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Property ownership rules in Indonesia differ for expatriates and Indonesian citizens. The government has specific regulations for foreign property ownership.
Rumah123 is here to clarify these rules. Many expatriates have questions about buying property in Indonesia, such as:
- Can expatriates own property in Indonesia?
- Are expatriates allowed to have building use rights?
- Is it possible for expatriates to buy freehold property in Indonesia?
- Can expatriates purchase a house in Indonesia?
***
Expatriates have long been drawn to upscale neighborhoods in South Jakarta, Bali, and Batam. Recently, BSD City, Bintaro, and Alam Sutera have also gained popularity.
What are the rules for buying property? Is there a minimum price?
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Latest Government Regulations for Expatriates Buying Homes in Indonesia
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Indonesia is currently simplifying property ownership for foreigners. Let’s break down the key regulations:
- Government Regulation (PP) Number 18 of 2021: This covers Management Rights, Land Rights, Flats and Land Registration.
- Decree of the Minister of Agrarian Affairs and Spatial Planning (ATR/BPN) Number 1241/SK-HK.02/IX/2022: This outlines foreign property purchase requirements and pricing.
Recent changes have made it easier for expatriates to buy property in Indonesia.
Expatriates now only need a passport and visa to purchase property; they no longer require a permanent or temporary residence permit (KITAS/KITAP).
Additionally, ownership options for expatriates have expanded. Apartment units can now be owned for up to 80 years, not just leased.
The minimum price for foreign property buyers varies by region but is generally between one and five billion rupiah.
These are some of the key changes to property ownership laws for foreigners in Indonesia.
Property Price Limit for Expatriates
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The government has set minimum prices for homes that foreigners can buy. These prices are outlined in detail in Ministerial Decree Number 1241/SK-HK.02/IX/2022 (Keputusan Menteri ATR/BPN Nomor 1241/SK-HK.02/IX/2022).
Landed House Price Limits
| Region |
Price Limit* |
| DKI Jakarta |
5,000,000,000 IDR |
| Banten |
5,000,000,000 IDR |
| West Java |
5,000,000,000 IDR |
| Central Java |
5,000,000,000 IDR |
| East Java |
5,000,000,000 IDR |
| Special Region of Yogyakarta |
5,000,000,000 IDR |
| Bali |
5,000,000,000 IDR |
| West Nusa Tenggara |
3,000,000,000 IDR |
| North Sumatra |
2,000,000,000 IDR |
| East Kalimantan |
2,000,000,000 IDR |
| South Sulawesi |
2,000,000,000 IDR |
| Riau Islands |
2,000,000,000 IDR |
| Other regions |
1,000,000,000 IDR |
*Price limit policies may change at any time.
Flat Price Limits
| Region |
Price Limit* |
| DKI Jakarta |
3,000,000,000 IDR |
| Banten |
2,000,000,000 IDR |
| West Java |
2,000,000,000 IDR |
| Central Java |
2,000,000,000 IDR |
| East Java |
2,000,000,000 IDR |
| Special Region of Yogyakarta |
2,000,000,000 IDR |
| Bali |
2,000,000,000 IDR |
| Other regions |
1.000.000.000 IDR |
*Price limit policies may change at any time.
Provisions for Property Ownership by Foreigners
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Expats Can Own Property with Use Rights (HGB)
Foreigners can own property in Indonesia, but the ownership rights are different from those of Indonesian citizens.
Instead of full ownership (Certificate of Ownership Rights, Sertifikat Hak Milik or SHM), foreigners can hold either Use Rights or Building Use Rights (Hak Guna Bangunan or HGB).
HGB rights can last up to 80 years. It’s important to renew this right before it expires.
Time Limits for Property Ownership
Expatriates can hold property rights for a maximum of 80 years, but only as long as they maintain a valid residence permit in Indonesia.
Specific time limits for property rights are outlined in Government Regulation (PP) Number 103 of 2015, Article 6:
- Initial term: Property rights for houses granted on land with Right to Use (as referred to in Article 4 letter a number 1) are granted for an initial period of 30 years.
- First extension: This term can be extended by an additional 20 years.
- Second extension: After the first extension, the property rights can be renewed for another 30-year term.
Occupancy Requirements
Foreign property owners must live and work in Indonesia. The government wants to ensure that properties are used as homes, not just investments.
If you leave Indonesia for more than a year, you must sell or transfer your property to someone else who meets the government’s requirements. If you don’t, the property could be returned to the landowner or sold by the government.
Restrictions on Property Types for Expatriates
Expatriates are not allowed to own all types of property. These restrictions are detailed in Article 4 of Government Regulation (PP) Number 103 of 2015:
Foreigners can own the following types of residences:
- Single houses on land with:
– Use Rights; or
– Use Rights over Ownership Rights, as agreed upon through an agreement and certified by the Land Deed Official (Pejabat Pembuat Akta Tanah or PPAT).
- Structures built on land with Right of Use.
Expatriates Can Inherit Property in Indonesia
Expatriates who have a legal residence permit in Indonesia can inherit property upon their death. This right is outlined in Government Regulation (PP) Number 103 of 2015, specifically Articles 2, paragraphs 3 and 4.
The regulation states the following:
- A foreigner’s house or dwelling can be inherited by their heirs.
- If the heir is also a foreigner, they must hold a valid residence permit in Indonesia.
Expatriates Can Own Freehold Property in Indonesia
While foreigners can’t typically own property outright in Indonesia, there are some exceptions.
- Marriage to an Indonesian Citizen: Foreigners married to Indonesian citizens can own property with the same rights as Indonesian citizens. This is outlined in Government Regulation (PP) Number 103 of 2015.
- Property Ownership Restrictions: It’s important to note that there are specific rules about the type and value of property foreigners can own, as well as where it can be located.
We recommend consulting with a legal professional for detailed information about your specific situation.
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