Report: Indonesia to relax property regulations for foreign buyers

KUALA LUMPUR (July 25): Indonesia will soon relax rules for foreigners to buy homes in the country.

According to a report by the Straits Times, Agrarian and Spatial Planning Minister Sofyan Djalil said during a webinar session on Thursday that that the new property regulations “set to be ratified into law by the end of next month” (August), will enable “foreigners to have the same rights as Indonesian property buyers”.

"On this foreign ownership matter, God willing… we will have (the Bill that covers the matter) ratified into law by end-August," Sofyan said.

"That is the commitment from Parliament and President Joko Widodo had requested for such a timeline to be the deadline."

The report by the Singapore-based daily stated that at the moment, non-Indonesians are only allowed to buy apartments (not landed homes) and they are limited to 30-year leasehold titles for such properties.

This ruling made it “tough to get bank loans”.

Indonesians who buy properties “generally get a freehold tenure to their homes, or leaseholds with guaranteed extensions”.

Sofyan said President Joko’s government is “concerned with the current inflexible clauses of ownership and wants them changed”.

They are also “keen to upgrade the ownership title status given to foreigners when buying homes”.

The minister, however, did not give details on whether foreigners will also be allowed to buy landed properties.

Straits Times wrote that Jakarta’s “plan to loosen the property rules comes amid the coronavirus pandemic that has shrunk the economy and caused massive job losses”.

Stay safe. Keep updated on the latest news at www.EdgeProp.my 

Click here for more property stories