Can Foreigners Get a Mortgage in Indonesia?
r123-share-title

Terakhir diperbarui 12 Agustus 2024 · 6 min read · by Imam

kpr untuk wna Great news for expats! Indonesia has opened up property ownership to foreigners.

This means that not only Indonesian citizens, but also foreign residents can now apply for home ownership loans or mortgages (Kredit Pemilikan Rumah or KPR).

The Indonesian government has authorized foreigners to buy property in the country.

This is outlined in ATR/BPN Ministerial Regulation (Permen) No. 18 of 2021, which details the procedures for managing land rights.

This regulation is based on Law No. 11 of 2020, known as the Job Creation Law.

Under these rules, foreigners can own landed houses with right-of-use status on state land, freehold land, or Management Rights (Hak Pengelolaan Lahan or HPL).

They can also own flats or apartments on land with Building Use Rights (Hak Guna Bangunan or HGB).

However, it’s important to note that foreigners cannot own property with a Certificate of Ownership (Sertifikat Hak Milik or SHM), which is the highest form of property ownership reserved for Indonesian citizens.

Banks Offering Mortgages to Expatriates in Indonesia

ketentuan kpr untuk wna As mentioned earlier, expatriates can apply to purchase a house or flat/apartment using a mortgage scheme.

However, there are specific terms and conditions for foreigners applying for a mortgage, and not all banks in Indonesia offer these facilities to non-residents.

Here’s a rundown of banks that provide mortgages for foreigners:

1. Permata Syariah Bank

Permata Syariah Bank offers mortgages to foreigners with the following requirements:

Must have been employed and residing in Indonesia for at least 2 years, or have been running a business in Indonesia for at least 4 years.
Net monthly salary must be at least IDR 25 million (not including joint income).
The minimum property price is IDR 2 billion.
The loan amount must be at least IDR 1 billion.
The property must have SHGB status (Building Use Rights). If it has SHM status (Freehold Title), it needs to be downgraded first.
Maximum Loan-to-Value (LTV) ratio is 60%.
The property must be ready for occupancy.

2. Commonwealth Bank

Commonwealth Bank, an Australian bank, provides mortgage facilities for foreigners with these conditions:

Minimum age is 21 years, and maximum age is 60 years when the loan term ends.
Must have a residence in the city where the Commonwealth Bank branch is located (applies to residence, workplace, and collateral area).
Minimum of 2 years of work experience.
Property must have SHGB status (Building Use Rights).

3. J-Trust Bank

J-Trust Bank, a Japanese bank, offers competitive interest rates and loan terms up to 30 years. Requirements include:

Foreigners must be domiciled in Indonesia.
Minimum age is 21 years at the time of application, and maximum age at loan maturity is 55 years for employees (or retirement age) and 65 years for entrepreneurs and professionals.
Must have a stable job and income.
For employees, a minimum of 2 years of service is required, including previous employment. For professionals and entrepreneurs, a minimum of 3 years of experience in the same field is necessary.
If you’re interested, make sure to check with each bank for their specific terms and to confirm that you meet all their criteria.

Mortgage Requirements for Foreign Residents in Indonesia

jangka waktu kepemilikan

1. Valid Residency

To apply for a mortgage in Indonesia, you must hold a valid KITAS (Limited Stay Permit).

This is an essential document issued by the Ministry of Law and Human Rights that proves your legal residency in the country.

2. Employment or Business Status

Different banks have varying requirements for foreign mortgage applicants.

Employment: Some banks, like Commonwealth Bank, require you to be a private sector employee with a minimum of two years of employment in Indonesia.
Self-Employed: Other banks, such as Permata Bank, may consider self-employed individuals. However, you might need to demonstrate a successful business track record of at least four years.

It’s important to check the specific requirements of each bank you’re considering.

3. Loan Term

The length of your mortgage (loan tenor) will typically be shorter than the duration of your work contract or KITAS. This is a standard practice for foreign mortgage borrowers.

What Properties Can Foreigners Own in Indonesia?

1. Property Type

Expatriates can own certain types of properties in Indonesia, with specific limitations.

Houses

Luxury Homes: Must meet specific luxury home criteria.
Land Ownership: Limited to one plot per person or family, with a maximum size of 2,000 square meters.

Apartments

Commercial Areas: Foreign ownership is allowed for apartments in commercial category.

