Indonesia
PRG has been keen to develop real estate business in Indonesia and in this regard has been connecting through various social and other media with similar organizations and individuals in exploring hotel properties in and around Jakarta, Jogjakarta and Bali for its investors from overseas. PRG is also keen on wooing ethnic Chinese Indonesians into investing in Thailand and other projects across the Indian sub-continent. Indonesia’s property market is now slowing, despite robust economic growth, which in fact is a good time for PRG to try and move its investors into picking up decent real estate deals and also to take a look at the luxury market.PRG is fully aware however those foreigners can only hold land-use (hakpakai) deeds, and most developments hold right-to-build deeds (hakgunabagunan). It is not possible for someone to have a land-use deed for a sub-unit of a right-to-build deed. The length of these titles varies as well. Therein lie some of the difficulties and unclear ownership issues. So foreigners can effectively only lease, and not truly own an apartment for up to 70 years, but not free standing houses. Within this 70-year period, foreigners must also periodically renew their right to use. The initial hakpakai period is for 25 years, then renewed for an additional 25 years and finally 20 years.
