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Indonesia considers foreign investment changes

On 31 March Bloomberg announced that Indonesia will allow foreigners to buy property in the country and own bigger stakes in health-care companies as it completes a review of investment rules, the country’s investment coordination agency said.

Southeast Asia’s largest economy plans to deregulate its property industry by the end of the first half, allowing foreigners to buy homes and commercial real estate directly, Gita Wirjawan, chairman of the Investment Coordination Board of Indonesia, said in a forum in Singapore on 31 March. The move will “unleash value,” he said.

“The government is committed to continuously comb through policies to make it easier to invest in Indonesia,” Wirjawan said in an interview after the forum. “I am optimistic that once we can be seen to be taking steps in the right direction, we’ll be able to reach a 15 percent increase in foreign investment over last year’s US $14 billion,” he said.

“Property companies that sell apartments will benefit the most, especially those who are currently building,” said Natalia Sutanto, a property analyst at PT Bahana Securities.