Govt revised property price for foreigners

JAKARTA. The government has revised the minimum price of property, which can be owned by the foreigners. The revision is included in the Minister of Agrarian and Spatial/Head of National Land Agency No 29/2016 on the Provision, Release, or Transfer of the Ownership Rights on Housing for Foreigners who Reside in Indonesia.

The regulation was signed by Minister of Agrarian and Spatial Sofyan Djalil on 19 September 2016, and enacted on 26 September. The attachment of the regulation mentions that government has increased the minimum price of landed house for foreigners. For an example, the minimum price of landed house for foreigners in Yogyakarta has been increased from Rp 3 billion to Rp 5 billion.

Meanwhile the minimum prices of landed house for foreigners in North Sumatra and West Nusa Tenggara provinces have been increased from Rp 2 billion to Rp 3 billion.

Conversely, the government reduced the minimum price of apartment in Jakarta for foreigners’ ownerships from Rp 5 billion to Rp 3 billion.

Chairman of Real Estate Indonesia (REI) Eddy Hussy said that the revision of the minimum price of property for foreign ownership will not distract the demands for housing from the expatriates.

Drives the market

Eddy said that the price adjustment will drive the market of property for foreigners. Because, aside of increasing the price limit for foreigners in some regions, the government has also reduced the minimum price of property with the type of apartment for foreigners ownerships in Jakarta from Rp 5 billion to Rp 3 billion.

Chairman of the Association of All Indonesia’s Housing and Settlement Developers Eddy Ganefo said that the price increase will be helpful for the local people. “The lower price for foreigners will increase the housing prices for our people so that I think this is a right policy,” he said.

The property ownership for foreigners is included in the Government Regulation No 103/2015 on the Ownership of Housing or Settlement for Foreigners who Reside in Indonesia.

Based on the regulation, the government has allowed the foreigners to own landed house or apartment under the status of rights of use. The rights of use of housing for the foreigners in Indonesia will mature within 30 years and can be extended to another 20 years.

If the extension of the rights of use is matured, the foreigners still can extend the rights of use until maximum of 30 years. In other words, a foreigner, who resides in Indonesia, is allowed to have the rights of use of house or apartment at maximum of 80 years as long as the foreigner has residence permit in Indonesia.

(Muhammad Farid/Translator)