.g., children or parents). However, Islamic law follows a different system, where male heirs typically receive a larger share than female heirs. Customary law, on the other hand, varies depending on the region and can sometimes conflict with national laws. This patchwork of legal systems can create confusion and disagreements among heirs, especially in cases where the deceased’s wishes were never clearly documented.

Imagine a scenario where a father passes away, leaving behind a house, some land, and a bank account. Without a will, his family might face months, or even years. of legal wrangling to determine who gets what. This can strain relationships and waste valuable time and money. But all of this can be avoided with a simple document: a last will.

What Is a Last Will?

A last will is a legal document that allows you to decide how your assets will be distributed after your death. It’s your chance to ensure that your loved ones are taken care of and that your wishes are respected. In Indonesia, the legal basis for making a will is found in the Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPerdata), specifically Articles 875 to 940. These articles outline the requirements for creating a valid will, including who can make a will, how it should be written, and who can inherit.

Under the Civil Code, a will must be made in writing and signed by the testator (the person making the will). It can be either an “olographic will” (handwritten and signed by the testator) or a “testamentary will” (prepared and signed in the presence of two witnesses). The testamentary will is the most common type in Indonesia because it provides legal certainty and is harder to contest.

Legal Grounds for a Last Will in Indonesia

Let’s take a closer look at the legal frameworks that support the creation of a last will in Indonesia:

1. Civil Code

The Civil Code is the primary legal reference for wills and inheritance in Indonesia. It allows individuals to distribute their assets as they see fit, provided they respect the “legitime portie” (mandatory portion) for certain heirs. For example, children and spouses are entitled to a minimum share of the inheritance, even if the will states otherwise. This ensures that close family members are not left out entirely.

2. 1974 Marriage Law

The 1974 Marriage Law (Law No. 1 of 1974) also plays a role in inheritance matters, particularly when it comes to marital property. Under this law, assets acquired during marriage are considered joint property (harta bersama) unless otherwise agreed in a prenuptial agreement. This means that when one spouse passes away, half of the joint property automatically belongs to the surviving spouse, while the other half is subject to inheritance laws. A will can help clarify how the deceased’s share of the property should be distributed.

3. 1960 Agrarian Law

The 1960 Agrarian Law (Law No. 5 of 1960) governs land ownership in Indonesia. It’s important to note that land ownership is subject to certain restrictions, especially for foreign heirs. For example, a foreigner cannot inherit land with a Hak Milik (ownership right) title. However, a will can specify alternative arrangements, such as selling the land and distributing the proceeds to the heirs. This can help avoid legal complications and ensure that the deceased’s wishes are carried out.

4. Islamic Compilation Law

For Muslims in Indonesia, inheritance is also governed by the Islamic Compilation Law (Kompilasi Hukum Islam or KHI). This law is based on Islamic principles and includes specific rules about how assets should be divided among heirs. For instance, a son typically receives twice the share of a daughter. However, a Muslim can still make a will, provided it does not violate Islamic principles. According to the KHI, a Muslim can allocate up to one-third of their estate to non-heirs or for charitable purposes through a will.

Why You Should Make a Last Will

Now that we’ve covered the legal foundations, let’s talk about why you and I should seriously consider making a last will. Here are some key benefits:

1. Avoid Family Disputes

A will provides clear instructions on how your assets should be distributed, reducing the risk of conflicts among your heirs. It’s a way to ensure that your loved ones are taken care of without unnecessary drama.

2. Respect Your Wishes

Without a will, your assets will be distributed according to default inheritance laws, which may not align with your wishes. A will gives you the freedom to decide who gets what, whether it’s a specific heir, a charity, or a close friend.

3. Simplify the Legal Process

A will can streamline the inheritance process, making it easier and faster for your heirs to access your assets. This is especially important if you own property, run a business, or have other complex assets.

4. Protect Vulnerable Heirs

If you have young children, a will allows you to appoint a guardian to take care of them in case both parents pass away. You can also set up a trust to manage their inheritance until they reach a certain age.

5. Plan for Special Circumstances

A will can address unique situations, such as providing for a disabled family member, ensuring the continuity of a family business, or making arrangements for foreign heirs.

