Weak Protection for Buyers of Foreign Property
Wednesday, 29 November, 2006 | 15:52 WIB

Tempo Interactive, Jakarta: Association of Indonesia Real Estate Broker has said he considers that the protection for Indonesian consumers as regards purchase of foreign property is still weak.

In addition, according to Chairman of Association of Indonesia Real Estate Broker Tirta Setiawan, selection of every foreign property in Indonesia is required.

“So, they cannot easily sell their products. This is for our consumers' sake,” he told Tempo.

He has affirmed that this is required in order to guarantee the clarity of location, price, the developer's credibility, legal status, rules and regulations, especially after the property is passed from one owner to another.

“So that property purchase is really guaranteed,” said Tirta.

According to Tirta, the selection can be done by the government through the related association.

The said step has been done by the Singaporean government firmly as regards parties that offer properties to the country.

Tirta went on to say that the recent offer of foreign property to Indonesia cannot be avoided.

“Now, everything must be out in the open,” he said.

Quoting data from Singapore’s Real Estate Information System, Anton Sitorus, Head of Research of Jones Lang Lasalle in Indonesia, explained that total sales of apartmenst in Singapore to foreign citizens between 2003 and 2005 reached a total of 7,400 apartments, of which 1,930 were purchased by Indonesians.

General Chairman of Indonesia Real Estate Lukman Purnomosidhi said that the growing enthusiasm in buying foreign property asset should be equaled with an increase of foreign investment in the property sector in Indonesia.

“We cannot prevent our people from buying property abroad. I cannot believe we are only the market,” he said.

Therefore, he has called upon the government to grant privileges soon: for instance, renewal of right of use of property asset or facilities as regards residence permits.

Harun Mahbub
Jawawa.net: Indonesian Business and Investment News Aggregator