Last Will in Indonesia: What to Know

When it comes to planning for the future, you and I both know how important it is to ensure that our loved ones are taken care of. One way to do this is by creating a last will. 

In Indonesia, the process of drafting a last will is influenced by various legal frameworks, including the Civil Code, the 1974 Marriage Law, and the Islamic Compilation Law. 

Let’s break it down together so you can understand what’s involved and how to make sure your wishes are honored.

What Is a Last Will?

A last will, or testament, is a legal document that allows you to decide how your assets will be distributed after you pass away. It’s your chance to ensure that your property, money, and other belongings go to the people or causes you care about most. Without a will, your estate will be divided according to Indonesia’s inheritance laws, which may not align with your personal wishes.

Legal Grounds for a Last Will in Indonesia

Indonesia’s legal system is unique because it recognizes multiple legal frameworks based on religion, ethnicity, and civil law. This means the rules for creating and executing a last will can vary depending on your background and beliefs. Here are the main legal grounds you should know:

1. The Civil Code

The Civil Code (Kitab Undang-Undang Hukum Perdata or KUHPerdata) is the primary legal framework for non-Muslim Indonesians. It outlines the rules for creating a valid last will and how inheritance is distributed. According to the Civil Code:

1. Form of the Will. A will must be written and signed or created as a handwritten document (olographic will), which must later be registered.
2. Testamentary Freedom. You have the right to distribute your assets as you see fit, but there are limits. For example, certain family members, such as children and spouses, are entitled to a legitime portie (reserved portion) of the inheritance. This means you cannot completely disinherit them.
3. Witnesses. At least two witnesses must be present to ensure its validity.

2. The 1974 Marriage Law

The 1974 Marriage Law (Undang-Undang Nomor 1 Tahun 1974) also plays a role in inheritance matters, especially for married individuals. This law emphasizes the concept of joint property (harta bersama). If you’re married, any assets acquired during the marriage are considered joint property, unless otherwise agreed upon in a prenuptial agreement.

When drafting a will, you must account for this joint property. For example, you can only distribute your share of the joint property, while your spouse retains their portion.

3. The Islamic Compilation Law

For Muslim Indonesians, inheritance is governed by Islamic law, as outlined in the Islamic Compilation Law (Kompilasi Hukum Islam or KHI). This law is based on Sharia principles and provides specific rules for dividing assets:

1. Mandatory Heirs. Under Islamic law, certain heirs, such as children, spouses, and parents, have fixed shares of the inheritance. For instance, a son typically receives twice the share of a daughter.
2. Wasiyyah (Bequest). You can allocate up to one-third of your estate to non-heirs or charitable causes through a wasiyyah. However, this portion cannot infringe on the shares of mandatory heirs.
3. Witnesses. Like the Civil Code, the Islamic Compilation Law requires a will to be documented and witnessed to ensure its validity.

Steps to Create a Last Will in Indonesia

Now that we’ve covered the legal foundations, let’s talk about the practical steps you need to take to create a last will in Indonesia:

1. Identify Your Assets. Start by listing all your assets, including property, bank accounts, investments, and personal belongings. Don’t forget to include any debts or liabilities, as these will need to be settled before the inheritance is distributed.

2. Determine Your Beneficiaries. Decide who you want to inherit your assets. This could include family members, friends, or even charitable organizations. Keep in mind the legal restrictions, such as the legitime portie for Civil Code wills or the fixed shares for Islamic inheritance.

3. Choose the Right Type of Will. Depending on your legal background, you can choose between a testamentary will or a handwritten will. A testamentary will is created in the presence of witnesses, while a handwritten will must be entirely written and signed by you.

4. Consult a Legal Expert. It’s always a good idea to consult a legal expert like Wijaya & Co to ensure your will complies with the applicable laws. They can help you draft the document, register it, and address any potential disputes.

5. Register Your Will. Once your will is finalized, it should be registered with a probate office. This ensures that it will be recognized and enforced after your passing.

Common Challenges and How to Overcome Them

Creating a last will in Indonesia isn’t always straightforward. Here are some common challenges you might face and tips to overcome them:

1. Family Disputes. Inheritance can be a sensitive topic, and disagreements among family members are common. To minimize conflicts, make sure your will is clear and legally sound. You might also consider discussing your plans with your family to manage expectations.

2. Complex Property Ownership. If you own property jointly with your spouse or other family members, it can complicate the inheritance process. Be sure to clarify ownership rights and include this information in your will. You may also enter into a postnuptial agreement before you execute your last will in order to identify the ownership of your assets.

3. Legal Confusion. With multiple legal frameworks in play, it’s easy to feel overwhelmed. This is why consulting a legal expert like Wijaya & Co  is crucial. They can guide you through the process and ensure your will aligns with the relevant laws.

Why You Shouldn’t Delay

You and I both know that life is unpredictable. While it’s not always easy to think about what happens after we’re gone, creating a last will is one of the most responsible things you can do for your loved ones. It gives you peace of mind knowing that your wishes will be respected and your family will be taken care of.

By understanding the legal grounds and following the proper steps, you can create a will that reflects your values and priorities. So why wait? Take the first step today and start planning for the future. 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.