Another interesting article date on Singapore's National Day 2016, about 2.5 years ago as of this post. There are some key information on the article that i need,
especially the 2nd photo i extracted into this thread in the article below...
As usual, i will hide most part for uninterested person and those interested simply click on the Spoiler Button to view the full article.
Foreigners Still Not Eager to Buy Property in Indonesia
Although the government of Indonesia recently decided to allow foreigners to buy landed houses and apartments in Indonesia (while setting a minimum value on property that foreigners are allowed to purchase), there are yet to surface reports of expats buying Indonesian property. There are several matters that can explain foreigners' lack of enthusiasm to invest in property in Indonesia. Indonesian property association Real Estate Indonesia (REI) has several proposals to make it more attractive for expats to buy real estate in Indonesia.
( Click to show/hide )Enggartiasto Lukita, Honorary Chairman of the REI who recently replaced Thomas Lembong as Indonesia's new Trade Minister in a cabinet reshuffle, stated that the easiest solution (to boost foreign appetite to buy property in Indonesia) would be to make it mandatory that all high-rise apartment building projects are developed on land under the so-called ‘right-of-use’ title (in Indonesian: hak pakai). He plans to discuss this matter with the Minister of Land & Spacial Planning and the National Land Agency (BPN).
In 2015 Indonesian President Joko Widodo signed a regulation that allows expats to purchase property under this 'right-of-use' title, up to a maximum period of 80 years (the expat buys the property for an initial period of 30 years but he can extend it twice, up to a total of 80 years). A new requirement for the foreigner is the minimum value that has been set on landed houses and apartment units. By setting very high minimum values it will only impact on the market's top end (hence not pricing out local buyers).
Actually, previously, foreigners could already purchase property under the right-of-use category. However, the latest change gives this title a more permanent character. Still, this 'right-of-use category is not as strong as the 'right-of-ownership category.
However, there are no Indonesian property developers that develop apartments under the right-of-use category as this category is not popular among the Indonesian population. Naturally, Indonesians prefer to have the stronger right-of-ownership (which lasts indefinitely). Therefore, many property developers may not agree with the plan of Minister Lukita as they could see a big portion of their market vanish. However, according to REI Chairman Eddy Hussy, property developers actually agree with this proposal, possibly because not many development projects qualify for the minimum value that has been set for purchase of Indonesian property by a foreigner.
The next hurdle is to allow mortgages for foreigners. Currently, local banks will not sell mortgages for property under the right-of-use title. Lukita therefore suggests to change this and allow property under the right-of-use title to be used as collateral when purchasing a mortgage. Currently a foreigner is still required to pay 100 percent in cash for the property under the right-of-use title.
It also remains unclear whether the foreigner who purchases property in Indonesia needs to live and/or work in Indonesia or can be a resident of a different country. According to the latest "speculation", the Indonesian government may allow non-resident foreigners to buy Indonesian property (and in fact give provide them with a five-year resident permit after the purchase as a bonus). We will wait for this story to crystallize.
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Some things in the above articles might have change (or tweet a little) for the better over the last 2.5 years. So i am still looking out as i type.
I read this article over a year ago,but keep it in tab in my Batam info vault but now decide to put it up here for compiling. Just sharing...