Indonesia plans emergency law to allow foreigners buy property
The Indonesian government is proposing an emergency law – similar to a president’s decree – to end a lengthy limbo in reforming the country’s real estate regulations that prevent foreigners from acquiring property and have been under review for more than a decade by various governing bodies.
According to Luhut Pandjaitan, Coordinating Minister for Political, Legal and Security Affairs, the existing laws are in dire need to get amended in order to attract more foreign investment in the sector.
Through an emergency law – known as a perppu -, foreigners would be allowed to own apartments in Southeast Asia’s biggest economy.
While there were numerous attempt to reform the old laws, changes were never implemented because the basic stipulation under Indonesia’s 1960 Agrarian Law is that foreigners just cannot own any homes in the country.
“But the era has changed now. The property sector needs a reform so we could attract foreign investment. Foreigners should be allowed to buy apartments – but not landed houses – even if they don’t hold Kitas (Indonesia’s residence permit),” Luhut told The Straits Times. It was a concept similar to that in Singapore, he added.
Indonesia’s Constitution gives the President the right to issue a rule in lieu of law (perppu) when he determines that an emergency in the country requires it. A perppu is immediately effective after the President signs it, and Parliament can either let it remain effective or end it within a year after the perppu is issued.
The decree would open the property market for foreign investors, removing another obstacles hindering the government reform programme. Issuing a perppu is a normal practice that some foreign governments, such as the US, also use, Luhut said, adding that the term used in the US is “Presidential Act”.
[caption id="attachment_28473" align="alignleft" width="300"] Jakarta's skyline[/caption] The Indonesian government is proposing an emergency law - similar to a president's decree - to end a lengthy limbo in reforming the country's real estate regulations that prevent foreigners from acquiring property and have been under review for more than a decade by various governing bodies. According to Luhut Pandjaitan, Coordinating Minister for Political, Legal and Security Affairs, the existing laws are in dire need to get amended in order to attract more foreign investment in the sector. Through an emergency law - known as a perppu -, foreigners would be allowed to...
The Indonesian government is proposing an emergency law – similar to a president’s decree – to end a lengthy limbo in reforming the country’s real estate regulations that prevent foreigners from acquiring property and have been under review for more than a decade by various governing bodies.
According to Luhut Pandjaitan, Coordinating Minister for Political, Legal and Security Affairs, the existing laws are in dire need to get amended in order to attract more foreign investment in the sector.
Through an emergency law – known as a perppu -, foreigners would be allowed to own apartments in Southeast Asia’s biggest economy.
While there were numerous attempt to reform the old laws, changes were never implemented because the basic stipulation under Indonesia’s 1960 Agrarian Law is that foreigners just cannot own any homes in the country.
“But the era has changed now. The property sector needs a reform so we could attract foreign investment. Foreigners should be allowed to buy apartments – but not landed houses – even if they don’t hold Kitas (Indonesia’s residence permit),” Luhut told The Straits Times. It was a concept similar to that in Singapore, he added.
Indonesia’s Constitution gives the President the right to issue a rule in lieu of law (perppu) when he determines that an emergency in the country requires it. A perppu is immediately effective after the President signs it, and Parliament can either let it remain effective or end it within a year after the perppu is issued.
The decree would open the property market for foreign investors, removing another obstacles hindering the government reform programme. Issuing a perppu is a normal practice that some foreign governments, such as the US, also use, Luhut said, adding that the term used in the US is “Presidential Act”.
