Real estate in many countries around the world struggles to fight back after enormous losses in many years. The oversupply of housing units with very little market to work on is a significant factor that hampers the industry. This is also particularly in Asian countries like Indonesia. When planning to buy property, Jakarta is often the first place many people check. Foreign prospective buyers especially those from the West find it difficult to get the place they want as there is an existing foreign property ownership restriction. This automatically eliminates a huge chunk in the market which could be a big help to the country’s hampered real estate Industry.
Another noticeable trend is that the units sold in big cities are getting smaller in sizes. This also hinders parents from getting a property in Jakarta. One option that is available for them is renting. It is highly recommended that those people who wish to rent review Basic Agrarian Law (Law No.5 of 1960) which also covers the regulation on landlords and rentals. This could be very helpful especially for those who are moving from small towns and areas.
For those who are looking for or planning to buy property, Jakarta has become an option for employment reasons. Companies can also provide them the help. It is rather typical in Indonesia for companies to subsidies and help employees in finding their preferred location and unit. In cities like Jakarta, the process of subleasing is a common practice. There are certain standards in lease agreements that must be followed. For example, when it comes to handling maintenance and other minor issues such as repairs, the tenant is held liable for these. An additional 100 US dollars is normally required to be paid on top of the security deposit when renting a property in Jakarta. Another important factor to be considered when renting is the withholding fee. For long-term leases or those who which will span for more than 1 year, almost 10% of the total lease contract is required. Tenants are also allowed to negotiate if they find too costly.
In major cities, exclusive or high-end properties are mostly rented by foreigners who work in different companies. A common observed problem is that sometimes these expatriates tend to lease the units for a certain period during their work assignment. When there are abrupt changes, they typically leave even before their lease agreement expiration. Guidelines have to be reviewed accordingly.