Overseas property buyers and investors may soon be able to purchase apartments throughout Indonesia, according to a government statement issued on Wednesday.
Although declining to provide precise details and a timeline, as well as announcing a relaxation on restrictions for property loans for locals, Finance Minister Bambang Brodjonegoro said his government will allow to foreigners to own luxury apartments priced at more than IDR5 billion (US$380,000).
The Governor of Bank Indonesia, Agus Martowardojo, also told reporters the Central Bank may cut the loan-to-value ratio for property and auto loans as soon as this month, allowing banks to finance buyers with lower down payments.
Martowardojo declined to give more details on the move, but previously has said the central bank will seek to maintain healthy growth in consumer loans while preventing price bubbles.
Buyers will have to pay a 5 percent witholding tax, deductible from their yearly income tax.
Indonesia’s economic growth in the first quarter slumped more than expected to 4.71 percent, hit by a far weaker commodity prices and lower government spending.
Image: Jakarta from 35th Floor Menara Imperium Kuningan” by Serenity. Licensed under CC BY-SA 3.0 via Wikimedia Commons.
Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg
