Jakarta has a lot to offer young expats

JAKARTA. One way to survive the economic downturn in several debt-ridden European nations like Britain is to emigrate, and Jakarta — despite its many shortcomings — is seen as one of the best places for young expatriates seeking a better life.

“My job was depressing,” recalled an expatriate from Manchester who came to work in Jakarta seven months ago. He said that although he was paid less here than back home, he could save more money due to low living costs in Jakarta.

Despite its maddening traffic, severe air pollution and other problems endemic to Jakarta, many young expatriates have decided to leave their respective countries and try their luck in the capital.

Britain’s Daily Telegraph, quoting the Global Property Guide, recently listed Jakarta as one of the top 20 destinations to emigrate for young people. The economic potential, lack of language-learning requirements and low living costs are among the reasons that put Jakarta on the list.

It acknowledges that when it comes to property ownership, “buying is a bit of a legal nightmare” in Jakarta and that “good guidance is required”. But that has not deterred foreign migrants.

Italian national Akira Moretto, 30, said that although he had been living in the city for three years, Jakarta constantly surprised him each and every day.

“That is what makes life in Jakarta exciting, living in a city where things that should work do not work the way they should. In Jakarta, you will never know what’s going to happen once you step outside your door,” he said.

As a melting pot of diverse cultures and with the thrill that a megacity like Jakarta offers, Moretto has slowly come to adore the city, expecting to settle down someday. “I have my career here, some of my family members are here too, so staying here would be nice,” he said.

Moretto admitted that legal issues regarding property ownership was a problem for Jakarta’s thriving expatriate community. He once tried to buy an apartment, but his lawyer told him that it was better to rent.

A Singapore passport-holder who hails from mainland China, Jiang Lei, also had a similar experience. “I understand that expatriates can not buy a house, but there are still other possibilities, such as renting houses or apartments. I think it’s fair enough,” the 35-year-old IT engineer told The Jakarta Post.

Carrying out his own survey he found that those options could accommodate his family better compared to where they lived in Singapore, which does not feature on the list.

According to the Global Property Guide, apartments in Jakarta are reasonably priced at around US$1,500 per square meter. They also have good rental yields of around 10–30 percent.

Real Estate Indonesia (REI) chairman Setyo Maharso said the demand among expatriates for owning apartments in Jakarta was very high, at around 4,500 to 5,000 units each year.

“But for now, the best option available to foreigners is leasing. If only the regulations could be loosened up, it could attract more foreign investment,” Setyo said.

Law No. 5/1960 on Land Management prohibits foreigners from owning land or buying freehold apartments. Foreigners may lease property for 25 years that can be extended for further periods of 25 years and 20 years, or 70 years in total, as stipulated in the 1997 government regulation.

Besides Jakarta, three other cities in Southeast Asia featuring on the Telegraph’s list are Phnom Penh, Bangkok and Manila. Other cities include Shanghai, Berlin, Prague and Buenos Aires.

High unemployment due to the economic crisis and tighter competition in finding jobs are some of the reasons cited by young people leaving their countries and moving abroad.

The number of foreign residents in Indonesia, excluding tourists and foreign emissaries, rose by 6 percent to 111,752 last year, according to immigration office statistics.

The increase was mainly driven by the thriving economy, friendly atmosphere and political stability, counteracting all the usual negative news coverage of Indonesia worldwide. (Novia D. Rulistia and Tertiani ZB Simanjuntak/The Jakarta Post)