Apartment Buying

Dec 17th, 2006, in Business & Economy, by

Foreigners may soon be able to buy apartments.

The government, says the Jakarta Post, seems likely to issue a regulation next year that will allow foreigners a restricted right to own some forms of property, such as apartments.

Indonesian Chamber of Commerce and Industry (Kadin) chairman Muhammad S. Hidayat said that it remains unclear precisely what types of property are involved, although it seems likely that apartments will be the main type. Hidayat claimed that President Susilo Bambang Yudhoyono had, in principle, agreed to open the country’s property market to foreign buyers.

It was agreed during a discussion last month with the President, National Land Agency (BPN) chairman Joyo Winoto, property developer Hendro Setyawan and myself, that a form of foreign ownership would be legalized in 2007.

Speaking at the annual meeting of the Indonesian Real Estate Developers Association (REI) in Jakarta, Hidayat said a presidential regulation would likely be issued to permit foreigners to own some forms of real estate as revising the existing Real Property Law would take too long.

There is a legal breakthrough on the cards. We expect that it will take the form of a presidential regulation. I have suggested that title take the form of a fixed-term building use right (HGB), up to a maximum term of 70 years.

Under a 1996 regulation on foreign property ownership, foreigners are only allowed to purchase fixed-term HGB titles up to a maximum of 25 years. However, besides the term being very restrictive, the regulation has never actually been implemented on the ground.

As a follow up to the discussion, Hidayat said, the BPN chairman had invited REI members, notaries and others to participate in further discussions with a view to drafting the new regulation.

Hopefully, the regulation will be put on the books in 2007. Given this, I hope that foreigners will become more willing to invest in Indonesia.

Hidayat, who was also a former REI chairman, said that the real-estate industry had long been urging a change in the regulations so as to allow non-nationals to purchase property in Indonesia, but progress had only recently begun to be made.

This matter has been a topic of recent discussion, see also Rights of Use on Property, no action as of yet.


44 Comments on “Apartment Buying”

  1. Andrew says:

    You’re welcome, Joy 🙂

    I hear you, I myself have similar – if not exactly the same – situation. I am a Chinese descent, but my extended family is a good example of “unity in diversity”:
    my eldest uncle is married to a Dutch lady,
    my youngest aunt to an Australian guy,
    my elder aunt to an Arab-descent,
    my other uncle to an Ambonese,
    his oldest daughter (my cousin) to a Javanese,
    his second son to a Dayak(nese?),
    the third son to a Padang(nese?),
    and his youngest daughter to an Acehnese.
    Another cousin is married to a German.
    As for me, I used to have a Japanese girlfriend… but pssst, don’t tell my wife. :))

    Given that, it is totally unimaginable for me to judge people based on race and/or religion. Maybe Achmad and Daryono can’t change the composition of their family, but they for sure can find a mix of friends from other cultures.

  2. Tomaculum says:

    Andrew,
    my wife is a caucasian european. I have a similar situation in my family.
    In Europe I undergo racist treatment, not only by the caucasian european, but also by Indonesian officers and students (I am a mixed blood) and others (Turks, Russian, Arabs etc.). But I don’t hate them, I have learned to be tolerant.
    To a group of people I can not be tolerant: such like Daryono and A. Sudarsono.
    For me they are simply sick.

  3. Andrew says:

    Yep Tom, let’s see what other funny things they come up with.

  4. Dimp says:

    In Europe I undergo racist treatment, not only by the caucasian european, but also by Indonesian officers and students (I am a mixed blood) and others (Turks, Russian, Arabs etc.). But I don’t hate them, I have learned to be tolerant.

    Hi Tom,

    Living in a different culture can be hard, I do get unfair treatment from time to time because I look different than them, I used to get very angry because of this, but now I just laugh it off and think positive. You cannot change the world, but you can change yourself.

  5. Ihaknt says:

    Dimp, at least where you are, if the situation gets really bad then you can sue them for discrimination. What do you mean you look different? Do you have a third eye?

  6. Dimp says:

    Dimp, at least where you are, if the situation gets really bad then you can sue them for discrimination. What do you mean you look different? Do you have a third eye?

    No third eye, but unfortunately, I have been blessed with very good look.

  7. Joy says:

    Andrew,
    Oh my goodness, throw in some Balinese and Irishman then your family could be mine, too. I am from chinese descent, but my great-grandma was Indonesian (orang Betawi). I have 8 keponakan and 4 of them are Moslem (yup, my sister in-law is a nice Indonesian Moslem lady).

