TEMPO.CO, Jakarta – Crown International Holding Group chief executive Iwan Sunito said building properties in Indonesia is more difficult than in Australia due to land acquisition issues. “There are many disputes and unclear regulations,” he said on Monday.

According to Iwan, the complex land problems in Indonesia has caused investors to be reluctant in entering Indonesia’s property business. He added law manipulation had also exacerbated the problems, with land status contested despite having been confirmed by the court.

“There are also people who deliberately dispute land ownership just so that the owner is not free,” he said.

He continued that that sort of problems were absent in Australia, where legal processes were clear and building property and land ownership processing carried out transparently. He said the same went with licensing fees.

Even so, Iwan acknowledged that property business potential in Indonesia was still wide open. With Indonesia’s significant growth of middle-class, he said, property business could still be appealing to investors. Iwan, who has been successful in conducting property business in Australia, is cooperating with a national property company to build a 10-hectare apartment complex. “It is located an hour from Jakarta,” he said.

ALI HIDAYAT