Thursday, 28 January, 2010 | 15:16 WIB
TEMPO Interactive, Jakarta:Foreign property ownership will be extended from 25 years to 70 years. “The regulations formulation is completed. It only waits for the Housing Minister stamp,” said Lucy Rumantir, Jones Lang LaSalle Indonesia Chairman, in a press conference at the Nikko Hotel in Jakarta, yesterday.
Lucy, who is also the Permanent Commitee Head of Property Services for the Indonesian Chamber of Commerce and Industry (Kadin), is one member of the team who formulated Government Regulation (PP) No. 41/1996.
Under this regulation, foreigners could only own a house for 25 years.
According to Lucy, Indonesian properties occupancy rates are not optimal yet because of the government limitation.
Under this PP, foreigners can only own a home or flat built on land with a right to use (hak pakai) certificate .
Foreigners complained that while Indonesians could easily own houses abroad, but it is difficult for them to get houses in Indonesia.
Whereas regulations on property ownership in other big cities in the world was easier.
She cited that in Australia, foreigners could own a house just by having a passport. But they could only buy new houses.
“Later, step by step, we will formulate a regulation to allow right to use land become right to build land (hak guna bangunan),” said Lucy
Besides that, to smooth out foreign property ownership, the revision includes limitations.“For example, foreigners could only own properties above Rp1.5 billion,” she said.
Lucy added that if more foreigners buy properties in Indonesia, state revenues will increase.According to her notes, the number of foreigners in Indonesia is 83,000 people. If just one percent of them buy properties, this translate to 800 people. “800 times Rp1.5 billion, it’s quite a big revenue for Indonesia,” she said.
That does not include other impacts. If demand is higher, property development will also increase. “From there, demand for curtains and furniture will increase,” said Lucy. This means that other industries, such as textile and furniture, will also grow.
Eka Utami Aprilia | ANTON WILLIAM