Govt must let foreigners buy property: Analyst<\/p>\n
JAKARTA (JP): The government must allow foreigners to own both
\nprivate and commercial property in Indonesia to help boost the
\ndormant property sector, a property analyst has said.<\/p>\n
Panangian Simanungkalit said on Thursday that foreigners were
\npotential buyers of property in the country, and this could help
\nlocal developers and property firms overcome their financial
\nproblems.<\/p>\n
\"Foreigners' interest in buying property here is abundant. The
\nonly problem is that they face legal uncertainty in property
\nownership,\" Panangian was quoted as saying by Antara on Thursday.<\/p>\n
In 1996, the government issued a regulation allowing foreign
\ncompanies or foreign nationals, with stay permit cards, to buy a
\nhouse, an apartment or a condominium.<\/p>\n
Panangian said the regulation should be amended so that even
\nnonresidents were allowed buy houses.<\/p>\n
\"The only thing they must not be allowed to buy are
\n(government-subsidized) low-cost houses or very cheap houses, and
\nvery large plots,\" he said.<\/p>\n
Property could be offered to foreign tourists who regularly
\nvisit Indonesia, he said.<\/p>\n
If about 1 percent of the total foreign visitors to the
\ncountry bought property at an average price of US$100,000, it
\nwould add up significantly, he said.<\/p>\n
Foreign nationals who work in Indonesia, totaling about 60,000
\npeople, are also potential buyers of upmarket properties in the
\ncountry, he said.<\/p>\n
Most expatriates do not stay long in a country. Within three
\nto four years, they would most likely sell their property if
\nthere were gains to be made, he said.<\/p>\n
He said, however, that priority should be given to the sale of
\nsupermarkets, apartments and condominiums for commercial use to
\nforeign investors.<\/p>\n
Panangian cited the Golden Triangle commercial district in
\nSouth Jakarta as being worth over $18.5 billion, out of a total
\nof about $50 billion worth of commercial properties throughout
\nthe country.<\/p>\n
\"If foreign investors were to purchase 10 percent of the total
\n$50 billion worth of commercial property, the sector could rake
\nin about $5 billion,\" he said.<\/p>\n
The property sector is among the worst hit by the prolonged
\neconomic crisis, which has seen the rupiah drop in value by about
\n70 percent since August last year.<\/p>\n
While developers are burdened by foreign debts, their markets
\ndrop as purchasing power sharply diminishes.<\/p>\n
Panangian said 80 percent out of about 2,500 developers had
\ntechnically gone bankrupt or had temporarily suspended operation
\nsince the monetary crisis struck.<\/p>\n
He estimated that the amount of loans that developers had
\nobtained from local banks reached about Rp 75 trillion ($10
\nbillion), while their offshore debts amounted to about Rp 35
\ntrillion, he said.<\/p>\n
He said developers mostly obtained short-term loans to finance
\nlong-term projects. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-must-let-foreigners-buy-property-analyst-1447893297",
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