September, 2011
Real Estate Regulation in Indonesia
Posted on September 1, 2011 |
The real estate Law of Indonesia is under the Agrarian Law of the country. There is a specific policy that is clearly stipulated in that law. The ownership or having the right purchase of property in Indonesia is an exclusive right that Indonesian citizens have. However, it is possible to build a property but the ownership must remain of an Indonesian citizen. This simply means that foreigners are stripped off the right to find an Indonesia property for sale.
Although it is prohibited to actually purchase an Indonesia real estate for sale, when it comes to foreign investment, there is no limitation. This is specifically discussed in the Presidential Regulation of the Republic of Indonesia Number 77 of 2007. Another right that foreigners may have is also discussed under the ‘Law of Condominium’. In this law, foreigners can become owners since it is not considered a personal ownership but a common ownership. The developer of the strata or the condominium reserves his full rights to divide the property even before the production of the titles.