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Jakarta Post

Developers eye expat buyers

  • Burhanuddin Abe

    Contributor

Jakarta   /   Sat, May 1 2010   /  12:12 pm

Recent news about the possibility that foreigners may be allowed to own property in Indonesia has sparked new hope among businesspeople. Currently, the government is revising Government Regulation No. 41/1996 on residential property ownership by foreigners domiciled in Indonesia. The draft revision suggests that foreign ownership of property will be allowed in the form of the right to lease or to use, with leases being extendable for at least 70 years instead of the current 25. This is good news for those in the property business. Many believe it is better for the government to allow foreign ownership of apartments on land with the right to use, with leases being extendable. The reason is quite simple: Apartments in Indonesia are generally built on land with the right to build. Without changing the land's status to the right to use, it would be difficult for foreigners to ...