Posts from the “Article” Category

Indonesian Valuation Standard (SPI) Edition VI – 2015

Posted on January 1, 2016

Effective from 1 January 2016, the Indonesian Valuation Standard (Standar Penilai Indonesia/”SPI”) has been updated from Indonesian Valuation Standard (SPI) 2013 to Indonesian Valuation Standard (SPI) Edition VI – 2015.  SPI is mandatory for all valuers who are practicing valuation in Indonesia.  The standard is adhered in connection with the Indonesian Valuers Code of Ethics (Kode Etik Penilai Indonesia/KEPI).  SPI is made by KPSPI. The Purpose of SPI The purpose of SPI is as follow: Encourage valuers to carefully define and understand the needs and requirements of the client, and to provide certainty to the assessor that the assessor is equipped with an adequate assessment standards to meet those needs. Promote the use of valuation basis and consistent assumption in the assessment and selection of…

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Indonesian Valuation Standards 2013

Posted on May 17, 2013

The Indonesian Society of Appraisers (ISA) has just issued a new valuation standard in 25 April 2013.  The board claim that the standard adhere to the International Valuation Standard 2011 that is issued by International Valuation Standards Council in July 2011, and using references from other standards around the world, that is adjusted to the needs and condition of the valuation practice in Indonesia.  This is the fifth edition of the Indonesian Valuation Standards (previous 2007), and will be called KEPI and SPI  (Standar Penilaian Indonesia) 2013. KEPI and SPI has important role for the valuers, users, government, and other bodies.  KEPI is the moral ground, while SPI is the practice guide of valuation in Indonesia, while from the user it is as a…

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REIT in Indonesia: Why Not?

Posted on January 10, 2011

REIT or Real Estate Investment Trust is an investment vehicle (trust) that pool investor funds to purchase a portfolio of properties.  A REIT may be sponsored by a property company that has already had a portfolio of properties and wanted to get more cash to purchase more properties.  Normally, it has two unique characteristics: investment in income-producing properties, and almost all of its profits distributed to investors as dividends. By the time I write this article (January 2011), there are two REITs originating in Indonesia, but not listed in Indonesia.  It is the First REIT, and LMIR REIT, both were listed by Lippo Group.  First REIT is a hospital and hospitality REIT with portfolio of several Siloam Hospitals in Indonesia (now add several more…

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Appraisal “Law” in Indonesia

Posted on August 24, 2010

As of now (October 2010), the appraiser profession in Indonesia is regulated by the Ministry of Finance with a regulation in the ministry level, namely PMK No.125/PMK.01/2008 tentang Jasa Penilai Publik. (right click and save as to download).  However, lately in the appraisers community, and the government of Republic of Indonesia has realize the importance of having a Law in the country level to regulate this profession. As a comparison, Malaysia has had the law on appraiser profession since 1981, in the Laws of Malaysia, Act 242, “Valuers, Appraisers, and Estate Agents Act 1981”. Indonesia is targeting to have the law (“Undang-undang” or “UU”) about the appraisal profession in the year 2011. The talk in the Legislative (“Dewan Perwakilan Rakyat” or “DPR”) has been…

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Land Titles in Indonesia

Posted on July 27, 2010

So, you want to buy a piece of land in Indonesia? The first you should know is the land title you will get.  Read this article first to know an overview of land titles in Indonesia. The land tenure legal system in Indonesia is administered under the Basic Agrarian Law No. 5 Year 1960. Land tenures and titles are the jurisdiction of The National Land Agency (“Badan Pertanahan Nasional” or “BPN”), a government body that manages all grants, extensions, renewals of certified titles as well as running the land registration system. Land ownership titles in Indonesia are divided into two broad categories, which is customary traditional land title (“Adat” land rights), and certified titles. The traditional land title is not registered in the BPN…

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