Spotlight on Indonesia: How can foreign investors access real estate opportunities in accordance with Indonesian law?
For a year now, the real estate market has been growing in Indonesia. Many publicly-listed real estate companies have experienced high growth, and 2012 may be viewed as a seller’s market. This is because the low interest rate environment allowed many people and companies to purchase housing or apartments from the primary or secondary market. Conditions in 2013 are generally still the same as in the previous year, and real estate construction in prominent locations in and out of CBD areas, especially in Jakarta, still continues. Opportunities are evident, particularly for office buildings, given Jakarta needs more office space due to economic development in recent years.
Two important laws were promulgated in 2011 and revoked the former laws in their area: One was on condominiums, and the other was on housing. There are some material changes in condominium law that have affected real estate developers. Many developers viewed the changes as not workable, and the situation was