JAKARTA (JP): The government will adhere to the existing
JAKARTA (JP): The government will adhere to the existing
agrarian law that bans foreign land ownership but is considering
easing housing laws for foreigners in an effort to attract more
investment.
"Based on our Agrarian Law No. 42 of 1960, foreigners are not
allowed to own land here but they have rights to use," Minister
of Agrarian Affairs/Chairman of the National Land Agency Soni
Harsono said after meeting with President Soeharto at the Bina
Graha on Thursday.
The Ministry of Justice and the Ministry of Agrarian Affairs
are now examining the exact definition of what constitutes a
home.
"We will have to get a clear-cut definition of what is
considered a domicile. Whether it refers to residing in
Indonesia, or to those holding permanent residence permits (KIM)
or provisional residence permits (KIMS)," he said.
The government plans to allow foreigners and foreign
institutional bodies to own apartments in Indonesia under some
circumstances in the near future.
The plan is anticipating a possible increase in the number of
high-income foreign workers here in line with Indonesia's
economic growth.
"As long as the foreigners stay or the institutional bodies
conduct their activities here, they will be allowed to own
apartment units but not the land," Soni said.
With the pressure to revise the existing law, some ministries
have proposed a bill that will allow foreigners not only to own
apartments but also to use their land use permit as collateral,
he added.
"We are still examining all aspects and possible impacts of
the bill," Soni said.
Foreign investors may have doubts about investing their
capital because land use rights cannot be used as a bank
guarantee, he added.
"The bill on land use will allow foreigners to use and build
on land for 25 years and to use this as collateral for bank
loans," Soni said.
He said the state ministers of public housing and agrarian
affairs and the minister of justice, together with the House of
Representatives (DPR) are studying all aspects and possible
impacts regarding the application of the bill. (prs)