By Michael S. Carl and Miftahul Khairi
Indonesia issued Government Regulation No. 103 of 2015 regarding the Ownership of Homes or Residences by Foreigners Residing in Indonesia (“GR 103/2015”) in late December 2015. GR 103/2015 entered into force on December 28, 2015. The Government made the new ruling public earlier this week. Changes There had been some speculation that the government, as part of the economic stimulus packages it has been introducing since last year, would make major changes to the rules on home ownership by foreigners, in order to stimulate the property market. Speculation included the possibility that foreigners domiciled abroad may be permitted to own homes/apartment units in Indonesia. However, that is not the case under GR 103/2015, which requires foreigners to have a legal stay permit to own a home/residence in Indonesia. Significantly, foreigners must sell their homes to a qualifying person within a year after relinquishing their legal stay permit. This is an important consideration for any foreigner looking to acquire a home in Indonesia as a long-term investment. Important points in the new regulation GR 103/2015 also introduces the following provisions that were not in the previous regulation:
GR 103/2015 provides that the grant, release or transfer of ownership of a home or residence by a foreigner will be further stipulated in regulations to be issued by the National Land Agency. This update is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user’s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK. |