Expats to be given property rights

Expats to be given property rights

JAKARTA (JP): Minister of Public Housing Akbar Tandjung said
yesterday that his office is now preparing guidelines for
property ownership by foreigners.

"No property transaction by foreigners will be allowed before
the guidelines are issued," Akbar told journalists after a
hearing with the House of Representatives Commission V for
housing, transportation and tourism.

"We will consult the ministries of manpower, justice and
finance for the formulation of the guidelines and we will try to
complete the formulation as soon as possible," he said.

He said the guidelines will clarify several issues, including
the types of property that can be purchased by foreigners and the
government agency that will determine which foreigners are
eligible to own property in the country.

"It's obvious that they cannot buy government-sponsored
houses, so the only chance for them is to buy luxury houses,"
Akbar said.

The government last month issued a regulation -- No. 411/1996
-- which allows foreigners to own property in Indonesia. The
regulation, according to Akbar, defines foreigners as investors
or businesspeople who regularly visit Indonesia regardless if
they domicile in the country or abroad.

"But who will determine if the foreigners wanting to buy
property are investors," several House members questioned.

They also questioned the government's consideration to allow
foreign ownership.

"We recognize that the number of foreign investors living in
Indonesia has increased rapidly in line with the increasing
participation of foreign investment in national development,"
Akbar responded.

"This move is in anticipation of a further increase in the
number of foreigners in Indonesia during the free trade era,"
Akbar added.

He also agreed that foreign ownership for investment purposes
should not be allowed.

"Foreigners should only be allowed to buy one house or
apartment."

Akbar confirmed that ownership is limited to not more than 25
years for houses or apartments built on land in the "right to
use" category, compared with 30 years for those built on land
with the "right to build".

Leases in both categories are renewable for another 20 years.

Akbar noted that property developers should not change their
business orientation just to take advantage of the new
regulation. (alo)