Other regulations only allow foreigners to possess property under the right of use.
he recently passed Job Creation Law enables foreigners to own apartments in certain areas, a relaxation of previous property ownership regulations that is expected to boost demand in the cooling property industry.
Article 144 paragraph 1 of the jobs law stipulates that ownership rights for apartments can be granted to foreigners, foreign legal entities and representatives of other countries or international organizations in Indonesia, in addition to Indonesians and Indonesian legal entities.
Other regulations, such as the Agrarian Law and Agrarian and Spatial Planning Ministerial Regulation No. 29/2016, allow only Indonesians to own apartments under full ownership rights, while foreigners can possess property under the right of use.
The omnibus law’s explanation of the article states that full ownership rights for foreigners and foreign entities only apply to apartments located in Special Economic Zones, Free Trade and Free Port Zones, Industrial Estates and other economic zones.
“If it gets implemented, the impact will be positive,” Arief Rahardjo, director of research and strategic consulting at real estate services firm Cushman & Wakefield, told The Jakarta Post via text message on Tuesday. “This means the target market will get bigger, particularly for projects in potential locations for foreigners.”
He added that the industry’s stakeholders should pay attention to whether there would be any further regulation that stipulated a minimum apartment price for ownership by foreigners.
The law does not say if ownership rights will be further qualified in other regulations, nor does it set a minimum price.
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