Foreigners can own Indonesian property

JAKARTA (JP): Foreigners residing in Indonesia can now own property in the country, though a number of restrictions apply.

Under Government Regulation No. 41/1996, access to Indonesian property is limited to those houses and apartments built on land with the hak pakai, or right to use, title, regardless of whether or not the land is owned by the government or individual Indonesians, Antara reported yesterday.

Ownership is limited to not more than 25 years, but the lease is renewable for another 25 years provided that the concerned foreigner is still residing in Indonesia, according to the news agency.

The regulation, signed by President Soeharto on June 17, states that foreign property owners who no longer reside in the country must sell or transfer their property to those who meet the criteria.

The state reserves the right to auction the property if the foreign owner fails to meet his or her obligation.

Minister of Public Housing Akbar Tanjung last month sounded out the imminent regulation, which he said was made possible following the House of Representatives' enactment of Law No.4 on Mortgages in March.

While inaugurating a new luxury housing complex at Bali's Jimbaran beach resort, Akbar said the move is expected to encourage developers to build houses on land with "right to use" titles.

"They (developers) should turn their eyes to foreigners and widen the market for their houses," he said at the Pecatu Indah Resor complex, which is managed by a company controlled by Hutomo Mandala Putra.

Also at the ceremony, Hutomo commented that he has received many inquiries from Japanese and Europeans wanting to buy Indonesian property for retirement and investment purposes. (emb)