Ragu Bank Financing Property For Foreign Why?

Housing-Estate.com, Jakarta – The government through the Ministry of Agricultural and Spatial Planning (ATR) / National Land Agency (BPN) has issued Regulation No. 29 Year 2016 concerning the procedures for granting, release, …

Housing-Estate.com, Jakarta – The government through the Ministry of Agricultural and Spatial Planning (ATR) / National Land Agency (BPN) has issued Regulation No. 29 Year 2016 concerning the procedures for granting, release, or transfer of rights to ownership of a residential house or dwelling by foreigners domiciled in Indonesia. This rule is an assertion that foreigners can buy property in Indonesia with the status of rights of use for a period of up to 80 years, could be mortgaged and inherited.

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With this rule the government wants to support the economic sector, especially in the property sector that foreigners are allowed to buy property here national property sector could be back stretch. Only from the banking side there are still doubts for financing maaupun accept foreigners purchase property as collateral.

According to the Director of the Department of macroprudential Bank Indonesia (BI) Yti Kurniati, in principle, BI and Financial Services Authority (FSA) did not make rules that hamper the funding of foreign property. But on the other hand, he could also understand the reluctance of banks to channel financing.

“The presence of foreigners who buy here is to increase fiscal revenue in addition to making the transaction also more clearly not a trick like this during a lot going on. But there is still reluctance on the part of banks regarding the status of the right to a stranger for doubt later switchover process if there is an auction of collateral property owned by foreigners, “he said to housing-estate.com in Jakarta, Monday (21/11).

Banks, light Yati, an institution or business that applies very strict control. Banks need guarantees later how the transfer process a waiver if the foreigner is wan achievement against property. This binds related banking prudential system applied by the Bank and the FSA.

Although already declared status equal rights to use the rights to build (HGB), direct banking thinking how these properties later if the default. On the other hand the existing rules also do not include technical matters such as the details of the implementing rules of each grain transactions related to banking.

Yati also suggested, there should be control of the government for a case like this stranger default in repayments. When a foreigner wants to sell the property to the local people, feared to be less confident because of the status of rights that could make their property values ​​fall.

“On the principle of supporting the banking side allowing for foreigners buying property here, but the technical processes should be guaranteed by the government. This is to make business transactions also can be more smoothly and no guarantee of legal basis, “he concluded.

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