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  • Wednesday, July 11, 2012

    Allow Foreigners Buy Property in Indonesia

    Jakarta, (Analysis). The Government plans to allow foreigners to buy property in Indonesia because it could increase state revenues. But will be limited to the price and number of properties.

    Secretary of the Ministry of Housing (Sesmenpera) Iskandar Saleh said the restrictions on price and unit property owned by foreigners is still necessary to prevent fraud.

    "The ownership of property by foreigners will have an impact on increasing revenues directly. But regulations related to restrictions on the selling price of property and location that set the government still needed," said Iskandar was quoted from the site Kemenpera, Monday (9/7).

    Alexander admitted that he recognizes the difficulty to change the paradigm of a number of related parties of this issue of foreign ownership. However, it will continue its efforts to create a shared understanding of the parties and stakeholders in the housing and neighborhoods in order to avoid jealousy in it.

    Iskandar said, the restrictions on property ownership by foreigners is clearly needed. It was given the property prices in Indonesia are still fairly low compared to other neighboring countries.

    "At least the price is different from the price of such property for Indonesia Rp 5 billion per unit. For the location of their usual and convenient to find the best location to live," he said.

    He suggested that foreigners can only buy a new property units in the primary market in Indonesia rather than in the secondary market. It is also intended to increase the supply of new property units.

    In addition, the existence of government regulations that govern the issue also to anticipate fraud in the field of property law such as the use of names of local residents while funds for business property of a stranger.

    In addition, Iskandar delivered, until 2011, the capitalization of the entire project of national property, the housing sector is still dominated the real estate sector and the property is 45%.

    That number is up 8% from the previous year of 37% in 2010. While in the second rank, Project office / Rukan also increased by 2% from 16% in 2010 to 18% in 2011.

    On the other hand, apartment projects, both in Greater Jakarta and in the region has decreased. Capitalization value of apartment projects in the Greater Jakarta area fell 2% from 10% in 2010 to 8% in 2011.

    The same thing happened in an area that experienced a decrease of 3.6% in 2010 to 2.3% in 2011. Conditions are expected to continue to evolve according to a linear projection, in which the capitalization value of housing and shop / shophouse will continue to increase, while the vertical housing development is expected to decline.

    While the level of new home sales nationally in 2010 reached 243.428 units and increased by 26.4% to 307.800 units in 2011. 2010 home sales in the segment is dominated by home price under $ 70 million which is 52.87%.

    "But in 2011, there was a big increase in house secondary segmentation (segment price of USD 201 million-USD 500 million) is from 38,000 units to 70,000 units. Large and luxurious house (at a price in excess of one billion rupiah) and the lower middle house (with price of USD 71 million to USD 200 million) also experienced a substantial increase, which is about 44.2% for large and luxury homes, and 41.7% for medium-sized house down, "he explained.

    source www.analisadaily.com, reviewer; bang mul

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