How to Make a Last Will in Indonesia

Creating a will in Indonesia is relatively straightforward. Here’s a step-by-step guide:

  1. List Your Assets. Start by making a comprehensive list of your assets, including property, bank accounts, investments, and personal belongings.
  2. Decide on Your Beneficiaries. Think about who you want to inherit your assets. This could include family members, friends, or charitable organizations.
  3. Choose an Executor. The executor is the person responsible for carrying out the instructions in your will. Choose someone you trust, such as a family member, friend, or professional advisor.
  4. Consult a Lawyer. Work with a lawyer to draft your will. A lawyer like Wijaya & Co can ensure that your will complies with Indonesian law and is legally binding.
  5. Sign and Register Your Will. Once your will is finalized, sign it in the presence of the witnesses, and register your will to ensure it is recognized by the authorities.

Final Thoughts

You and I might not like to think about what happens after we’re gone, but planning for the future is one of the most responsible things we can do for our loved ones. A last will is more than just a legal document. It’s a way to protect your family, preserve your legacy, and ensure that your wishes are respected. 

By taking the time to create a will, you can avoid the pitfalls of intestacy and leave behind a lasting gift of clarity and peace of mind. So why wait? Let’s start planning today.

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

18/04/2026 - 01:06

You and I both know that planning for the future is essential, especially when it comes to matters of inheritance. But what happens when someone passes away without leaving a last will? 

In Indonesia, the absence of a last will doesn’t mean chaos. It simply means the law steps in to guide the process. One of the tools that can help in such situations, particularly when foreign elements are involved, is the affidavit of foreign law. 

Let’s dive into how this works and the legal framework behind it.

The Role of a Last Will in Indonesia

Before we talk about what happens when a last will is missing, let’s understand its role. A last will, or testament, is a legal document that allows someone to dictate how their assets will be distributed after their death. In Indonesia, the legal basis for a last will is found in the Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPer). Articles 875 to 940 of the Civil Code provide detailed rules on how a last will should be made, including who can create one, the formalities required, and how it can be revoked or amended.

A valid will ensures that the deceased’s wishes are respected. It can prevent disputes among heirs and provide clarity on the distribution of assets. However, not everyone creates a last will. In fact, many people pass away without leaving one, either because they didn’t think it was necessary or simply didn’t get around to it. That’s where the law steps in.

What Happens When There’s No Last Will?

If someone dies without a last will, the inheritance process in Indonesia follows the rules of intestate succession. This means the distribution of assets is governed by the law, rather than the deceased’s personal wishes. The legal grounds for intestate succession are found in the Civil Code, the 1974 Marriage Law (Undang-Undang Nomor 1 Tahun 1974 tentang Perkawinan), and the Islamic Compilation Law (Kompilasi Hukum Islam or KHI), depending on the deceased’s religion and marital status.

Civil Code Provisions

For non-Muslims, the Civil Code applies. Articles 832 to 1130 of the Civil Code outline the hierarchy of heirs. The primary heirs are the spouse, children, and parents of the deceased. If none of these heirs exist, the inheritance passes to siblings, grandparents, or other relatives. The distribution is based on the principle of erfstelling, which ensures that closer relatives inherit before more distant ones.

Islamic Inheritance Law

For Muslims, inheritance is governed by Islamic law, as codified in the KHI. The KHI is based on Islamic principles and provides specific rules for the distribution of assets. For example, male heirs generally receive a larger share than female heirs, and the shares are calculated based on the Quranic verses on inheritance. The KHI also recognizes the concept of faraidh, which determines the fixed shares for certain heirs.

1974 Marriage Law

The 1974 Marriage Law also plays a role in inheritance matters, particularly when it comes to marital property. According to Article 35 of the Marriage Law, assets acquired during the marriage are considered joint property (harta bersama). Upon the death of one spouse, the surviving spouse is entitled to half of the joint property, while the other half is distributed among the heirs.

The Affidavit of Foreign Law: A Solution for Cross-Border Cases

Now, let’s talk about the affidavit of foreign law. This document becomes crucial when the deceased has ties to another country, such as foreign citizenship, assets abroad, or heirs living overseas. An affidavit of foreign law is essentially a legal statement that explains the inheritance laws of the Republic of Indonesia. It’s used to help foreign courts or lawyers understand how Indonesian laws apply to a specific case.

