Let foreigners own apartments: CIPS<\/p>\n
Abdul Khalik, The Jakarta Post, Jakarta<\/p>\n
A noted property analyst urged the government on Wednesday to
\nallow foreigners to buy and own apartments here in order to boost
\nproperty sales and economic activity in the country.<\/p>\n
Panangian Simanungkalit of the Center of Indonesian Property
\nStudies (CIPS) argued that allowing foreigners to own apartments
\nwould benefit the country's economy.<\/p>\n
\"I don't understand why the government does not allow
\nforeigners to own apartments because other countries like
\nThailand and China have long allowed foreign ownership of
\napartments,\" he told a seminar on property on Wednesday.<\/p>\n
Many foreigners who got married to Indonesians or simply
\nwanted to retire in the country have long complained that they
\ncould not buy and own apartments or houses here.<\/p>\n
Some of them have bought houses or apartments under their
\nspouse's names, but problems could arise in the event that the
\nmarriage broke down, or the spouse died.<\/p>\n
Panangian said that many foreign citizens have expressed
\ninterest in owning apartments in Jakarta, but current regulations
\nprevent them from buying.<\/p>\n
He gave an illustration that if only one percent of around
\nfive million foreign tourists and businesspeople who came to
\nIndonesia every year bought apartments, the country could earn
\nhuge amount of money in the form of foreign exchange.<\/p>\n
\"One percent means 50,000 apartments. If one apartment costs,
\nsay, between Rp 1 billion and Rp 2 billion, then some Rp 100
\ntrillion annually could be generated. This income will generate
\nother economic activities in the form of apartment furniture and
\nsupplies,\" Panangian said.<\/p>\n
He said foreigners who purchased apartments would help the
\nproperty industry, which saw sales of between 70 to 75 percent of
\ntotal supply this year.<\/p>\n
According to Land Law No. 5 of 1960, foreigners are not
\nallowed to own land in Indonesia.<\/p>\n
Anisa Himawan, CEO of PT Mandiri Eka Abadi, which built the
\nPakubuwono Residence, agreed with Panangian, saying that a change
\nin the regulations would help the country's employment problems
\nas the Pakubuwono project alone employed over 4,000 workers.<\/p>\n
\"We hope the government allows foreigners to own apartments as
\nother countries do. Thailand, for instance, has allowed ownership
\nof buildings by foreign citizens for 70 years,\" she said.<\/p>\n
Panangian also said that with the inflation rate expected to
\nreach over 16 percent this year, investing in property would be
\nseen as the safest as it bore low risk.<\/p>\n
\"With the current rate of inflation, I am sure that many
\nforeigners would prefer to invest their money in property, rather
\nthan in other sectors,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/let-foreigners-own-apartments-cips-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}