Thu, 18 Mar 2010

TEMPO Interactive, Jakarta:The Chairman of the Investment Coordinating Board Gita Wirjawan has emphasized that revision to foreign ownership term of property in Indonesia is urgently needed.

According to Gita, foreign ownership of only 25 years is considered too short and not as competitive as other products, like properties offered by neighboring countries.

Even though the term can be extended, the offer is still not interesting enough.

“Foreigners have also asked me about this (property asset ownership period),” Gita told Tempo yesterday.

Developers proposed that regulation of foreign properties ownership should be revised.

The regulation is contained in Government Regulation no. 40 on Right to Conduct a Business, Right to Build and Right on Land Utilization and Government Regulation no. 41 of Foreign Housing Ownership.

Gita said that if the two regulations were revised, this would provide two benefits.

First, it would change the perception of the investment climate in Indonesia.

Second, it would attract investment to Indonesia.

“This is proven in Malaysia and Singapore, which have already given an extension for foreign ownership of property,” she said.

According to Gita, if there was a revision, in the beginning it would not have a big impact.

But after a few years, she is optimistic that much investment will come to Indonesia.

“Moreover, businesses outside the property sector will feel the impact (investment increase),” said Gita.