Buying an apartment in Indonesia may soon become easier. The Indonesian government is working towards changing the law in favor of foreign investors in a bid to grow the economy. The new regulations may be in place before the end of the year. Previously, the Agrarian law instated in 1960 stipulated that foreigners are not allowed to own properties in Indonesia.
The new emergency law, named perppu, will take effect next month and foreigners will then be able to purchase apartment units though landed properties are still restricted. Property agents have already reported more enquiries for properties in Jakarta, mostly for properties in the suburbs priced around 2 billion rupiahs. Apartment prices in Indonesia are considerably lower than that in Singapore and so is the cost of living, thus this new law may indeed be the impetus behind a economic change in Indonesia.
Although job creation and economy growth are the motivation behind this move, some analysts say that this may change the landscape of property ownership for Indonesian citizens, as property prices may rise to unaffordable levels. The new law will no doubt come with caveats, for example price and property type restrictions, but the average Indonesian may still see the median prices rise about 20%.