Foreign Property Ownership Proposed to Be 70 Years
\nWednesday, 11 October, 2006 | 12:33 WIB<\/p>\n
TEMPO Interactive, Jakarta: The Public Housing Ministry has proposed that foreign parties\u2019 right of use on properties in Indonesia be extended from the current 25 years to 70 years.<\/p>\n
The extended period is regarded as already sufficient enough to attract foreign parties\u2019 interest in investing in the property sector in Indonesia.<\/p>\n
M. Yusuf Asy'ari, the State Minister for Public Housing, said this extension would require an amendment to the State Decree No.5\/1960 on Agrarian Matters.<\/p>\n
However, the amendment process can be put to one side if the extension is already needed as soon as possible.<\/p>\n
\u201cThe way for this to be done is by giving automatic extensions,\u201d he told Tempo.<\/p>\n
Yusuf acknowledged that the Public Housing Department still had limited authority as regards the foreign parties\u2019 right of use extension.<\/p>\n
The authorized party to follow up on the proposed extension is the National Land Agency (BPN).<\/p>\n
The idea of extending foreign parties\u2019 right of use was previously mentioned by Lukman Punomosidhi, Head of the Central Indonesian Real Estate Developers Association (REI).<\/p>\n
\u201cNot necessarily 99 years like in Singapore, 60 years is enough,\u201d he said.<\/p>\n
Lukman emphasized that foreign ownership of property in Indonesia would be extremely beneficial, in terms of attracting investment and foreign exchange as also creating job opportunities.<\/p>\n
According to his calculations, potential foreign investment would be US$5 billion.<\/p>\n
Harun Mahbub<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/foreign-property-ownership-proposed-to-be-70-years-1160599457", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }