Foreign investments in real-estate

Eddy Leks, CEO & Managing Director of Leks Co Lawyers talks about investments in Indonesia and doing business.

What are your expectations for the coming years in terms of property? Do you think that Indonesia is calling enough attention to itself to get more investors?

I believe so. Since Joko Widodo was elected many laws have been changed and amendments are being added very quickly. Last week the Ministry of Home Affairs cancelled many local regulations of various local governments in Indonesia that are considered to be hindering the investment process in Indonesia. I think that as a legal practitioner I really have to look at the news and the government actions because on a daily basis there is a chance that they can issue a new regulation or amendment to an old regulation to encourage local and foreign investment. They have also managed to restructure the administration process in the government with online application. There was a presidential instruction to all the local governments that real estate licences have to be done online by 2017. The government has given one year to restructure their system in order to prepare the online application process.

The government is trying to speed up all the sectors and they are trying to look friendly to investors. For example, our firm was invited to a meeting with the ministry to help them with a survey so that they can upgrade their rating. It has never happened before under other presidents. It’s interesting because now we can see that the government wants to be seen as investment friendly country.

From your perspective as a lawyer in Jakarta, do you see Indonesia easier to do business?

Yes. Much has already changed. Now it is very quick to set up a company. Within 30 minutes you can set up a new company. Everything is online so all you have to do is have the company’s name and pay the establishment fees. Then the notary will put it online and then not long after that the legalization can be issued.