The government is currently revising a regulation that would enable foreigners to own property in Indonesia, says an official.

The regulation, Government Regulation No. 41/1996 on residential property ownership by foreigners, as of now only enables a non-national to occupy a building or land for 25 years.

'€œThe decision on the draft bill will have to wait for approval from the House of Representatives and the Coordinating Economic Ministry,'€ Deputy for area development at the Public Housing Ministry Agus Sumargiarto said on Thursday, as quoted by Kontan.co.id.

To acquire property ownership rights, however, according to Agus, foreigners will have to comply with tough requirements. For example, they would have to own a

business in Indonesia and should they want to sell their property, they would only be allowed to sell it to the government.

The government expects the bill to boost economic growth when the ASEAN single market is implemented in 2015.

Agus added that the kind of property that could be owned by foreigners, according to the draft bill, would be premium housing with a maximum of 50 to 60 years occupancy.

The draft bill, however, has the potential of breaking Law No. 5/1960 on agrarian issues. Therefore, Agus said that the government would let the National Land Agency

(BPN) and the House handle the matter as the two institutions were currently revising the law.

Association of Housing Development in Indonesia (Apersi) chairman Eddy Ganefo said the decision to allow foreigners to own property clearly violated the Agrarian Law as it states that land in Indonesia can only be owned by Indonesian nationals. (hrl)

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