Property ownership rules in Indonesia will soon be relaxed allowing for foreigners to legally purchase luxury properties in the country. While plans have yet to be finalized, the government is aiming to push through the legislation sometime in next couple of months.
Sofyan Djalil, the coordinating minister for Economic Affairs, told reporters at a press conference last week, “We will discuss the technicalities. We will set up a coordination meeting to discuss this new regulation. Hopefully, in the next two to three months, all will be clear.”
Foreigners will only be allowed to own luxury apartments and will be subject to a number of restrictions including minimum buying limits. Djalil also noted that landed property would not be available for foreign ownership.
“If people from developed nations want to retire here or spend their winters here, then that will create jobs and boost spending power,” Djalil said. “It will make the property market live again.”
It is not possible for a non-Indonesian to own property in the country at the moment; however, some people have passed over these restrictions by using working with local citizens or through a long-term lease.
Other ASEAN countries including Thailand has similar restrictions on foreign ownership while some states in Malaysia have minimum buying limits like those being proposed by Indonesia.
Ray White Group Property chairman Brian White told the Australian Financial Review that the news is wonderful and said many Australians could take the opportunity to retire in Indonesia once the rules on foreign ownership are relaxed.
“As people get to retirement age, they want to know where they can get the best bang for their buck, not just in terms of property, but in terms of lifestyle and cost of living. Asian countries score highly,” he stated. “Lot of Australians have moved to Thailand and Malaysia. The number of Australians visiting our offices in Bali suggest similar appetite for real estate, but the current ownership structure could not be more unattractive.”
