Foreigner to be allowed to own luxurious apartments in Indonesia: minister

A coordinated meeting next week will draft new regulations that will allow foreigners to have luxurious apartments in Indonesia, a move aimed at boosting the country's property sector, a minister said here on Thursday.

Indonesia's Chief Economics Minister Sofyan Djalil said that the draft would set rules regarding size limits and tax on the purchase of the apartments.

"We will continue the drafting on a coordinated meeting next week. Hopefully the new regulations will take effect in two or three months," he said.

However, the minister stressed that the government still bans non-Indonesian citizens from owning landed properties as many violation have occurred.

"We will only allow the purchase of luxurious apartments by foreigners, but not landed houses," said Sofyan.

Sofyan said that the purchase of the luxurious apartments in Indonesia is expected to help spur economic growth in the country.

"Should retired persons from developed countries want to stay in a tropical country and purchase property here, and they stay here for 3 months during winter, it would create purchasing power and new jobs," said Sofyan.

Indonesia has cut down payment for purchase of houses and automotive, and exempted taxes on luxurious goods to help boost purchasing power as its economy has grown the slowest in six years during the first quarter of the year. Endi