Minimum prices revised for Indonesia foreign property ownership.
Source: Indonesia Investments
The Indonesian government revised the price mechanism for property that can be bought by expats under the “right-of-use” category. Through Agrarian and Spatial Planning Affairs/National Land Agency (BPN) Regulation No. 29/2016 on Procedures for the Granting, Relinquishment and Assignment of Ownership Rights over Residential Homes or Housing by Foreigners Resident in Indonesia, it changed a couple of the minimum prices set on property (divided by region and the type of property).
In 2015 the Indonesian government decided to allow foreigners to “own” luxurious apartments and landed houses under the extended “right of use” category (as opposed to the much stronger “right of ownership” category). However, the government set minimum property prices – and rather high ones – in order to protect the Indonesian people in the property market as there were concerns that foreigners would buy a high amount of houses and apartments if they would be allowed to buy the cheaper property units.
The latest revision sets higher minimum prices for expats who want to buy landed houses in Yogyakarta, Bali and North Sumatra. Meanwhile, the minimum price for apartments in Banten has also been raised. Only the minimum price for the purchase (by expats) of apartments in Jakarta has been reduced in a bid to attract property purchases.