For example, imagine a situation where a foreign national passes away in Indonesia without a last will. Their heirs may need to prove how inheritance laws in Indonesia work. This is where the affidavit of foreign law comes in. It serves as evidence of Indonesia's legal system and helps ensure that the inheritance process respects both Indonesian and foreign laws.

Legal Basis for the Affidavit of Foreign Law

The use of Indonesia’s affidavits of foreign law is not explicitly regulated by a single law. However, it is recognized as part of the broader principles of private international law. Article 16 of the General Provisions of Legislation (Algemene Bepalingen van Wetgeving or AB) states that foreign laws can be applied if they are relevant to a case. This principle is also supported by Article 18 of the Civil Code, which allows for the recognition of foreign legal systems in certain situations.

In practice, affidavits of foreign law are often prepared by legal experts or lawyers who are familiar with the foreign legal system, like Wijaya & Co. These affidavits must be notarized. They are then submitted to the  foreign court or lawyers handling the inheritance case in foreign countries, like Singapore, Australia, or the United States.

Why the Affidavit Matters

You might wonder why an affidavit of foreign law is necessary. Can’t the foreign courts or lawyers simply look up the Indonesian laws themselves? The answer lies in the complexity of legal systems. Laws vary widely from one country to another, and interpreting them requires expertise. An affidavit of foreign law provides a clear, authoritative explanation of the relevant laws, saving time and reducing the risk of misinterpretation.

Moreover, the affidavit ensures that the rights of all parties are protected. For instance, if the deceased was a foreign national, their heirs may have rights under Indonesian laws that differ from their home country’s laws . The affidavit helps bridge this gap and ensures a fair outcome.

Challenges and Considerations

While the affidavit of foreign law is a valuable tool, it’s not without challenges. One issue is the cost. Preparing an affidavit can be expensive, especially if it involves hiring Indonesian legal experts or translating documents. Another challenge is the potential for conflicting laws. For example, Indonesian law may prioritize certain heirs, while foreign law may have a different hierarchy. Resolving these conflicts requires careful negotiation and, in some cases, court intervention.

Additionally, the affidavit must be accurate and comprehensive. Any errors or omissions could lead to delays or disputes. That’s why it’s important to work with qualified professionals who understand both Indonesian and foreign legal systems.

Conclusion

You and I can agree that inheritance matters are never easy, especially when there’s no last will to guide the process. But in Indonesia, the law provides a clear framework to ensure that assets are distributed fairly. Whether it’s through the Civil Code, the 1974 Marriage Law, or the Islamic Compilation Law, the rights of heirs are protected.

When foreign elements come into play, the affidavit of foreign law becomes an essential tool. It helps navigate the complexities of cross-border cases and ensures that the inheritance process respects both Indonesian and foreign laws. While it may involve some challenges, the affidavit ultimately serves as a bridge between legal systems, providing clarity and fairness in difficult times.

So, if a last will doesn’t exist, don’t worry. The law has your back, and so does the affidavit of foreign law. Together, they ensure that the wishes of the deceased are honored and the rights of the heirs are upheld.

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

15/04/2026 - 01:06

You’ve just received news from your child’s new school that they require you to transfer guardianship. It’s a surprising request, and you might be wondering, “What does this mean for me and my child?” 

Don’t worry! You and I will walk through this together. 

By the end of this, you’ll understand what guardianship transfer entails, why schools might ask for it, and how you can handle it while staying on the right side of the law.

What Does Guardianship Transfer Mean?

First, let’s break down what transferring guardianship actually means. Guardianship refers to the legal responsibility for a child’s care, including their education, health, and overall well-being. As a parent, you’re automatically your child’s guardian under Indonesian law. However, in some cases, schools or institutions may require a formal guardianship transfer to another individual, perhaps a relative, a trusted family friend, or even the school itself.

This doesn’t mean you’re giving up your parental rights. Instead, it’s a legal arrangement that allows someone else to act on your behalf in specific situations, such as signing school documents, making decisions about your child’s education, or handling emergencies.