  8. Achmad Sudarsono says:

    Friends,

    For the sake of a social experiment, I fought my feelings of intense nausea and went to Jalan Jaksa last night. There I observed the Bule in his natural habitat. Indeed, he was mostly engaged in peaceful, albeit distateful pursuits of drinking Bir Bintang. I tried to ply one of the cleaner, less-offensive looking ones with some crude pleasantries, but his Australian accent was incomprehensible: “Hazzzaaa Gaaahn Maaaiteee !!! Yew bewdy !!”.

    I also noticed some swarthy and sinister-looking Nigerians. It is a group, I fear, that has been overlooked in our discussions. Just what those inky fiends were up to I don’t know. It can’t have been for good. Although every fibre of my Indonesian being screams out against the injustices done to our beautiful country for 350 years by Belanda, maybe in Africa it was necessary.

    Are these really the people we want buying Apartments in Tanah Air ? Patung, thank you for hosting this thread, and I’m not trying to insult anyone, just share and make a Friend.

    Achmad

  9. Dimp says:

    Hi Achmad,

    I have also observed someone in his natural habitat, a sad case of human actually belittling others. Someone who judges others by observing one bad example and applying it generally to the whole population / race.

    I just hope that the others don’t observe you and judge all Indonesians based on you.

    Wonder what those people observing you will think… hmm.. Indonesian, full of paranoia, thinking that he is better than other cultures, yet still beg for money…. sad.

  10. Grace and Mercy says:

    Let’s not fall into the trap Achmad has set up here. By not flaming the flame it will subside on its own.

  11. Tomaculum says:

    A. Sudarsono,

    There I observed the Bule in his natural habitat. I also noticed some swarthy and sinister-looking Nigerians. It is a group, I fear, that has been overlooked in our discussions

    Thanks for attesting my impression about you.
    And: the Nigerians you’ve seen there are also white skinned? 🙂

    There I observed the Bule in his natural habitat.

    And your natural habitat is among zealots insulting the name of your own God by misinterpreting his teachings and flavouring it with your “knowledge”? 🙂

    Although every fibre of my Indonesian being screams out against the injustices done to our beautiful country for 350 years by Belanda, maybe in Africa it was necessary.

    And in the last 61 years Indonesian people like you can not do nothing to build up the country and just complaining about things happened long time ago? No wonder! What about the Japanese occupation? Oh, sorry, you use surely a Toshiba note book and watch Panasonic-TV and the Japanese are indeed not white skinned and they are your “saudara tua” (elder brothers”), 🙂

    For the sake of a social experiment.

    Would be interesting to examine your natural habitat though my feeling of intense nausea.

    Grace and Mercy, you’re right. Either Achmad is like what he wrote or he is a MOSSAD agent tryng to destabilise Indonesia.

    Thanks too you too Patung for allowing this my last comment about Achmad. 🙂

  12. Achmad Sudarsono says:

    Friends, Grace and Mercy, Tomalcum, Ihaknt, Dimp, and others.

    I feel this forum is an enriching one, so thanks again to Sdr. Patung for setting it up. Once again, I just want to share information, exchange ideas, and make Friends, like with you all.

    There is no begging. When I applied for AUSAID, USAID, Ford Foundation, and other schemes from the U.S., U.K. and Australia, the application process was rigorous. But I’m a bit disappointed. When the Ford Foundation asked me why I want to go to America, and I say: “to make Jihad”, they said I had ‘bad attitude.’

    Pak Tomalcum (can I call you ‘Tompel’ he he he ; P), ‘swarthy’ means dark, chocolatey, or, ‘itam’, like a Nigerian fresh off the boat.

    I am not from Mossad, but I look forward to more fruitful discussions in the future to help build our beautiful country.

    Achmad

  13. Tomaculum says:

    I am not from Mossad, but I look forward to more fruitful discussions in the future to help build our beautiful country.

    Good idea A. Sudarsono, good idea. I hope you develop any ability to do it someday, my grandson.

    ____________

    And A. Sudarsono,
    I know the meaning of swarthy (dark skinned and not black as black and it is usually used to describe east Mediterranean people). But my comment was related to the fact, that in your further comments you just insult the white skinned.
    And, the word “swarthy” is frequently used with racist intention, that’s why I wrote this:
    Thanks for attesting my impression about you.
    🙂

  14. Setiawan says:

    Hai,

    Apart from those who give comments, arguments, brain-storming, and so on,
    I would like comeback to the ‘original-topic’ about Laws/Regulations buying apartments for Non-Indonesian in tanah air tercinta Indonesia.
    I re-qoute below the topic from above:
    ” ….It was agreed during a discussion last month with the President, National Land Agency (BPN) chairman Joyo Winoto, property developer Hendro Setyawan and myself, that a form of foreign ownership would be legalized in 2007….”

    Any latest news about that?, is there somebody can give me an info?
    Since today has in a month of September 07(2007 nearly ends)

    Thanks
    Setiawan

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