IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 May 2010 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

In January 2010, 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 (after two restrictions) 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 government and will now only cover 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.
 
Update
On 28 December 2015, the Indonesian government extended the maximum time a foreigner can own property up to 80 years (cf. Related Measures). As this does not cancel but simply extends the liberation mentioned above, this measure remains in force.

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