TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Foreigners can own apartments in certain areas under omnibus law

Other regulations only allow foreigners to possess property under the right of use.

Dzulfiqar Fathur Rahman (The Jakarta Post)
Premium
Jakarta
Fri, October 23, 2020

Share This Article

Change Size

Foreigners can own apartments in certain areas under omnibus law The 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. (JP/Arief Suhardiman)

T

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.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

Foreigners can own apartments in certain areas under omnibus law

Rp 29,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 29,000
{

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.