New Home Ownership Rules for Foreigners
Ability to purchase property in special economic zones aimed at spurring foreign investment
The Jakarta Post
Tuesday, August 25, 2015
Agrarian and Spatial Planning Minister Ferry Mursyidan Baldan said on Tuesday that he had proposed a regulation that would allow foreigners to purchase house properties in special economic zones.
Ferry said he hoped that with such incentives, foreign investors would be attracted to put more money in those areas.
“We had meetings with the economic coordinating minister and it is not impossible that we will give permanent residencies to foreigners who invest their money here,” he said, as quoted by kompas.com on Tuesday.
He also said that the regulation was possible, given that special economic zones had their own laws.
Under the administration of President Joko “Jokowi” Widodo, the government has made an unprecedented move to allow foreigners to own flats worth more than Rp 5 billion (US$357,232).
Such regulations, however, still forbid foreigners from buying landed houses. Nonetheless, it is still considered progress because under the old regulation, the government completely banned foreigners from purchasing any property in Indonesia.
Ferry said that in his proposal, foreign investors would be allowed to purchase landed houses in special economic zones in hopes of keeping foreigners in Indonesia and getting them to invest.
If it is approved, Ferry said the regulation would be effective by the end of this year.