Foreigners Able To Own Property in Indonesia in 2011

11 Mar 2011 | by: Nenad

Chairman of the Indonesian Invenstment Coordination Agency (BKPM), Mr. Gita Wirjawan, was quoted saying today that he is confident that the Indonesian Parliament will pass by third quarter of 2011 a draft bill that will regulate foreign ownership of the land and land clearance: “Talks have been conducive and we’re confident the bill will receive parliamentary approval by the third quarter” Mr. Wirjawan told reporters on the sidelines of a seminar in Bali.

Most analysts agree that foreign ownership of the land will give a strong boost to the Indonesian real estate market, both to the residential and commercial sub sectors. Presently in Indonesia foreigners can not own the land and can only lease for a specific period.

The land clearance changes will allow for faster realization of the needed large infrastructure projects – presently many construction companies are faced with large losses since sometimes small number of people are unwilling to sell their land or land price negotiation can take more than a year. This land acquisition law is expected to cut in half the time needed to start infrastructure projects.