Jakarta (ANTARA News) - The government is proposing a regulation to be included in the draft bill on investment which would allow foreign buinesses to own properties if they make direct investments in Indonesia.
Foreign investors can own properties through possessions of a Land Title for Construction Purposes (HGB), a Land Title for Industrial Purposes (HGU) or a Land Title for Personal Use (HP).
"So, we are offering facilities to foreign investors to stay in Indonesia," Deputy Head for Land and Registration Affairs Bambang Eko HN said in Batam on Sunday.
He made the statement when attending the 35th anniversary celebration of the Real Estate Indonesia (REI).
He said that the current investment law stipulated that foreign business owners could have land titles for industrial purposes (HGU) for 30 years and it could be extended for another 20 years.
But the current draft bill will guarantee that foreign businesses can have a HGU for 50 years and it could be extended to another 30 years.
He said that foreign investors would also be allowed to own a HGB for 60 years and could be extended to another 35 years. So is the case with the land title for personal use. Foreigners could own the title for 45 years and could be extended for another 25 years.
Eko told the REI about the government`s proposal on the new ruling in response to a request by REI that the government provide more facilities for foreign businesses purchase properties in Indonesia.
REI chairman Lukman Purnomosidi has previously suggested that foreigners be given ownership on apartments with certain prices such as applied in Singapore in order to improve investment in Indonesia.
With regard to the request, Eko said that the government would only provide such a facility if foreign business owners made investments in Indonesia. (*)