Why Would a School Require Guardianship Transfer?

You might be wondering why a school would ask for this. Schools usually request guardianship transfers when a child is living away from their parents. For example, if your child is attending a boarding school in another city or staying with relatives while you’re working abroad, the school may need a local guardian to handle day-to-day matters.

This requirement ensures that someone is legally authorized to make decisions for your child when you’re not physically present. It’s not about questioning your role as a parent. It’s about making sure your child’s needs are met efficiently and legally.

What Does the Law Say About Guardianship?

Now, let’s dive into the legal side of things. 

In Indonesia, guardianship is governed by several laws, including the 1974 Marriage Law, the Child Protection Law, and Government Regulation Number 29 of 2019. These laws outline who can be a guardian, how guardianship is transferred, and the responsibilities involved.

1. The 1974 Marriage Law

Under the 1974 Marriage Law, parents are the natural guardians of their children. This means you have the primary responsibility for your child’s upbringing, education, and welfare. However, the law also recognizes that guardianship can be transferred under certain circumstances, such as when parents are unable to fulfill their duties due to distance or other factors.

2. The Child Protection Law

The Child Protection Law emphasizes the importance of a child’s best interests. Any decision regarding guardianship must prioritize the child’s safety, education, and overall well-being. If you’re transferring guardianship, you’ll need to ensure that the new guardian is capable of meeting these needs.

3. Government Regulation Number 29 of 2019

This regulation provides detailed guidelines on the requirements and procedures for appointing a guardian. It specifies that guardianship transfers must be formalized through a court decision. This ensures that the process is transparent and legally binding, protecting both the child and the parents.

Steps to Transfer Guardianship

If your child’s school requires you to transfer guardianship, here’s what you need to do:

1. Understand the School’s Requirements

Start by asking the school for a clear explanation of why they need the guardianship transfer. Request a list of documents or forms they require. This will help you understand their specific needs and ensure you’re taking the right steps.

2. Choose a Suitable Guardian

The next step is to decide who will act as your child’s guardian. This should be someone you trust completely, perhaps a close relative or a family friend who lives near the school. Make sure they’re willing and able to take on this responsibility.

3. Prepare the Necessary Documents

To transfer guardianship, you’ll need to prepare several documents, including:

  1. A written statement from you as the parent, explaining the reasons for the transfer.
  2. A statement of consent from the new guardian.
  3. Copies of your ID, the child’s birth certificate, and the guardian’s ID.

4. File a Petition with the Court

Under Government Regulation Number 29 of 2019, guardianship transfers must be approved by a court. You’ll need the assistance from a lawyer like Wijaya & Co navigate the legal system in Indonesia. Your lawyer needs to file a petition at the local district court, outlining the reasons for the transfer and providing all the necessary documents.

The court will review your case to ensure that the transfer is in your child’s best interests. If everything is in order, they’ll issue a decision formalizing the guardianship arrangement.

5. Notify the School

Once the court has approved the transfer, provide the school with a copy of the court decision. This will give them the legal assurance they need to work with the new guardian.

Things to Keep in Mind

While the process might seem overwhelming, it’s important to stay calm and focused. Here are a few tips to help you navigate this situation:

  1. Communicate Openly.  Keep an open line of communication with the school, the new guardian, and your child. Make sure everyone understands their roles and responsibilities.
  2. Seek Legal Advice. If you’re unsure about any part of the process, don’t hesitate to consult a lawyer like Wijaya & Co. They can guide you through the legal requirements and help you avoid potential pitfalls.
  3. Prioritize Your Child’s Well-Being. Remember, the goal of this process is to ensure your child’s safety and success. Choose a guardian who will provide the love and support your child needs.

What Happens After the Transfer?

Once the guardianship transfer is complete, the new guardian will have the legal authority to act on your behalf in matters related to your child’s education and welfare. However, this doesn’t mean you’re no longer involved. You’ll still be your child’s parent, and you can stay actively engaged in their life.

Keep in touch with the school and the new guardian to stay updated on your child’s progress. Regular communication will help you address any issues that arise and ensure your child feels supported, no matter where they are.

