REPUBLIKA.CO.ID, JAKARTA -- Foreigners will be allowed to own only luxury apartments, Finance Minister Bambang Brodjojegoro said here on Wednesday.

"If a regulation is issued later, foreigners will be allowed to own only luxury apartments," he said after attending the signing of a commitment against gratification.

He added that the government would first have to prepare a regulation permitting foreigners to purchase property in Indonesia.

Brodjojegoro estimated that at present, a luxury apartment costs some Rp5 billion. "The category starts from the price range of Rp5 billion," he pointed out.

Regarding tax on property owned by foreigners, the minister stated that it would be regulated later.

"Tax on the sale of luxury goods does not apply to foreigners alone but on all luxury apartments," Brodjojegoro explained.

President Joko Widodo decided to allow foreigners to purchase property in Indonesia and plans to revise Government Regulation Number 41 of 1996 on home ownership by foreigners living in the country.

"President Jokowi agreed with the proposal of the executive board of Real Estate Indonesia (REI) by permitting foreign ownership of property," Head of the President's Communications Team Teten Masduki affirmed after accompanying the president in a meeting with the Central Executive Board of REI at Merdeka Palace on Tuesday.

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