With JSI Group’s exciting project, the luxurious Savyavasa residences, set to be completed in 2025, their COO Bram Van Hoof is here to give us a little sneak peek.
On July 16, 2024, Indonesia Expat had an insightful conversation with Bram Van Hoof, COO at the renowned Jakarta Setiabudi Internasional (JSI) Group. He is currently spearheading the development of Savyavasa, a luxurious apartment complex in South Jakarta’s vibrant Dharmawangsa neighbourhood. Bram shared his journey into the real estate industry, reasons why foreigners should confidently invest in Indonesian property, and what prospective buyers can anticipate from Savyavasa.
Hi Bram. Let’s get started by introducing yourself a bit. What can you tell us about yourself?
I was born and raised in Belgium and began my career as a real estate analyst in London in 2004. My professional journey has since taken me to Hong Kong, Singapore, and ultimately, Indonesia. About a decade ago, I moved to Jakarta and joined JSI Group, one of the most prominent real estate companies in the country.
Why did you decide to move to Indonesia and join JSI?
I decided to move to Indonesia for several compelling reasons. Like many expats, I was drawn by the appeal of Indonesia and its vast business potential. In our industry, the opportunity to help develop iconic properties is particularly enticing. JSI has a proven track record of creating landmark developments earned over more than 40 years. This is evident in projects like the Djakarta Theater and Setiabudi One, as well as our hospitality ventures such as the Grand Hyatt Bali and Hyatt Regency Yogyakarta.
Joining JSI was a unique opportunity to learn from their extensive experience and contribute to a new generation of iconic developments. Just in the past two years, we opened One Satrio, a new lifestyle destination in Jakarta’s CBD, and Andaz Bali, a 5-starred resort in Sanur which has received several high-profile accolades, including Travel & Leisure’s “#1 Resort in Asia” and “#3 Hotel in the World”.
And then, of course, there is Savyavasa. Together with our partner, Hong Kong’s Swire Properties, we have established a new benchmark in premium living. Located in the serene, leafy environment of Dharmawangsa, Savyavasa is just a stone’s throw away from the bustling Senopati and SCBD areas and close to all the conveniences South Jakarta offers, including an array of international schools.
At JSI, we bring our local expertise to the table, complemented by the global perspective of Swire Properties. Collaborating and learning from each other has been an invaluable experience. Ultimately, Savyavasa is a testament to our shared vision of integrating luxury living with sustainability and cutting-edge design. By the second quarter of next year, hopefully, we will have been able to hand over the apartments to prospective Savyavasa residents.
As we all know, 2024 is set to be a year of significant political and bureaucratic change in Indonesia. With that in mind, do you believe it will become easier or more challenging for foreigners to secure property ownership in this country, and why?
I believe 2024 is shaping up to be an exciting year for foreigners aspiring to own property in Indonesia. Earlier this year, the Indonesian government implemented significant regulatory changes regarding property ownership for foreigners, though many are still unaware of these updates. Traditionally, foreigners have secured property in Indonesia through leasehold agreements, particularly popular in Bali, or through a Foreign Owned Company, known as Penanaman Modal Asing (PMA). Another common method has been the ‘nominee practice’.
However, recent regulatory changes now allow foreigners to own property directly, subject to a minimum property value. The investment threshold varies by region and is currently set at IDR 3 billion in Jakarta and Bali for apartments. If a foreigner meets the minimum investment requirement, they can now own apartments under a Strata Certificate of Title, similar to the certificates issued to Indonesian citizens.
Looking at the property sector in Indonesia today, what are the most fundamental rules that, at the end of the day, foreigners in Indonesia should pay attention to when it comes to property ownership?
Most foreigners in Indonesia are primarily concerned with the security of their property ownership. They want to ensure they can actually own their property and maintain that ownership over time. Since the new regulations came into effect, we have been working with some of the most reputable notaries in the country and closely liaising with the Indonesian government to fully understand the current regulations.
It’s also worth noting that foreigners residing overseas, not just those living in Indonesia, can now secure property ownership. Additionally, it has become easier for foreigners to open a bank account in Indonesia, resolving many practical issues and making the process more navigable.
In your experience so far, what do foreigners often misunderstand about securing property ownership in Indonesia — and why?
I don’t believe it’s a ‘misunderstanding’; rather, navigating property ownership as a foreigner in Indonesia can sometimes feel complicated. As I mentioned earlier, there are various methods foreigners typically consider when purchasing property here, each with its drawbacks. This complexity has often deterred foreigners, who perceive the risks as outweighing the rewards.
However, recent regulatory changes by the government have eliminated many of these risks. Now, foreigners can own property in Indonesia, using it as either a private residence or an investment. Additionally, there is another significant advantage: unlike in countries such as Singapore, the Indonesian government does not charge extra taxes for property purchases by foreigners. Foreign buyers are subject to the same taxes as local buyers, making property investment in Indonesia even more attractive.
Some foreigners may wish to secure land ownership instead. Is that, perhaps, a completely different issue and, thus, an entirely separate conversation? If so, why?
Yes, I believe so. Although there have been new regulations in place concerning foreigners purchasing properties like apartments in Indonesia, regulations about foreigners purchasing land in Indonesia are altogether different. Ultimately, land ownership is a different issue, with its specific government law to comply with.
Catching up with new regulations can be overwhelming, especially for foreigners who have only recently been acquainted with the Indonesian culture, norms, and policies. What advice can you give them?
We understand that owning a property entails a huge commitment and that prospective buyers must have a lot of questions that need answering. At Savyavasa, we take the time to thoroughly discuss these matters with prospective apartment owners to ensure they understand the latest regulations. We have also taken significant steps to provide clear and comprehensive legal guidance, ensuring our clients are fully aware of all legal considerations. And I am pleased to share that we already have a number of foreigners who will join Savyavasa’s community, benefiting from the new foreign ownership regulations.
What is next for you, the JSI Group, and Savyavasa?
We are committed to carrying forward JSI’s pioneering and innovative spirit into the future. Savyavasa is definitely going to be an exciting, fresh addition to all the landmark edifices here in Jakarta, and we are working hard to ensure our residents can move into their new homes by the middle of next year. And we have of course a few new unique and exciting initiatives in the pipeline. I can’t share many details yet, but we may bring our experience in luxury living to Bali in the near future.
Savyavasa is a luxury residential development by JSI Group and Swire Properties, comprising three towers set amongst three hectares of lush landscape located in the upscale neighbourhood of Dharmawangsa, South Jakarta. Savyavasa seeks to redefine luxury housing and property in Indonesia by integrating Swire Properties’ world-class expertise in designing and developing residential properties, and JSI Group’s rich real estate experience in Indonesia.
Last but not least, how can our readers reach you, the JSI Group, and Savyavasa?
For more information about Savyavasa, visit our website at www.savyavasa.com and follow us on Instagram at @savyavasa. Or better still, come by for a coffee at our show gallery in Dharmawangsa!
