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Heru Kuswanto
Woro Winandi


The residential property sector in Indonesia remains attractive even though there are several factors that have hampered growth over the past two years. The ownership for singles related to property refers to Government Regulation Number 40 of 1996 concerning Building Use Rights, Business Use and Use Rights to Land; Government Regulation Number 41 of 1996 concerning Housing or Residential Houses by Foreigners Domiciled in Indonesia; Law Number 25 of 2007 concerning Investment. Secondly, foreigners can buy or own a house in Indonesia above usufructuary rights, but the maximum time period given is 10 years for land under 2000 square meters. Moreover, in line with the global trend, Indonesia has experienced a process of urbanization (rapid). At present, more than 50% of Indonesia's population lives in urban areas. Several years ago, the United Nations (UN) stated that in 2050 two-thirds of Indonesia's population is predicted to live in urban areas. This means that there will be more houses, apartments and condominiums to be built in Indonesian urban areas to meet growing demand (even though Indonesia has now been burdened by a backlog of 13.5 million units and hence President Joko Widodo launched the "One Million Houses Program") in April 2015). This situation also implies that due to lack of land availability in urban areas, prices tend to rise rapidly, while developers need to increasingly focus on vertical property development such as apartments and condominiums

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