Final Thoughts

Transferring guardianship might feel like a big step, but it’s often a practical solution to ensure your child’s needs are met when you’re not physically present. By following the legal guidelines and choosing a trusted guardian, we can handle this process smoothly and confidently.

Remember, you’re not alone in this. The laws are designed to protect your child’s best interests, and there are resources available to help you along the way. So take a deep breath, gather the necessary documents, and take it one step at a time. You’ve got this!

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

08/04/2026 - 13:06

Imagine this: You’ve worked hard your entire life, built a legacy, and accumulated assets to secure your family’s future. But what happens if you pass away without leaving a will? 

In Indonesia, the answer lies in intestacy laws, which dictate how your estate will be distributed. While these laws aim to ensure fairness, they may not always align with your personal wishes. That’s where a last will comes in, a powerful tool to take control of your estate and ensure your legacy is handled exactly as you envision.

Let’s dive into how intestacy works in Indonesia, the legal framework surrounding wills, and why creating one could be the best decision you and I can make for our loved ones.

What Happens Under Intestacy in Indonesia?

If you pass away without a will, your estate will be distributed according to Indonesia’s intestacy laws. These laws are primarily governed by the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPer), the 1974 Marriage Law, and, for Muslims, the Islamic Compilation Law (Kompilasi Hukum Islam or KHI).

Under the Civil Code, inheritance is distributed to heirs based on a hierarchy. The first priority goes to your spouse and children, who share the estate equally. If you don’t have children, your parents and siblings step in as heirs. This system may seem straightforward, but it doesn’t account for specific wishes you might have, such as leaving a portion of your estate to a close friend, a charity, or even a stepchild.

For Muslims, the Islamic Compilation Law applies. It follows the faraid system, which divides inheritance based on Islamic principles. Male heirs generally receive a larger share than female heirs, and certain relatives may be excluded entirely. While this system aligns with religious values, it may not reflect your personal preferences or modern family dynamics.

The 1974 Marriage Law also plays a role, particularly in determining the division of marital property. Assets acquired during marriage are considered joint property and are divided equally between the surviving spouse and the deceased’s estate. However, this can get complicated if there are disputes among heirs or if the deceased had multiple marriages.

Why Intestacy Might Not Work for You

While intestacy laws aim to provide a clear structure, they don’t always cater to individual circumstances. Let’s say you want to leave a larger portion of your estate to a child with special needs or ensure your business is passed on to someone capable of running it. Intestacy laws won’t allow for such specific arrangements.

Additionally, intestacy can lead to conflicts among heirs. Disputes over property division are common, especially in blended families or when significant assets are at stake. Without a clear will, your loved ones may face lengthy legal battles, adding emotional and financial stress during an already difficult time.

The Legal Grounds for Creating a Last Will

Creating a last will gives you the power to decide how your estate will be distributed. In Indonesia, the legal basis for drafting a will is found in the Civil Code, specifically Articles 875 to 940. These articles outline the types of wills, the formalities required, and the limitations on how much of your estate you can allocate freely.

Under the Civil Code, you can choose from three types of wills:

  1. Holographic Will. Written entirely by hand and signed by you.
  2. Testamentary Will. Drafted and signed with two witnesses present.

Each type has its own requirements, but the testamentary will is the most secure and widely used in Indonesia. It minimizes the risk of disputes and ensures your wishes are legally binding.

However, there are restrictions to keep in mind. The Civil Code imposes a "reserved portion" (legitieme portie) to protect the rights of certain heirs, such as your spouse, children, and parents. This means you can only freely allocate the portion of your estate that exceeds the reserved portion.

For Muslims, the Islamic Compilation Law allows for a will but limits its scope. You can only bequeath up to one-third of your estate to non-heirs, unless all heirs agree to a larger allocation. This ensures that the faraid system remains intact while giving you some flexibility.

How the 1974 Marriage Law Affects Your Estate

The 1974 Marriage Law (Law No. 1 of 1974) plays a significant role in inheritance matters, particularly when it comes to marital property. According to Article 35, assets acquired during marriage are considered joint property, while assets owned before marriage or received as gifts or inheritance are considered personal property.

