When a family member passes away, one of the first questions is often the hardest: which rules decide who inherits, and how much? In Indonesia, the answer depends largely on the religion of the deceased and the heirs.
Three systems
- Islamic inheritance law, based on the Compilation of Islamic Law, applies to Muslim families. Disputes are handled by the religious court.
- Civil inheritance law, based on the Civil Code, generally applies to non-Muslim families. Disputes are handled by the district court.
- Customary law (hukum adat) can also play a role in some communities.
Proving who the heirs are
Before assets such as land, shares or bank accounts can be transferred, the heirs usually need a document confirming their status, such as a certificate of inheritance or a court determination of heirs. Which document is needed depends on the family’s circumstances and the institution involved.
Wills
A will made before a notary makes your wishes clear and reduces the risk of disputes. Under Islamic law, a bequest to someone who is not an heir is generally limited to one third of the estate.
Settling without court
If all heirs agree, an estate can often be divided through a notarial deed without litigation. Where there is disagreement, mediation is usually worth trying before going to court.