The new law draft about Cipta Kerja has been sparking controversies since its inception and throughout the time when it is consulted with the Indonesian parliament. Among many others, there is one section in the draft bill concerning real estate, which is about foreign ownership in Indonesia's real estate sector. The new regulation, however, is simple. Initially, the individual foreigners can only possess the right to use (hak pakai), now they are entitled to get the right of ownership over condominium (hak milik satuan rumah susun).
Coincidently, the minister of agrarian and spatial planning just mentioned this new particular regulation in the recent webinar with Indonesian real estate tycoons and promised it would be the magic pill to revive the real estate industry. Undoubtedly, this development brings new hope to the sector that is under constant hit by the COVID-19 pandemic and heading to the unchartered waters as the new normal is the new way of living. While the significance of this new regulation to boost the real estate industry is doubtable, the side effect could have massive implications for our economy and society. It is unknown whether such impacts have been studied and considered carefully by our lawmakers, or it is just missed or too complicated to understand.
Just days before we celebrate our 75th independence day and driven by the same unequivocal spirit, we proudly present you our latest article: Foreign ownership implications on Indonesia's real estate.
Either if you are an Indonesian or foreign individual and somehow got a vested interest in this matter, this long article might be worth it to read.
You may read and download the article by clicking the button below. This article is available in English and Indonesian. For those who interested to read Law Number 5/160, and Government Regulation Number 103/2015, we have provided links to download the documents in PDF format.
PS: We would always love to hear what is really in your mind, though, so if you want to discuss this further with us, please send a message through any communication channels.
Author: Restaditya Harris