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AREBI Calls For Individual Property Agents and Foreign Brokers to be Regulated

The Indonesian Real Estate Brokers Association (AREBI) has asked the government to play a role in controlling property transactions through regulations as many property agents work individually and many foreign brokers making transactions do so without paying taxes, according to reporting from Kontan.

Hartono Sartono, General Chairperson of the AREBI DPP, said that every broker transaction that has been registered as an AREBI member is subject to tax. Currently, there are only 1,000 registered AREBI property brokers, which is a tiny fraction of the estimated 30,000 property agents conducting property buying and selling transactions. 

The number of foreign brokers using Indonesian names is also very large, especially in the areas of Bali, Lombok and Labuhan Bajo, said Hartono, who added foreign brokers also illegally conduct exhibitions at star hotels usually selling property products built by foreign companies and selling them to foreign citizens as well, so they are not subject to taxes.

AREBI deeply regrets that the neglect of individual property selling agents and foreign brokers is very large meaning the potential for lost taxes is enormous at the same time as the government is actively seeking tax revenues, report Kontan.

“We ask for the role of the government in controlling these individual agents and foreign brokers through regulations because the government will benefit from it. Transactions must be made transparent. In addition, if there are regulations, the government will have clear property transaction data every year that can become a benchmark in implementing other policies,” said Hartono, Tuesday (17/7).

Currently there are regulations that support the implementation of property transactions through the Ministry of Trade, however, this rule is considered insufficient because it only regulates brokerage companies and does not regulate individual property agents, said Hartono.

Under existing regulations, each property brokerage office is required to have at least two certified experts to be able to obtain a business license as a property broker, say Kontan.

AREBI says this is not enough. All property agents should have certification to carry out property buying and selling transactions like in ASEAN countries. “We ask the government to also regulate this.” Hartono said.

Currently, the total number of AREBI members who have obtained a Property Trade Intermediary Company Business License (SIU-P4) amounts to only 400 companies, which is why the association has set a target that by the end of the year all of its members must pass certification.

Kontan say the Executive Director of the Professional Certification Institute (LSP) for Property Brokers, Yamanah AC explained, that certification is carried out for property brokers, referring to the Ministry of Manpower’s programme that all workers in Indonesia must have competency according to predetermined national work standards.

“Currently there are more than 1,000 LSPs in Indonesia, not just property brokers, but all professions such as doctors, accountants, lawyers and other professions,” said Yamanah.

Source: Kontan

Photo by Thirdman on Pexels

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