Foreign Ownership Would Triple Indonesia's Property Sector, Says Industry

by Irvan Tisnabudi

..." /> Foreign Ownership Would Triple Indonesia's Property Sector, Says Industry

by Irvan Tisnabudi

...">
Foreign Ownership Would Triple Indonesia's Property Sector, Says Industry

by Irvan Tisnabudi

A government plan to allow foreign nationals to buy houses and condominiums would provide an important boost to the economy, likely more than tripling the property sector’s contribution to 10 percent of GDP, industry players said on Tuesday.

“Currently, the property sector only contributes 2.7 percent to our national gross domestic product, but with the government regulation [on property ownership] revised, it’s possible that the contribution could be increased up to 10 percent,” Teguh Satria, chairman of the Indonesian Real Estate Developers Association (REI), said at the organization’s national congress.

“In comparison, Singapore gets about 35 percent of its GDP from its property sector, as foreigners are already allowed to own properties there,” he added.

Housing Minister Suharso Monoarfa last week said he planned to revise current regulations limiting ownership of property by foreign nationals by May or June. The change would allow foreigners to buy and own condominiums in large cities such as Jakarta and houses in special economic zones such as Batam.

James Riady, a property developer and deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin), argued that relaxing the laws on foreign ownership of property would provide local industry with an important stimulus.

“Not only will foreigners benefit from owning properties in Indonesia ... but the nation will be given a financial boost from the purchases. They would support the industrial sector, which has to be supported to face the recent free-trade agreement [with China],” he said.

Riady’s Lippo group spans property development, health care, education and media. The Jakarta Globe is affiliated with the group.
<span style="font-size: 14pt"><span style="font-weight: bold">Foreign Ownership Would Triple Indonesia's Property Sector, Says Industry</span></span><br /> <br /> by Irvan Tisnabudi<br /> <br /> A government plan to allow foreign nationals to buy houses and condominiums would provide an important boost to the economy, likely more than tripling the property sector&rsquo;s contribution to 10 percent of GDP, industry players said on Tuesday.<br /> <br /> &ldquo;Currently, the property sector only contributes 2.7 percent to our national gross domestic product, but with the government regulation [on property ownership] revised, it&rsquo;s possible that the contribution could be increased up to 10 percent,&rdquo; Teguh Satria, chairman of the Indonesian Real Estate Developers Association (REI), said at the organization&rsquo;s national congress.<br /> <br /> &ldquo;In comparison, Singapore gets about 35 percent of its GDP from its property sector, as foreigners are already allowed to own properties there,&rdquo; he added.<br /> <br /> Housing Minister Suharso Monoarfa last week said he planned to revise current regulations limiting ownership of property by foreign nationals by May or June. The change would allow foreigners to buy and own condominiums in large cities such as Jakarta and houses in special economic zones such as Batam.<br /> <br /> James Riady, a property developer and deputy chairman of the Indonesian Chamber of Commerce and Industry (Kadin), argued that relaxing the laws on foreign ownership of property would provide local industry with an important stimulus.<br /> <br /> &ldquo;Not only will foreigners benefit from owning properties in Indonesia ... but the nation will be given a financial boost from the purchases. They would support the industrial sector, which has to be supported to face the recent free-trade agreement [with China],&rdquo; he said.<br /> <br /> Riady&rsquo;s Lippo group spans property development, health care, education and media. The Jakarta Globe is affiliated with the group.<br />
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seems mr riady is using his Jakarta Globe to push commercial agendas. who would have thought?

this property-ownership-for-foreigners story has been dusted off annually for at least 10 years now. but i guess with the glut of apartments in jakarta, there is added incentive for the developers to push for change.

but don't hold your breath on this one.
seems mr riady is using his Jakarta Globe to push commercial agendas. who would have thought?<br /> <br /> this property-ownership-for-foreigners story has been dusted off annually for at least 10 years now. but i guess with the glut of apartments in jakarta, there is added incentive for the developers to push for change.<br /> <br /> but don't hold your breath on this one.
KuKuKaChu: dangerously too sophisticated
Agree kuku -- plus I dont see many "non-indonesians" wanting to buy apartments anyway. Have you had a look at the new ones going up? So small you cant swing a cat in them!
Agree kuku -- plus I dont see many &quot;non-indonesians&quot; wanting to buy apartments anyway. Have you had a look at the new ones going up? So small you cant swing a cat in them!
Edited by Piss Salon
Edit Reason: taste
buying an apartment in the best of circumstances is a bit of a gamble. in indonesia, with the complete lack of a responsible maintenance culture, the average foreigner would be mad to buy.

even indonesians don't like them. although there is a perception among indonesians that people who live in apartments are "high class", a cursory examination of any established apartment block in the evening reveals that very few are actually occupied! rich indonesians buy them as "investments", but never actually live in them. at best, they are used as dumping places for useless relatives, or as love nests for their concubines.
buying an apartment in the best of circumstances is a bit of a gamble. in indonesia, with the complete lack of a responsible maintenance culture, the average foreigner would be mad to buy.<br /> <br /> even indonesians don't like them. although there is a perception among indonesians that people who live in apartments are &quot;high class&quot;, a cursory examination of any established apartment block in the evening reveals that very few are actually occupied! rich indonesians buy them as &quot;investments&quot;, but never actually live in them. at best, they are used as dumping places for useless relatives, or as love nests for their concubines.<br />
KuKuKaChu: dangerously too sophisticated
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