Indonesia has introduced new rules for the purchase of real estate by foreigners

Foreign citizens can now purchase homes in Indonesia with just a passport. Residence permits and other visas are no longer required for this. Previously, this was only possible with a KITAS (limited stay visa) or KITAP (permanent stay permit). Now, the situation is reversed - after a foreigner purchases or acquires real estate in Indonesia, they will obtain a residence permit (KITAS or KITAP).
However, there is a minimum price for such real estate depending on the region of the country.
Minimum prices for houses with land that foreigners can buy:
1. DKI Jakarta: 5 billion IDR
2. Banten: 5 billion IDR
3. West Java: 5 billion IDR
4. Central Java: 5 billion IDR
5. East Java: 5 billion IDR
6. Special Region of Yogyakarta: 5 billion IDR
7. Bali: 5 billion IDR
8. West Nusa Tenggara: 3 billion IDR
9. North Sumatra: 2 billion IDR
10. East Kalimantan: 2 billion IDR
11. South Sulawesi: 2 billion IDR
12. Riau Archipelago: 2 billion IDR
13. Other regions/provinces: 1 billion IDR
Minimum price for apartments that foreigners can buy:
1. DKI Jakarta: 3 billion IDR
2. Banten: 2 billion IDR
3. West Java: 2 billion IDR
4. Central Java: 2 billion IDR
5. East Java: 2 billion IDR
6. Bali: 2 billion IDR
7. Special Region of Yogyakarta: 2 billion IDR
8. Other regions/provinces: 1 billion IDR
There is a restriction on residential property for foreigners of maximum 2000 square meters, but if foreign buyers can positively influence the economy and society of Indonesia, the area of their land ownership may be increased.
In Jakarta, at the forum on the socialization of property ownership rules for foreigners, the Secretary-General of the National Land Agency, Suyus Windayana, as well as Sri Mulyani, the Minister of Finance of Indonesia, and the Chairman of the Indonesian Employers Association, Shinta Kamdani, spoke.
They discussed that Indonesia is currently lagging behind in implementing housing for foreigners and is losing out to neighboring countries such as Singapore, Malaysia, and Thailand. They reported that recommendations regarding foreign property ownership have been finalized and published at the forum. They also assessed the government's readiness to listen to the aspirations of entrepreneurs.
If you are interested in ready-made real estate properties or land plots, you can contact Sky Realty agency. On their website, you will find a large list of beautiful villas with photos and detailed descriptions in various areas of the island.
General provisions regarding property ownership:
Currently, foreigners have the opportunity to legally secure land through long-term leases. This can be done in the name of their company, using Hak Guna Bangunan - the right to build, or registered to an individual (Hak Pakai - the right to use).
According to the law, foreigners can have certain rights to land and buildings, namely:
- Hak Pakai Atas Tanah: rights to land use for a certain period of time,
- Hak sewa atas tanah dan bangunan: rights to lease land and buildings,
- Hak milik: ownership rights to apartments in multi-unit buildings ("Sarusun") and residential buildings on separate plots.
In other words, this is the purchase of ownership rights or rights to use real estate for a certain number of years, and the buyer has all rights of ownership over this property, including selling, gifting, and passing on inheritance rights.
The government decree states that a foreigner can purchase property in Indonesia on usage rights for an initial period of 30 years. After this period, they can extend the ownership right twice: once for another 30 years, and then for another 20 years (therefore, the total duration of foreign ownership can reach 80 years).
Legal sources:
Foreign property ownership rights are regulated by Law No. 5 of 1960 concerning Basic Principles of Agrarian Principles ("UUPA"), Law No. 11 of 2020 concerning Job Creation and PP 18/2021.
Article 49 (2) of PP 18/2021 provides that foreigners residing in Indonesia may have the right to use land for a certain period of time.
Minister of Agriculture and Spatial Planning/National Land Agency Head Decree No. 1241/SK-HK.02/IX/2022 on the prices for the acquisition of housing/residential property for foreigners.
Government Regulation No. 18 of 2021 concerning management rights, land rights, apartments, and land registration, Article 69 on immigration documents for property ownership.
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