New Rules For Foreigners To Own Property In Indonesia?

New Rules For Foreigners To Own Property In Indonesia?
Photo by Tom Bixler on Unsplash.

It’s not easy to find news that it isn’t all doom and gloom these days. If it isn’t about fear or death rates, it’s about lockdowns and second waves.

So when some good news finally finds its way through the darkness of negativity it’s worth having a look at. Especially if it addresses the ongoing attempts by Jokowi’s administration to attract more Foreign Direct Investment (FDI) into Indonesia.

The Ease of Doing Business in Indonesia is something the administration has been working towards for a number of years. The much-anticipated Omnibus Law for example, is expected to address this. So too is the revision of the Negative Investment List (NIL) to the Positive Investment List (PIL) and a slew of financial reforms and stimulus packages all geared to boosting domestic and foreign investment.

Now, the degree of urgency to attract investment has changed gear. We can blame that on Covid-19’s economic Armageddon. And we want to share initiatives like this with you because our aim is to help boost your business, your brand growth and prosperity. We want to help you expand your market capabilities and develop appropriate strategies.

Here’s what’s happened. Towards the end of last week, local and regional news wires like The Straits Times and outlets like Indonesia Expat and Invest Islands ran stories on the Indonesian government’s plans to make it easier for foreigners to own land.

According to the reporting, Sofyan Djali, the Agrarian and Spatial Planning Minister said “we will have (the new property rules) ratified into law by end-August.”

Indonesia Expat are also reporting the laws will allow foreigners to have the same rights as local Indonesian buyers. And that includes applying for home loans and mortgages.

It is not yet clear what “having the same rights” means. Current regulations only allow foreigners who are resident in Indonesia to own property under a Hak Pakai title. This can easily be converted back to Hak Milik should an Indonesian national purchase.

However, we don’t believe new regulations will allow foreigners to own Hak Milik (as an Indonesian would). We believe this would undermine the Indonesian Constitution and Agrarian Law.  But what we do think will happen is foreigners will now be allowed to purchase using an HGB title.  And possibly even take out a mortgage to do so.

Terje Nilsen, CEO of Seven Stones Indonesia says “the potential of a foreigner being allowed to hold an HGB title inline with Indonesian citizens is a game changer. If it also allows for foreigners to mortgage in Indonesia it will open up a much larger market than in the past when it was all cash driven. This will encourage foreigners to chose Indonesia as a first or second home option. Especially now when more and more people work from home. And they can call Bali, and other places in Indonesia home.”

SEVEN STONES INDONESIA is headquartered in Bali and specializes in residential and commercial property sales and rentals both in Bali and neighbouring islands. The company offers legal, marketing and fund management services and covers a wide range of investment opportunities from off-plan developments to infrastructure projects.

We are a customer-centric company that believes in authentic engagement to deliver lifetime value to and for all stakeholders with the aim of boosting business, brand growth and prosperity for clients and partners alike.

Find out how we can help you and send an email to: hello@sevenstonesindonesia.com

Sources: Indonesia Expat, The Straits Times, EdgeProp

Useful links:
What the rules are all about: owning property in Indonesia

So, what’s this Omnibus Bill all about?
Indonesia is open for business – work permits for foreigners relaxed

#sevenstones #sevenstonesindonesia #balirealestate #baliproperty #homeownership #hakpakai #hakmilik #HGB #owningpropertybali #buyavillabali #agrarianlaw #foreignownership

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Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

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Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.