In 2023, Indonesia implemented a new property law that allows foreigners to buy property in Indonesia with a passport. This change in real estate regulations is part of the Indonesian government’s efforts to attract more foreign investments. Before this law, foreigners could only purchase Hak Pakai property, leasehold property, or establish a PT PMA to buy freehold property for investment, which were quite complex processes. With the new law, the process for foreigners to purchase property in Indonesia has become much more straightforward. This article further explains what this new process looks like.
Buy property in Indonesia with a passport: How does it work?
The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency announced in 2023 with Government Regulation 18/2021 that foreigners can buy and own property in Indonesia by simply presenting their passport or visa. Before that, foreigners had to have a Limited Stay Permit Card (KITAS) or a Permanent Stay Permit Card (KITAP) to buy property in Indonesia. Indonesia’s new property law states that these permits will be provided after the property purchase.
Indonesia’s new property law aimed to boost Indonesia’s competitiveness against countries like Singapore, Malaysia, and Thailand. The government believed encouraging foreign activity in Indonesia could enhance the nation’s competitiveness. In line with that, the Indonesian government also launched the Second Home Visa in 2022 and the Golden Visa in 2024. Indonesia wants to create more job opportunities and stimulate the national economy by making it easier for foreigners to invest in Indonesian real estate.
Government Regulation No. 18/2021 has also expanded the ownership options for apartments for foreigners who want to buy property in Indonesia with a passport. This allowed the purchase of real estate with a Hak Pakai (HP) or Hak Guna Bangunan (HGB) title on state-owned land, property rights land, and management rights land (HPL).
Requirements for foreigners to buy property in Indonesia with only a passport
There are several requirements for buying property in Indonesia as a foreigner with only a passport. First, the foreign national must have a passport valid for at least 36 months from purchase. There are also regulations about the land size and minimum investment capital. A person can own only one plot of land with a maximum of 2,000 m2.
Minimum price to buy landed houses in Indonesia with just a passport:
- Jakarta, Banten, West Java, Central Java, East Java, Special Region of Yogyakarta, and Bali: IDR 5 billion ($325,000)
- West Nusa Tenggara: IDR 3 billion ($195,000)
- North Sumatra, East Kalimantan, South Sulawesi, Riau Archipelago: IDR 2 billion ($130,000)
- