Indonesia: Government to ease restrictions for foreign property ownership
Description
In January, Indonesian Housing Minister, Suharso Manoarfa, was cited in several press articles to have announced that foreigners may be given the right to stay and own property in Indonesia.
Lucy Rumantir, Permanent Committee Head of Property Services for the Indonesian Chamber of Commerce, was cited in Tempo Interactive on 28 January 2010 saying that expats are allowed to hold fixed-term housing leases of up to 25 years (although they are permitted one extension for another 25 years) and that an amendment of Regulation PP No. 41/1996 - which was expected to enter into force in May 2010 - extends foreign property ownership to 70 years and eases restrictions. According to Jakarta Globe (5 May 2010), the maximum 70-year length of title is now in force.
Since January, a new proposal to allow foreigners to own property in Indonesia for 90 years has been backpedaled by the governement and will now only simply the extension process. The changes are contained in a new regulation which will be presented to President Susilo Bambang Yudhoyono for approval before the end of May. The regulation is expected to enter into force two months after the approval.
This measure improves competition in the Indoesian housing market, foreigners in Indonesia benefit by improved access to real estate and it is likely to attract more FDI into Indonesia.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | Don't know |
| Is there any evidence that alternatives to the proposed measure were considered? | Don't Know |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | Don't Know |
| Was such evidence identified? | Don't Know |
| Is such evidence publicly available? | Don't Know |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | Don't Know |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | Don't Know |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | Don't Know |
| Did the government state its intention to review the measure within one year of implementation? | Don't Know |
Date Discovered: 28/01/2010
Implemented: No
Date of inception:
GTA Evaluation: Amber
Source:
- Jakarta Globe, 7 January 2010 (http://thejakartaglobe.com/business/indonesian-government-may-unlock-rea...)
- Bisnis, 8 January 2010 and 11 January 2010
- Property Report Asia, 7 January 2010 (http://www.property-report.com/property-news-top-stories.php?id=3023&dat...)
- Tempo Interactive, 28 January 2010 (http://cempaka-sam.blogspot.com/2010/01/foreign-property-ownership-to-be...)
- Bali Property Laws, translation of PP No. 41/1996 (http://www.balilandexplorer.com/bali-property-laws.htm)
- Jakarta Globe, 5 May 2010
Government Response:
- 919 reads
