Congratulations to Joko Widodo who was yesterday
announced as the new president. During his campaign in the lead up to the
Indonesia presidential election 2014, Joko Widodo, widely known as Jokowi,
announced intentions to allow foreigners to purchase apartments. This is in an
attempt to increase tax revenues; and investor demand may begin to rush towards
low prices in the luxury market.
If plans are to go forward, foreign investors will
be able to purchase apartments worth at least 2.5billion rupiah in the Jakarta capital,
as well as other major cities and within Bali island. Foreigners are currently
barred from direct purchases of Indonesian property, which has led to illegal
transactions via proxies, therefore enabling them would allow a luxury tax to
be imposed on sales.
