Foreigners right to 'own' property may be extended

The Jakarta Post, Jakarta

Considering America has an average life expectancy of 77.7 years and the Netherlands 78.8, one could assume the government's plan to extend expatriates' permits for leaseholds on land from 25 to 60 years would last most people "a lifetime".

Particularly as people can usually only afford to buy a decent place in which to live in middle age -- unless, of course, you are Paris Hilton.

Minister of Public Housing Muhammad Yusuf Asy'ari said on Thursday that the government planned to revise a regulation and grant foreigners the assurance of property usage for 60 years, newsportal Tempointeraktif reported.

Law No. 5/1960 on land rules that only Indonesian citizens have property rights over land and buildings, including apartments and condominiums.

Government regulation no. 41/1996 stipulates that a non- national is only permitted to occupy a building or land for 25 years, extendible by another 25 years twice.

With the planned change to the regulation, non-nationals would be assured of occupancy for 60 years rather than having to renew the permit -- and still face the possibility of not getting a renewal -- after 25 years, Yusuf was quoted as saying.

President Susilo Bambang Yudhoyono has no objection to non- nationals "owning" property, as long as it does not create security problems, Yusuf said.

It was unclear in the report when the regulation would change.

Real estate analysts and developers have been urging the government to allow citizens of other countries to have property rights here to help boost the country's property sales and economic activity as foreign investors would feel welcomed.

To be able to stay or open an office in Indonesia, most foreign businesspeople rent apartments or other property.

Many foreigners married to Indonesians or those who simply want to retire in the country have long complained that they cannot buy apartments or houses here.

Some of them have bought houses or apartments under their spouse's name, but problems can arise in the event that the marriage breaks down, or the spouse dies.