Foreigners can own Indonesian property

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)