As concrete steps to reform the Indonesian economy amid the current global downturn manifest themselves through President Jokowi’s various Economic Policy Packages, three main objectives have been set: specifically the improvement Indonesia’s industrial competitiveness, the acceleration of the progress of projects which are considered to be national strategic importance, and encouraging investment within the property sector.[1]This latter objective has resulted in the issuance of Government Regulation No. 103 of 2015 on the Ownership of Residential Property by Foreign Citizens Domiciled in Indonesia (“2015 Regulation”).
 
The 2015 Regulation mandates that foreigners are now able to purchase property in Indonesia, provided that they satisfy several requirements. The new regulation also redefines the legal framework for foreign nationals living in Indonesia who are looking to acquire property for residential purposes, which was previously regulated under the now obsolete Government Regulation No. 41 of 1996 on the Ownership of Residential Property by Foreign Citizens Domiciled in Indonesia(“1996 Regulation”).
 
This week’s edition of Indonesian Law Digest (“ILD”) will seek to analyze and discuss issues relating to property ownership by foreigner citizens, as set out under the 2015 Regulation. This analysis will encompass the following topics: