A change in the rules surrounding the purchasing of property in Jakarta means it will be possible for expatriates to buy homes in the city.
Indonesia is currently enjoying a period of strong economic growth, which has led to more and more expats deciding to move to the country.
With this in mind, the demand for rental property from such foreigners has increased exponentially with prices going up by 15 per cent this year alone, reports the Telegraph.
It is thought that a similar phenomenon will occur with the purchasing of property now that expats are to be allowed into the market.
Foreigners working in Jakarta are particularly keen to live near the centre of the city and this means that landlords with good quality apartments in the area are seeing much competition by tenants.
It is thought there are around 45,000 expats living in such high-end accommodation within striking distance of the city’s business districts.
Under the new proposals by the Indonesian government, the property market will be opened up to expats, while restrictions will still be placed on the purchasing of land.
In order to buy a home in Jakarta, foreigners will need to apply for a Building Ownership Certificate, which will have to be shown when the process of purchasing has begun.
Neil Jensen, Asian head of operations for Fraser & Co, said: “Currently the law is very similar to that in Thailand whereby your only opportunity to own property or land is if it is bought in the name of a local national – typically a spouse or close friend.
“The new ruling will apply to specific buildings and at this stage it is only likely to be available in Jakarta, Bali and Batam with a further caveat that foreign ownership of any qualifying building will be capped at 40 per cent.”
It is thought that when expats can own their own homes in Indonesia they will provide more in terms of tax to the country’s economy.
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