If you pass away, half of the joint property automatically belongs to your surviving spouse. The other half becomes part of your estate and is distributed among your heirs. This division can get complicated if there are disputes over what constitutes joint versus personal property. By creating a will, you can clarify these distinctions and prevent potential conflicts.

The Role of the Islamic Compilation Law

For Muslims, the Islamic Compilation Law provides a detailed framework for inheritance. It follows the principles of faraid, which prioritize male heirs and allocate specific shares to each relative. For example, a son typically receives twice the share of a daughter, and parents receive a fixed portion of the estate.

While this system is rooted in religious values, it may not always align with modern family dynamics. For instance, stepchildren and adopted children are not considered heirs under faraid. If you want to provide for them, a will is essential.

The Islamic Compilation Law also allows for a wasiat (will), but with limitations. As mentioned earlier, you can only allocate up to one-third of your estate to non-heirs. This makes it crucial to plan carefully and ensure your wishes are legally enforceable.

Why You Should Create a Last Will

Now that we’ve covered the legal framework, let’s talk about why creating a will is so important. Here are some key benefits:

  1. Control Over Your Estate. A will lets you decide who gets what, ensuring your assets are distributed according to your wishes.
  2. Avoiding Conflicts. By clearly outlining your intentions, you can minimize disputes among heirs and prevent legal battles.
  3. Providing for Non-Heirs. A will allows you to leave assets to people or organizations outside the intestacy system, such as stepchildren, friends, or charities.
  4. Protecting Vulnerable Loved Ones. You can allocate a larger share to dependents with special needs or ensure your business is passed on to a capable successor.
  5. Peace of Mind. Knowing your affairs are in order gives you and your loved ones peace of mind.

How to Get Started

Creating a will in Indonesia is a straightforward process, but it’s important to follow the legal requirements to ensure its validity. Here’s how you can get started:

  1. Consult a Lawyer. Seek professional advice from a lawyer like Wijaya & Co to understand your options and draft a legally binding will.
  2. List Your Assets. Make a comprehensive list of your assets, including property, bank accounts, investments, and personal belongings.
  3. Identify Your Beneficiaries.  Decide who will inherit your assets and in what proportions.
  4. Choose an Executor. Appoint someone you trust to carry out your wishes and manage your estate.
  5. Sign and Register Your Will. Follow the formalities required for your chosen type of will, and consider registering it with a probate office for added security. Wijaya & Co can help you with these. 

Final Thoughts

You know how unpredictable life can be. While it’s not easy to think about what happens after we’re gone, taking the time to create a last will is one of the most thoughtful things we can do for our loved ones. It’s a way to ensure our hard-earned legacy is preserved and our wishes are respected.

In Indonesia, the legal framework provides ample room to take control of your estate, whether through the Civil Code, the 1974 Marriage Law, or the Islamic Compilation Law. By creating a will, you can navigate these laws and make sure your estate is distributed exactly as you intend.

So, let’s take that step today. After all, it’s not just about protecting your assets. It’s about protecting the people you care about most.

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

01/04/2026 - 01:06

Family is the cornerstone of our lives. You and I both know that.  It’s where we find love, support, and belonging. But what happens when the legal recognition of a child becomes a question mark? 

In Indonesia, child legalization is a topic that goes beyond just paternity privileges. It’s about ensuring every child’s rights are respected and protected, regardless of the circumstances of their birth. 

Let’s dive into this issue together and explore the legal framework, the challenges, and the progress Indonesia has made.

The Legal Backbone: 1974 Marriage Law

To understand child legalization in Indonesia, we need to start with the 1974 Marriage Law. This law is the foundation of family law in the country. It sets the rules for marriage, divorce, and the legal status of children. According to Article 42 of the law, a legitimate child is one born within a legal marriage or as a result of a valid marriage. This means that children born out of wedlock face a different legal status, which can affect their rights.

For example, a legitimate child has the right to inherit from both parents, carry the father’s name, and receive financial support. On the other hand, children born outside of marriage often face legal hurdles in claiming these rights, particularly when it comes to inheritance and recognition by their biological father. This is where the concept of paternity privileges comes into play.

