TEMPO.CO, Jakarta - Ali Tranghanda, Executive Director of Indonesia Property Watch said that government’s plan to allow land ownership by foreigners must be evaluated. "If [the government] is not careful, property ownership by foreigners could boost land prices," Ali told Tempo Wednesday, July 8, 2015.
According to Ali, the minimum requirement of Rp 5 billion property value that can be owned by foreigners will increase the number of upper class areas. Ali added that if developers prefer to tap in to the more lucrative foreign market, it is possible that land prices will be affected. Consequently, Ali explained, lower and middle class people will have difficulty to buy houses.
On the other hand, Eddy Hussy, Chairman of the Central Board of Real Estate Indonesia (REI) supported the plan to allow foreigners to have land ownership. "This could boost the property market," Eddy said.
Responding to the concern that foreign ownership could increase land prices, Eddy said that the issue can be addressed by implementing a zoning system. "For example, foreign ownership is allowed only in Jakarta and Bali," Eddy said.
PINGIT ARIA | ADITYA BUDIMAN