Allow the President For Property Ownership by Foreigners

Issues of property ownership by foreigners, is not a new thing discussed in Indonesia. Later, this re-bloom discussed since President Joko Widodo stated that ownership by foreigners is allowed primarily for regional competition. According to the Chairman of the Central Executive Council of Real Estate Indonesia (REI) Eddy Hussy, REI has long been proposing this case, when the government approved, will have a positive impact on the property sector is declining as it is today.

Broad market and property prices are still reasonable, making foreign workers happy to invest in Indonesia. Increasingly, foreigners (foreigners) who lived and worked in Indonesia more. The WNA this need somewhere to stay and they clearly prefer to stay in their own place. Therefore, the need continues to increase occupancy. In addition, Indonesia is one tourist destination abroad. If the foreigners own property in Indonesia, they will often return to Indonesia, and earnings of foreign exchange increases.

The government's decision is still to be discussed further, particularly the type of property that can be owned by foreigners. Minister of Finance (Finance), Bambang Brodjonegoro confirms that foreigners are only allowed to have the luxury or the super luxury apartments, not the others. For now, the luxury category is Rp. 5 billion, for the super luxury category is certainly greater than that. With the ownership by foreigners, Indonesian tax revenues also will be helped. Purchasing property will be subject to Sales Tax on Luxury Goods (Sales Tax) of 20%. With the luxury sales tax revenue, the tax revenue target could be achieved.

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Actually on Government Regulation No. 41/1996, stated that foreigners may own a home footprint. But that must be observed is the house built on land owned by the state or the right to use the land owner's consent. This agreement is written in a certain period of time, but not more than 25 years. To be able to have it all, the foreign national must have pocketed Permit Live. So that the foreigners do not hold fully and freely on the property ownership, especially now Bambang has asserted regarding this property.

REI also asked for other things to be considered by the President, namely that foreigners have the same freedom to the citizen in the purchase of the property. If this is approved, they will be able to buy a house is not fancy or super luxury category. This is what to watch out, do not let the prices rise sharply, and the purchasing power of Indonesian people. This is the most important thing that should be avoided, lest this policy will actually harm the people of Indonesia.

This decision is yet to be better, and can not be ascertained in the near future. If the President permits, later there are laws that should be changed about the rules of ownership of land and buildings by foreign nationals. Presidential Regulation should also be submitted to the  Badan Pertanahan Nasional (BPN) / State Land Agency. Hopefully, the decision will apply are the best and profitable for all parties.