AS/Foreigners Should Be Allowed to Purchase Property
Foreigners Should Be Allowed to Purchase Property
Tuesday, 29 November, 2005 | 23:44 WIB
TEMPO Interactive, Jakarta:Business people involved in the property business have requested the Indonesian government to allow foreigners to purchase property in Indonesia as this policy can encourage economic activities, create work opportunities and increase foreign exchange.
The chairman of Indonesian Real Estate Lukman Purnomosidi said that many countries received billions of dollars of profits every year from this policy, particularly from the selling of condominiums. “Many Indonesians have purchased property abroad,” stated Purnomosidi in Jakarta on Monday (28/11).
This condition is very upsetting because the opportunities to purchase abroad are wide open. However, foreigners in Indonesia are not permitted to purchase property in Indonesia, so that added value is more enjoyed by other countries compared to Indonesia.
“The increasing number of properties selling abroad can be seen from the number of advertisements in national newspapers,” stated Purnomosidi. In foreign countries, rights to use the building can total 99 years. However, in Indonesia, rights only last for 25 years.
According to Head of the National Land Agency Joyo Winoto, Law No.5/1960 on Agrarian Affairs stipulates that foreigners are not allowed to have the building rights but only the rights to use. “The rights to use are also limited for 25 years,” stated Winoto.
Winoto added that the government was currently in the process of amending the law, including the option to improve the rights to use for foreigners or to give the building rights to foreigners. (Agus Supriyanto-Tempo News Room)
Tuesday, 29 November, 2005 | 23:44 WIB
TEMPO Interactive, Jakarta:Business people involved in the property business have requested the Indonesian government to allow foreigners to purchase property in Indonesia as this policy can encourage economic activities, create work opportunities and increase foreign exchange.
The chairman of Indonesian Real Estate Lukman Purnomosidi said that many countries received billions of dollars of profits every year from this policy, particularly from the selling of condominiums. “Many Indonesians have purchased property abroad,” stated Purnomosidi in Jakarta on Monday (28/11).
This condition is very upsetting because the opportunities to purchase abroad are wide open. However, foreigners in Indonesia are not permitted to purchase property in Indonesia, so that added value is more enjoyed by other countries compared to Indonesia.
“The increasing number of properties selling abroad can be seen from the number of advertisements in national newspapers,” stated Purnomosidi. In foreign countries, rights to use the building can total 99 years. However, in Indonesia, rights only last for 25 years.
According to Head of the National Land Agency Joyo Winoto, Law No.5/1960 on Agrarian Affairs stipulates that foreigners are not allowed to have the building rights but only the rights to use. “The rights to use are also limited for 25 years,” stated Winoto.
Winoto added that the government was currently in the process of amending the law, including the option to improve the rights to use for foreigners or to give the building rights to foreigners. (Agus Supriyanto-Tempo News Room)