Paternity Privileges: A Narrow Perspective

When we talk about child legalization, many people immediately think of paternity privileges. These are the rights and responsibilities a father has toward his child, such as providing financial support, education, and emotional care. In cases where a child is born out of wedlock, establishing paternity becomes crucial for the child to access these privileges.

But here’s the thing, you and I both know that child legalization is about more than just paternity. It’s about the child’s overall well-being and ensuring they have the same opportunities as any other child. This is where Indonesia’s legal system has started to evolve, thanks to some groundbreaking decisions by the Constitutional Court.

A Landmark Decision: Constitutional Court Ruling No. 46/PUU-VIII/2010

In 2012, the Constitutional Court made a game-changing decision with Ruling No. 46/PUU-VIII/2010. This ruling expanded the rights of children born out of wedlock. It stated that these children have a civil relationship not only with their mother but also with their biological father, provided there is scientific evidence (like DNA testing) or other legal proof of paternity.

This decision was a significant step forward. It acknowledged that every child, regardless of their parents’ marital status, has the right to be recognized and supported by both parents. It also challenged the traditional view that only children born within a legal marriage are entitled to full legal rights.

You and I can agree that this ruling was a win for children’s rights. It showed that the law could adapt to changing social realities and prioritize the best interests of the child. However, implementing this decision hasn’t been without challenges.

The Challenges of Implementation

While the Constitutional Court’s ruling was a breakthrough, putting it into practice has been another story. One of the main challenges is the stigma surrounding children born out of wedlock. In many communities, these children and their mothers face discrimination, which can make it difficult to pursue legal recognition.

Another issue is the legal process itself. Establishing paternity often requires DNA testing, which can be expensive and time-consuming. For many families, especially those from lower-income backgrounds, this creates a barrier to accessing justice.

There’s also the question of awareness. How many people know about this ruling and their rights under it? You and I might have access to legal information, but for many Indonesians, especially those in rural areas, this knowledge is out of reach. This highlights the need for better education and outreach efforts to ensure that everyone can benefit from the law.

Beyond Paternity: A Holistic Approach to Child Legalization

So, where do we go from here? How can Indonesia move beyond paternity privileges and take a more holistic approach to child legalization? Here are a few ideas:

  1. Strengthening Legal Protections. The law should continue to evolve to protect all children, regardless of their parents’ marital status. This could include simplifying the process for establishing paternity and ensuring that children born out of wedlock have the same inheritance rights as legitimate children.
  2. Raising Awareness. You and I know that knowledge is power. Public education campaigns can help inform parents about their rights and responsibilities. This could include workshops, social media campaigns, and partnerships with community organizations.
  3. Reducing Stigma. Changing societal attitudes is just as important as changing the law. We need to create a culture where every child is valued and respected, regardless of the circumstances of their birth. This starts with education and open conversations about the issue.
  4. Improving Access to Justice. Legal processes should be accessible to everyone, not just those who can afford them. This could involve subsidizing DNA testing or providing free legal aid for families seeking child legalization.

The Bigger Picture: Children’s Rights

At the end of the day, child legalization is about more than just legal status. It’s about recognizing every child’s inherent dignity and worth. It’s about ensuring they have access to education, healthcare, and a safe and loving environment. And it’s about giving them the tools they need to build a bright future.

You and I both want to see a world where every child has the chance to thrive. In Indonesia, progress is being made, but there’s still work to be done. By continuing to push for legal reforms, raising awareness, and challenging societal norms, we can create a system that truly puts children first.

Conclusion: A Shared Responsibility

Child legalization in Indonesia is a complex issue, but it’s one that affects us all. Whether you’re a parent, a policymaker, or just someone who cares about children’s rights, we all have a role to play in creating a fairer and more inclusive society.

The 1974 Marriage Law and the Constitutional Court’s groundbreaking decision have laid the groundwork for change. Now it’s up to us to build on that foundation and ensure that every child, regardless of their circumstances, has the opportunity to succeed.

So let’s work together, you and I, to make this vision a reality. After all, when we invest in our children, we’re investing in the future of our nation. And that’s a cause worth fighting for.

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

28/03/2026 - 01:06
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