A recent report has revealed that Indonesia is the costliest country in terms of property registration compared to other Asia-Pacific countries. Property registration fee in Indonesia is worth 11 percent of the property value.
The report further said that Indonesia applies high-cost property registration despite the fact that it has become one of the indicators of doing business worldwide.
“Indonesia applies high cost property registration, which is the highest in Asia and the Pacific region, and higher than the global average,” said Director of Global Indicators and Analysis Department, World Bank Group, Augusto Lopez-Claros, today, Jan 31.
He said Indonesia's neighboring countries such as Malaysia, Vietnam, Thailand, and Singapura, only set 0.6 – 6.3 % of property value for property ownership transfer fee. Meanwhile, the average registration fee worldwide is 5.7 % of property value.
“Jakarta has become the city with the lowest fee at 10.8% and Batam has become the most expensive fee at 13.3%,” he said.
In addition to the fee, property registration in Indonesia takes longer. Property registration in Indonesia must go through 6 procedures and takes 33 days.
Meanwhile, the average property registration in East Asia and Pacific regions only has to go through 5 procedures. However, the registration takes up to 81 days and costs only 4.1 % of the property value.
Lopez said that reducing the percentage of property registration fee will not affect government’s income. For example, the Maharashtra State in India is enjoying a rise in government income after the state imposes lower fee. This was made possible because of the rise in the number of applicants.