JAKARTA - The issue regarding apartment ownership by foreign citizens (WNA) re-emerged after the hammer hit the Omnibus Law on October 5, 2020. This is related to article 144 (1) in the Work Copyright Law which states that ownership rights to flats (sarusun) can be given to foreign nationals who have permits in accordance with the provisions of laws and regulations.
CEO of Indonesia Property Watch (IPW) Ali Tranghanda said that the mention of property rights here is unclear because according to Permen ATR / Head of BPN No. 29 of 2016, Hak Milik Sarusun is the ownership by Indonesian citizens of sarusun on land that is owned by property, right to build, or right to use over state land, as well as rights to build or use rights over land with management rights.
"Meanwhile, for foreigners, according to the regulation, can only be in the form of use rights over apartment units (Hak Pakai Sarusun), namely Sarusun Property Rights owned or owned by foreigners. So with the mention of ownership rights to sarusun in article 144 (1) In the Job Creation Law, there needs to be an affirmation as to what is meant, "Ali said in his statement, Sunday 3 October.
Meanwhile, based on Government Regulation (PP) Number 103 of 2015, apartment ownership for foreigners is possible with usage rights. Even in the Basic Agrarian Law no. 5 in 1960, foreigners were able to own property with usufruct rights.
In article 4 of PP. 103/2015, it is stated that the occupancy that can be owned by foreigners is a Single House on Hak Pakai land or Hak Pakai over Hak Milik. Foreigners can also have a Flat Unit which is built on the Hak Pakai plot of land.
However, the PP does not mention 'Hak Milik Sarusun' and only says that they can have 'sarusun' above the Right to Use. Is it the form of ownership rights to sarusun or Right to Use over sarusun.
"As we all know that currently almost all apartments for sale have Building Use Rights (HGB) and not Use Rights. If foreigners can own use rights, how about apartment projects that currently have HGBs, can they be immediately granted rights. Owning a syringe goes to foreigners because it would violate ownership rules, "said Ali.
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Some of these things, said Ali, must be explained in detail by the government. Because if it is not done, according to him, it will only create confusion in the market.
Some of these things must be emphasized through this derivative of the Omnibus Law because it is not yet clear about the ownership rules. Since the PP issued in 2015, it has been seen that foreigners have not been interested in buying apartments in Indonesia. It could be that the ownership process is still complicated, so they are not too enthusiastic.
"What is stated in the Omnibus Law should not make the market even more confused. The government must be able to explain in detail what the ownership rights to the system are and how the process is. Because this is an old issue that has not been resolved, many policies and legal umbrella not ready yet, "said Ali.
According to Ali, is this a breath of fresh air for the apartment market? It is possible for many parties to consider the ownership of this foreigner to be a breath of fresh air. However, this may not necessarily attract foreign interest to buy apartments, let alone boost apartment sales.
"So don't reverse the logic of the market. Even with good regulations, it is not certain that foreigners will be interested in buying apartments in Indonesia if they are not accompanied by legal certainty, political economic stability and a good investment climate," said Ali.
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