Here is the law:
Here is an article from Indonesian lawyers at Baker McKenzie (international law firm). You may need to open it incognito to pass the paywall.
I have seen a lot posted recently regarding changes of laws for visas and posted the changes of law for property ownership. Many on the forum seem to still be under the impression that foreigners don't have hak milik rights in Indonesia. The law change last year gave right of ownership over stacked units (Hak Milik Atas Satuan Rumah Susun, HMSRS). As of last year, a foreigner with a ITAP can buy/sell apartments without any experation dates involved in a hak pakai title. I am not sure I would trust construction/value of aparments longer than the renewable hak pakai time period of 70 years. It is still nice that there is not detriment to the title that it is easier to sell and get a mortgage.
Many articles compare this to opening of hak pakai rights for foreigners in 2015. This law revokes that law. There is a caveat....
This seems like a large enough loophole that it will encompass most apartments.
There is some dissent. Here is a law review article from Universitas Udayana claiming the law is unconstitutional and contradicts the Agrarian Law against foreign ownership.
What are everyone's thoughts?
Will someone have standing to overturn the law?
Does the loophole open up enough apartment ownerships to foreigners?
My personal review of the Indonesian property market, with time-value of money and with risk and return factored in, it is more expensive to own than to rent in Indonesia. Does anyone find the property market more attractive with hak milik title?
Here is an article from Indonesian lawyers at Baker McKenzie (international law firm). You may need to open it incognito to pass the paywall.
Indonesia: Government Finally Issued Implementing Regulations on Rights over Land, Underground Space and Abandoned Land
President Joko Widodo enacted Law No. 11 of 2020 on Job Creation ("Omnibus Law") on 2 November 2020, which took effect on the same day…
www.lexology.com
I have seen a lot posted recently regarding changes of laws for visas and posted the changes of law for property ownership. Many on the forum seem to still be under the impression that foreigners don't have hak milik rights in Indonesia. The law change last year gave right of ownership over stacked units (Hak Milik Atas Satuan Rumah Susun, HMSRS). As of last year, a foreigner with a ITAP can buy/sell apartments without any experation dates involved in a hak pakai title. I am not sure I would trust construction/value of aparments longer than the renewable hak pakai time period of 70 years. It is still nice that there is not detriment to the title that it is easier to sell and get a mortgage.
Many articles compare this to opening of hak pakai rights for foreigners in 2015. This law revokes that law. There is a caveat....
However, foreigners may only acquire HMSRS title to apartments in special economic, free trade or free port, industrial, or other economic zones. ”Other economic zone” is defined as an urban or suburban zone, tourism zone, or a zone that is suitable for vertical housing development, and which has a positive economic impact for the public.
New ‘Omnibus Law’ Regulation Makes Significant Changes to Indonesian Land Law Regime | ABNR - Counsellors at Law
February 2021 saw the issuance of a raft of new Government Regulations to give effect to the reformist Job Creation Law (known colloquially as the Omnibus Law),[1] which entered into force on 2 November 2020. In this ABNR legal update, we discuss some of the notable items under Government Regula
www.abnrlaw.com
This seems like a large enough loophole that it will encompass most apartments.
There is some dissent. Here is a law review article from Universitas Udayana claiming the law is unconstitutional and contradicts the Agrarian Law against foreign ownership.
What are everyone's thoughts?
Will someone have standing to overturn the law?
Does the loophole open up enough apartment ownerships to foreigners?
My personal review of the Indonesian property market, with time-value of money and with risk and return factored in, it is more expensive to own than to rent in Indonesia. Does anyone find the property market more attractive with hak milik title?