






{"id":26689,"date":"2022-01-20T10:40:40","date_gmt":"2022-01-20T03:40:40","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=26689"},"modified":"2022-01-20T10:40:40","modified_gmt":"2022-01-20T03:40:40","slug":"indonesia-gives-green-light-to-foreigners-looking-to-own-homes-or-condo-units","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/indonesia-gives-green-light-to-foreigners-looking-to-own-homes-or-condo-units\/","title":{"rendered":"Indonesia gives green light to foreigners looking to own homes or condo units"},"content":{"rendered":"<p><span class=\"TextRun  BCX0 SCXW156211961\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun  BCX0 SCXW156211961\">This new decree will help drive the growth of the local real estate sector<\/span><\/span><\/p>\n<figure id=\"attachment_26690\" aria-describedby=\"caption-attachment-26690\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-26690 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/01\/shutterstock_1448658866.jpg\" alt=\"\" width=\"1000\" height=\"570\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/01\/shutterstock_1448658866.jpg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/01\/shutterstock_1448658866-400x228.jpg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/01\/shutterstock_1448658866-600x342.jpg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2022\/01\/shutterstock_1448658866-768x438.jpg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-26690\" class=\"wp-caption-text\">The foreign purchase of units or homes come with restrictions, such as plot size, minimum price, and number of land parcels or units in the development. AsiaTravel\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">President Joko Widodo (Jokowi)\u00a0has\u00a0announced a new regulation that\u00a0enables foreigners or foreign citizens to own\u00a0residential homes or\u00a0apartment\u00a0flats\u00a0in Indonesia,\u00a0reported\u00a0<\/span><a href=\"https:\/\/indonesiaexpat.id\/business-property\/foreigners-can-now-buy-apartments-how-will-this-affect-the-property-sector\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Indonesia Expat<\/span><\/a><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Government regulation no. 18 year 2021 consists of amendments to rules relating to unit flats, land rights, management rights, and land registry. This new decree is the result of the provisions of Article 142 and Article 182 letter b of law number 11 of 2020 regarding job creation, or what the general population knows as the Omnibus Law.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Article 67 state: \u201cOwnership rights to apartment units are granted to Indonesian citizens; Indonesian legal entities; foreigners who have permits in accordance with the provisions of laws and regulations; foreign legal entities that have representatives in Indonesia; or representatives of foreign countries and international institutions that are or have representatives in Indonesia.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">However, article 69 added that not all foreigners will be able to live and own a flat, clarifying that only individuals who have an official immigration permit are allowed to own a condo unit or residence.<\/span><\/p>\n<p><span data-contrast=\"auto\">The purchase of units or homes by a foreigner also come with restrictions, such as plot size, minimum price, and number of land parcels or units in the development.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Bambang Eka Jaya, the deputy general chairperson of\u00a0Real Estate Indonesia (REI), said that the approval of foreign ownership\u00a0could\u00a0lead to progress in the real estate industry, notably for the upper-middle\u00a0segment of flats valued over\u00a0IDR5 billion (USD349,000).<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The current demand for middle-class homes has been slow, shared Bambang. With its high rates, an increase in sales in this sector could drive growth.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/indonesian-president-unleashes-ambitious-plans-to-get-the-house-in-order\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Indonesian real estate on the cusp of reform<\/strong><\/a><\/p>\n<p><span data-contrast=\"auto\">\u201cNow, sales in the middle-class housing segment are practically suspended. In fact, in percentage terms, the number of units may be small, but the value is large. Imagine that one foreign transaction could be equal to 10 to 20 units of lower-middle property,\u201d he explained.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">This means that although the cap unit is only two percent, the value can equate to over 20 percent. Thus, REI is in agreement with the rule limiting foreign purchases of units by price.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The regulation also noted that\u00a0immigration documents are also needed for foreigners\u00a0looking\u00a0to own a house or residence,\u00a0further\u00a0highlighting that foreign ownership of a residential home or condo unit will only\u00a0come with\u00a0the usufructuary rights status.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Government regulation no. 18 year 2021 concerning\u00a0unit flats, land rights, management rights, and land registry\u00a0has been in effect since established\u00a0on 2nd February 2020.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><em>The Property Report editors wrote this article. For more information, email:\u00a0<a href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"nofollow noopener\">propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This new decree will help drive the growth of the local real estate sector<\/p>\n","protected":false},"author":9,"featured_media":26690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[2569,252,578,154,668],"class_list":["post-26689","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-condo-ownership","tag-foreign-ownership","tag-home-ownership","tag-indonesia","tag-investment","news_country-indonesia","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - 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