2. Property Price Terms

jenis properti In addition to the property type restrictions, the Indonesian government has imposed price limits for foreign homebuyers, based on the region.

Minimum Price for Foreign-Owned Houses:

DKI Jakarta: IDR 10 billion
Banten: IDR 5 billion
West Java: IDR 5 billion
Central Java: IDR 3 billion
Yogyakarta: IDR 5 billion
East Java: IDR 5 billion
Bali: IDR 5 billion
West Nusa Tenggara: IDR 3 billion
North Sumatra: IDR 3 billion
East Kalimantan: IDR 2 billion
South Sulawesi: IDR 2 billion
Other regions or provinces: IDR 1 billion

Minimum Price for Foreign-Owned Apartments:

DKI Jakarta: IDR 3 billion
Banten: IDR 2 billion
West Java: IDR 1 billion
Central Java: IDR 1 billion
Yogyakarta: IDR 1 billion
East Java: IDR 1.5 billion
Bali: IDR 2 billion
West Nusa Tenggara: IDR 1 billion
North Sumatra: IDR 1 billion
East Kalimantan: IDR 1 billion
South Sulawesi: IDR 1 billion
Other regions or provinces: IDR 750 million.

Note: These prices are subject to change. Always check the latest regulations for the most accurate information.

3. Ownership Period

Since foreigners are not allowed to buy freehold property in Indonesia, there are specific rules for how long they can own houses or flats/apartments.

According to PP No. 103 of 2015, which governs the ownership of residential houses by foreigners living in Indonesia:

Foreigners can own a single house on land with use rights for up to 30 years. This period can be extended for another 20 years.
After the extension period, the use rights can be renewed for an additional 30 years.
For single houses on land with use rights, the total ownership period cannot exceed 30 years. This can be extended for up to 20 years based on an agreement with the land rights holder, and can then be renewed for another 30 years.

These are key points regarding KPR applications for foreigners. If you have any questions about property, feel free to ask Teras123!

Tahapan Selanjutnya

Banks Offering Mortgages to Expatriates in Indonesia

1. Permata Syariah Bank

2. Commonwealth Bank

3. J-Trust Bank

Mortgage Requirements for Foreign Residents in Indonesia

1. Valid Residency

2. Employment or Business Status

3. Loan Term

What Properties Can Foreigners Own in Indonesia?

1. Property Type

Houses

Apartments

2. Property Price Terms

3. Ownership Period

Tahapan Selanjutnya

Buying a Home in Indonesia: A Guide for Expatriates

Property Ownership Laws for Expatriates in Indonesia

Can Foreigners Get a Mortgage in Indonesia?

8 Best Places to Live in Bali

8 Top Picks for Luxury Homes in Bali's Prime Locations

11 Top Comfortable and Elite Neighborhoods to Live in Jakarta

9 New Apartments in Jakarta: Perfect for Business Professionals

9 Top Pet-Friendly Apartments in Jakarta Starting from IDR 400 Million

9 Reasons to Live in South Tangerang

10 Luxury Homes Recommendations in Tangerang

12 Luxury Homes in Batam with High Investment Potential

8 Reasons Medan is a Great Choice for Living and Investing

Imam

7 Inspirasi Taman Kering Belakang Rumah, Minim Perawatan & Estetik

8 Inspirasi Desain Dapur Minimalis Modern, Mewah dan Cantik

7 Inspirasi Warna Cat Rumah yang Bagus dan Cerah, Ruang Lebih Segar!

7 Perpaduan Warna Coklat untuk Cat Rumah, Elegan & Nyaman

7 Inspirasi Desain Pagar Batu Alam Cantik, Aman & Estetik

7 Inspirasi Desain Tangga Besi, Elegan dan Minimalis

7 Jenis Tanaman Merambat di Pagar, Hiasan Asri di Rumah!

7 Contoh Model Teralis Jendela Minimalis, Rapi dan Bersih

7 Warna Cat Kamar Tidur Elegan, Simple dan Minimalis

5 Rekomendasi Perumahan di Tangerang Selatan, Harga Bersaing!

7 Jenis Tanaman Rambat Dinding Tembok Tahan Panas, Cocok di Indonesia

9 Model Pagar Taman Minimalis: Besi, Kayu, Bambu & Lainnya