Indonesia mulls to allow foreigners to own properties in Indonesia 2018
Foreigners to own properties in Indonesia
The Indonesian government is preparing a land bill, which among other things, allows foreigners to own properties in Indonesia. This construction is based on building-use permits (HGB).
“In the bill, the government proposes several changes, including to allow foreigners to have apartments, whose construction licenses are in the form of HGB,”. Agrarian and Spatial Minister Sofyan Djalil said in Jakarta on Wednesday as reported by kontan.co.id.
The existing basic law prohibits foreigners to own properties in Indonesia. It is so from either fully owning plots of land or controlling property and land construction based. This means that by law, a foreigner must be associated to a local which must own the half of it. Obviously, this is something that makes the most of the foreigners interested on buying properties in the country feel unprotected and back off, unless they have a very confident relationship with a local.
Sofyan, however, stressed the bill was still in its early stage. Before it is submitted to the House of Representatives for deliberation, it will be discussed by government officials.. Nevertheless, this law would increase consistently the confidence for foreigners buyers to enter in the Indonesian market.
The archipelago of Indonesia lists more than 17000 islands. Bali, is just one of them. It is a very tiny piece of land that conformed the country. Still, the one that generates the 95% of the country’s profits in tourism. It is not silly to strongly believe that if this law moves froward, the amount of expats that would start buying land or properties will increase exponentially, so for sure, this is good news for all of us who are already in love with this amazing country and will be looking forward to hearing from this very soon as a set up decision.