How a Foreigner can own or buy property in Indonesia has always been a hot issue. And just today per 14 April 2016 Rules has been established and reported in today newspapers 17 April 2016.
It relies on the President's putting out a new instructions law on Foreign ownership:
Peraturan Pemerintah Nomor 103 tahun 2015
And then it is implemented by the Coordinating Minister for Land:
Peraturan Menteri ATR/Kepala BPN Nomor 13 tahun 2016
http://properti.kompas.com/read/2016/04 … aign=Kknwp
Though the rules are still out of reach of many ordinary foreigners, and appeals mostly currently in Bintan, Batam and Bali - seemingly holiday homes.
The structure of the rules has been clarified in the Minister application. And this is how it is going to be implemented.
1) Need to be a resident of Indonesian
The foreigner must hold a permit to stay in Indonesia. For working here or investing a business here.
2) Hak Pakai meaning Ownership Usage
The limit is on ownership usage and not freehold title. But it can be renewed with certainty as long the owner has continued residency here in Indonesia.
3) Type of Property
Must be a new property/ land from developer. And cannot be second hand property.
4) Price of Property
Follows the highest price of the property in that district/Zone. Thus the Minister will provide the minimal price the property that can be bought into.
An example is given by the Minister, in Jakarta:
House with land: 10 M Rupiah (10 billion)
Apartment/Condominium: 5M Rupiah (5 billion)
5) Can be Passed on/ Will to
Can be passed on to another foreigner with a permit residence
Can be passed on to an Indonesian
Can be passed on to the next of kin.
6) 1 year time to divest out the property
If the foreigner does not stay in Indonesia or lose the right or passed on the property to someone who does not meet the requirements.
The government will hold an auction bid in 1 year time. The proceeds will be given to the foreigner/estate and deduct out the associated costs.
Hope that helps in understanding.
Look out for further ease or tightening in the future.
However, the certainty has been clarified and under proper law now.
The aim of the laws is still to attract foreign investors who has businesses here in Indonesia and wanting to have a second home in Indonesia.
A 5 M or 10 M Rupiah home is still considered luxury homes in Indonesian standards. But hopefully affordable for foreign investors.