Malaysia vs Indonesia
Wills and inheritance for Indonesians who own property in Malaysia
Indonesian families who buy in Kuala Lumpur, Penang or Johor often assume an akta wasiat from their notary at home will settle everything. Malaysian property, however, is inherited under Malaysian law and needs a Malaysian court grant. This page compares the two systems and sets out the steps that save heirs time.
In short
Key points
- Malaysian land and strata units are inherited under Malaysian law, whatever the owner’s nationality.
- Indonesia is not a Commonwealth country, so an Indonesian court order or notarial deed cannot be resealed in Malaysia — heirs apply for a fresh Malaysian grant.
- Indonesia’s Civil Code protects a reserved share (legitieme portie) for children; Malaysian law for non-Muslims has no forced shares.
- Indonesian Muslims follow the Kompilasi Hukum Islam at home; Malaysian property of a Muslim is distributed by faraid in Malaysia.
- A Malaysian will for Malaysian assets, coordinated with your Indonesian wasiat, usually gives heirs the clearest path.
- Neither country levies a separate inheritance tax on heirs, but Indonesian residents must report foreign assets in their SPT.
The Indonesian system
How inheritance works in Indonesia
Indonesia has three overlapping inheritance systems: civil law, Islamic law and customary (adat) law.
Civil Code (KUHPerdata)
Mainly used by non-Muslims. A person aged 18 or over may make a will. Wills are made with a notary — as a public deed, a sealed (secret) deed or a handwritten will deposited with a notary — and are reported to the Central Will Registry (Daftar Pusat Wasiat) at the Ministry of Law.
Reserved shares
The Civil Code gives descendants and, in some cases, parents a legitieme portie — a minimum share a will cannot take away. A will that cuts it can be reduced on the heir’s claim.
Islamic law (KHI)
For Muslims, the Kompilasi Hukum Islam applies through the Religious Courts. A wasiat may be made from age 21 and is limited to one-third of the estate unless all heirs agree; heirs take fixed faraid shares.
Indonesians abroad
Article 945 of the Civil Code says an Indonesian citizen abroad should make a will by authentic deed following local formalities; a private handwritten document is accepted only for limited matters such as naming an executor or funeral wishes.
Comparison
Malaysia vs Indonesia side by side
| Point | Malaysia | Indonesia |
|---|---|---|
| Will law (non-Muslims) | Wills Act 1959 (Peninsular); Sabah and Sarawak ordinances | Civil Code (KUHPerdata) |
| Who prepares it | Anyone; often a lawyer or trust company. No registration required | Notary; reported to the Daftar Pusat Wasiat |
| Minimum age | 18 | 18 (Civil Code); 21 for a Muslim wasiat (KHI) |
| Forced shares | None for non-Muslims | Legitieme portie for descendants (Civil Code); faraid for Muslims |
| Muslim wills | Wasiat up to 1/3; faraid; hibah common | Wasiat up to 1/3 (KHI); faraid; hibah |
| Intestacy (non-Muslims) | Distribution Act 1958 — e.g. spouse 1/3, children 2/3 | Civil Code classes of heirs; spouse shares with children |
| Who deals with the estate | High Court (probate/letters of administration), JKPTG small estates up to RM5m, Amanah Raya | Heirs, notary, Religious or District Court where disputed; certificate of heirship |
| Inheritance tax | None | No separate inheritance tax |
| Foreign grants | Commonwealth grants can be resealed; Indonesian orders cannot | — |
Wills Act 1959; Distribution Act 1958; JKPTG; Indonesian Civil Code and Kompilasi Hukum Islam as summarised by Indonesian legal publishers; checked October 2026.
Cross-border
What carries over to Malaysia — and what does not
- An Indonesian notarial will can be accepted. Section 27 of Malaysia’s Wills Act 1959 treats a will made abroad as validly executed if it follows the law of the place where it was made or of your domicile. Expect to provide a certified copy, a certified English or Malay translation and possibly evidence of Indonesian law.
- No resealing. Malaysia reseals grants only from Commonwealth countries. Heirs of an Indonesian owner must apply to the Malaysian High Court for probate (with the Indonesian will) or letters of administration, through a Malaysian lawyer.
- Legitieme portie does not bind Malaysian land. Malaysian immovable property follows Malaysian law, which has no reserved share for non-Muslims. A child excluded from a Malaysian will may not be able to claim a reserved share of the Malaysian property in the way Indonesian law allows — get advice in both countries if this matters.
- Without a will, Malaysian rules apply to the property. For non-Muslims, the Distribution Act 1958 shares apply to Malaysian land; Indonesian civil-law classes of heirs do not.
- Muslim owners: Malaysian property is distributed by faraid in Malaysia, usually with a certificate from a Malaysian Syariah court. Shares are broadly similar, but documents from the Indonesian Religious Court may not be accepted on their own.
Tax and reporting
Tax and reporting for heirs
Malaysia has had no estate duty since 1991, and Indonesia does not have a separate inheritance tax. Indonesian tax residents are taxed on worldwide income, so rent from an inherited Malaysian unit, and the unit itself as an asset, belong in the annual SPT. If the heir later sells, Malaysian real property gains tax may apply — see property tax: Malaysia vs Indonesia. Confirm the Indonesian treatment with a konsultan pajak.
Practical steps
Practical steps for Indonesian owners
- Ask a Malaysian lawyer to prepare a will covering Malaysian assets only, and your Indonesian notary to confirm it does not conflict with your akta wasiat or the legitieme portie.
- Name an executor who can act in Malaysia — a trusted relative with a Malaysian connection or a licensed trust company.
- Keep the SPA, title or strata title, loan papers and Malaysian bank details together and tell your family where they are.
- If your heirs are Indonesian, they will be foreign owners in Malaysia; check state rules on can a foreigner buy it? before deciding whether they keep or sell.
- If you hold a long-stay pass, see MM2H — a visa does not change how property is inherited.
- For buying steps in Bahasa Indonesia, see beli properti Malaysia dari Indonesia.
Straight answers
Frequently asked questions
Is an Indonesian will (akta wasiat) valid for property in Malaysia?
It can be accepted under s.27 of Malaysia’s Wills Act 1959 if it was properly made under Indonesian law, but it must still be proved in a Malaysian High Court, with a translation, before the property can be transferred.
Can a Malaysian court reseal an Indonesian court order?
No. Resealing is available only for grants from Commonwealth countries. Heirs of an Indonesian owner apply for a fresh Malaysian grant.
Who inherits my Malaysian apartment if I die without a will?
For a non-Muslim, Malaysia’s Distribution Act 1958 decides the shares for the Malaysian property. For a Muslim, faraid applies in Malaysia.
Does the legitieme portie apply to my Malaysian property?
Malaysian immovable property is governed by Malaysian law, which has no reserved shares for non-Muslims. Take advice in both countries if you plan to leave Malaysian property unequally.
Is there inheritance tax on Malaysian property for Indonesians?
Malaysia has no estate duty and Indonesia has no separate inheritance tax. Indonesian residents should still report the asset and any rent in their SPT.
Should I make a separate Malaysian will?
Many cross-border owners do. It lets heirs apply for Malaysian probate without proving Indonesian law, but it must be drafted so it does not revoke your Indonesian will.
Compare
Wills and estates: Malaysia and other countries
Other guides
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