Samator Land offers foreigners a chance to invest in Indonesia
By Feily Sofian
/ The Edge Property |
One developer will be marketing an Indonesian property to Singapore investors. Samator Land is rolling out Skysuites SOHO, a freehold strata development in Surabaya, which features small office home office concept. Surabaya is the provincial capital of East Java and the second largest city in Indonesia.
Property ownership by foreigners is still restricted in Indonesia. However, there are schemes that allow non-Indonesians to purchase local properties. One of them is through PT Penanaman Modal Asing (PMA), the local term for foreign investment company.
Under PT PMA, foreigners can establish an investment property company to buy local properties. PT PMA appears to be the most attractive option for foreign buyers at the moment as it affords them the same property rights as local citizens, such as holding a freehold title.
We understand that the price paid for a Skysuites SOHO unit would be adequate to form the paid-up capital required by the Indonesian government to set up PT PMA. For convenience, foreign buyers could appoint a local notary to help establish the company. This involves a one-time fee of IDR 35 million (SGD 3,570) and an annual fee of IDR 18 million (SGD 1,836) for filing company reports to the authority on behalf of the owner.
Samator Land is the real estate arm of Samator Group, a leading gas company in Indonesia which was founded in 1975. The Group’s first property venture was Graha Pangeran, a high-rise office building in Surabaya which was a nominee for the ASEAN Energy Award in 2002. In 2013, the Group sold the building to its biggest tenant, Bank Negara Indonesia.
A mixed-use development
Skysuites SOHO is a 168-unit tower within The Samator Business Park, which also comprises an 18-storey office tower that will be available for lease only and a hotel. The hotel will be operated by AccorHotels under its Novotel brand.
The SOHO units will have two levels - a business space on the lower floor and a living area on the upper floor. Each level comes with its own lift lobby.
While the office tower would house large multinational and local corporations, the SOHO units are ideal for start-ups. Together, they would form a synergy, says Imelda Harsono, director of Samator Group. Her company would occupy five floors of the office towers. Another major tenant will be Bank Mandiri.
While the office tower would house large multinational and local corporations, the SOHO units are ideal for start-ups, says Harsono
Photo: Samuel Isaac Chua/ The Edge Singapore
Skysuites SOHO and the hotel are expected to be completed this year and the office tower in 2017. There will also be a few café on the ground floor that serve as hangout and informal meeting spots.
Harsono, the eldest daughter of Samator Group President and CEO Arief Harsono, was personally involved in the design and material selection for Skysuites SOHO as well as the office component of the business park while her brother helmed the hotel development.
Units at Skysuites SOHO will start from 110 sq m (1,184 sq ft) and priced from SGD 300,000 onwards, including discounts and taxes applicable for acquiring the property. Buyers can opt for a 13-month instalment plan offered by the developer. Samator Land has appointed RE/MAX Singapore as the marketing agent for Skysuites SOHO.
According to Colliers International Indonesia, asking rents for offices in East Surabaya where Skysuites SOHO is located, average IDR 230,000 (SGD 23) per sq m per month. In Indonesia, tenants typically sign a one- or two-year lease and pay the rent in a lump sum. The monthly service charge can be passed on to tenants.
Other expenses that buyers should take note of include income tax at 10% of rental revenue, property tax at 0.2% of the unit’s assessed value and agent’s fees for securing and managing the tenant, typically at 5% of the rental revenue. Samator Land will be holding an investment seminar for Skysuites SOHO on August 27 at Mandarin Orchard Singapore.
Several macro policies could have positive impacts on Indonesia’s property market. The recent tax amnesty programme and further relaxation of foreign ownership in property and businesses are widely expected to boost property prices in the country.
Units at Skysuites SOHO will start from 110 sq m (1,184 sq ft)
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