Can foreigners own property in Indonesia?

Indonesia aims to make foreign owned property easier - Indonesia expat

Thursday 23approx In July, a cabinet minister said Indonesia would relax property rules for foreign buyers.

Foreigners will have better options of owning a home in Indonesia. This can significantly change the current economic slump as a result of the COVID-19 pandemic and increased unemployment.

Sofyan Djali, Minister of Agricultural and Spatial Planning, announced in a webinar: "We will legally ratify (the new property rules) by the end of August." The laws allow foreigners to have the same rights as local Indonesian buyers. “This is Parliament's promise and President Joko Widodo has asked that such a timetable be the deadline,” he said.

Indonesia's top real estate agents attended the webinar, including James Riady from Lippo Group and Muktar Widjaja from Sinar Mas Group.

The Indonesian real estate sector supports at least 170 industries and employs more than 30 million people. Approximately 11% of the Indonesian population work for the Indonesian real estate sector.

With the effects of the COVID-19 pandemic, the Indonesian economy has plummeted and many people have become unemployed. By changing the property laws for foreigners, the government wants to generate more income for the Indonesian economy.

"Foreigners who buy houses in Indonesia make money," said Muktar.

Currently, foreigners are only allowed to buy apartments in Indonesia and have difficulty obtaining bank loans due to the 30-year lease title.

Indonesian citizens, on the other hand, can buy any property, including apartments and land with condominiums or leases with guaranteed renewals.

It is not clear whether the loose property laws currently allow foreigners to buy country houses. However, Mr Muktar has proposed that foreigners have access to funding assistance and that the title of the units be mortgaged.

Source: Straits Times

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