Apartment business<\/p>\n
We welcome foreign investment in Indonesia. It will indeed
\ncreate jobs, bring foreign currencies into Indonesia and improve
\ntrade, among other benefits.<\/p>\n
Therefore I would like to suggest that we should also permit
\nforeigners and foreign companies (based in Indonesia) to purchase
\napartments, condos and\/or single family residences. Perhaps we
\nshould even allow them to invest in the purchase of apartment
\nbuildings, office buildings and factories.<\/p>\n
The benefits to Indonesia and the Indonesian partners would be
\nnumerous, and both Indonesia and its partners have nothing to
\nloose.<\/p>\n
These buildings cannot be removed even if or when the foreign
\ncompany or persons decide to return to their country of origin.
\nAllowing foreigners to buy properties will boost the construction
\nand develop architecture of the cities. Since they would have a
\nfeeling of ownership they would be quite prepared to pay more for
\nthe architectural and decorative fashions, things that they would
\nnot bother about if they were mere tenants of the buildings.<\/p>\n
Our neighbor Singapore, for example, gains a lot from the
\nscheme which allows foreigners to buy properties.<\/p>\n
On the contrary, the property market in Indonesia is sluggish
\nwhich in turn makes the prices to go down.<\/p>\n
There are some reasons, I believe, why prices of houses and
\napartments continue to decrease.<\/p>\n
* Over supply of houses and apartments.<\/p>\n
* Hotels are even renting rooms and apartments to foreigners
\non a monthly basis, which diverts a large percentage of renters
\naway from the market.<\/p>\n
* Sales tax of five percent is levied on a sold property.<\/p>\n
* Often a broker is involved which puts pressure on the sale
\nprice.<\/p>\n
* Most investors have \"wait and see\" attitudes.<\/p>\n
* Some investors are even going as far as waiting for
\nPresident Soeharto to be re-elected.<\/p>\n
* Very high bank interest rates.<\/p>\n
* First-time buyers worry about the quality and on-time
\ncompletion of apartments or houses they buy because some
\nunreliable developers give many excuses for not completing a
\nconstruction on time. Even very well-known companies sometimes
\nbuild poor quality houses.<\/p>\n
* A lot of Indonesian funds are being diverted to Singapore,
\nAustralia, China, America and other countries for more lucrative
\nbusiness dealings since they cannot expect profitable deals in
\nJakarta in the near future.<\/p>\n
To help revive this situation and prevent further capital
\nflight, we should consider allowing foreigners to buy apartments
\nand houses. The foreigners cannot take the houses with them even
\nwhen they decide to leave Indonesia.<\/p>\n
EDWARD N.H. ABRAHAM<\/p>\n
Jakarta<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/apartment-business-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }