Indonesia extends property lease length to foreigners

balinews

Indonesia has allowed foreigners to own houses for up to 80 years in an effort to show a friendlier face to people who might come and bring investment with them. The Cabinet Secretariat said on its website on Tuesday that President Joko Widodo signed a regulation late last year giving foreigners the right to buy a landed house for three decades, with a possible extension of another 50 years. To be eligible, the foreigner has to live, work, or invest in Indonesia, and “provide benefit” to the country, the cabinet secretariat said. Under previous rules, foreigners could buy houses for 25 years, and extend for a further 25 years. Indonesia Allows Foreigners to Own Houses for Longer | Jakarta Globe

Markit

I think you missed the most important sentence in the article: [I]"Indonesia has [COLOR=#ff0000]already relaxed ownership rules for apartments[/COLOR], allowing foreigners to buy units worth more than 10 billion rupiah ($720,000)." [/I]Can anyone please show me where this one is written? Otherwise I call "bollocks" on the whole article.

Fred2

You want me to look it up markit???, It was some time ago, Ive heard news travels slow to the east coast

Nydave

With a POSSIBLE 50 year extension, The wording ( possible) makes me believe it's another bunch of bull s**t. If it said 30 years with a guaranteed 50 year extension then it just might make sence

davita

In bahasa Indonesia.....PEMILIKAN RUMAH TEMPAT TINGGAL ATAU HUNIAN OLEH ORANG ASING YANG BERKEDUDUKAN DI INDONESIA Document : PP Nomor 103 Tahun 2015.pdf The rule regarding the extensions are translated here.... Staying home on land granted right to use referred to in Article 4 letter number 1, is given for a period of 30 (thirty) years. (2) The right to use referred to in paragraph (1) may be extended for a period of 20 (twenty) years. (3) In case of an extension period referred to in paragraph (2) ends, Right of Use can be renewed for a period of 30 (thirty) years.

no.idea

balinews wrote To be eligible, the foreigner has to live, work, or invest in Indonesia, and “provide benefit” to the country, the

I would have thought that leasing the place up front for 25 years would be considered an investment. Long term lease prices in Sanur are 12 million per are per year. If I was to lease the land where I now live for another 25 years it would cost me $600,000. If I then invested money, I could lease it for another 50 years for another $1,200,000 (provided the same price is discussed). This news excites me no frigging end. I am going down the beach to invest some money in Bintang. Anyone have any of those red Bintang coupons they are not using?

davita

The new PP103/2015 that the article refers isn't much different to the one it replaces. The only advantage I see is that a foreigner who previously could have a leasehold or a Hak Pakai title for 25 years with a further 25 years.....has been extended some. It also clearly identifies those titles can be willed to a beneficiary. A disadvantage is the identification of who can benefit. Previously almost any foreigner could hold those leases but now it is clear the foreigner must have a stay permit (Kitas/Kitap). This may be a problem for those foreigners who have property in Bali but rents it out and lives somewhere else. This gives the men in tight shirts an opportunity to see who are actually living here and who are investing. Here is a link to a report in Jakarta Post which has a better explanation than the one above....Foreigners may own homes in Indonesia - The Nation

Markit

You want me to look it up markit???, It was some time ago, Ive heard news travels slow to the east coast

I know they were talking about it. The usual Chinese whispers and assertions but I have yet to see where it's been signed into law. Even this Jakpost article seems a bit confused: Foreigners may own homes | The Jakarta Post Some people are saying apartments for 5 bill and some for 10 - foreigners could always "own" leasehold on properties so I'm wondering if the changes re apartments will be freehold? Making the houses on freehold land heritable will be interesting if true. Course the kiddies would have to come live in Indo but that's not our problem then is it and the way laws are written and revoked here there could be any type of situation by then. And anyway I'm not going to die - just decided!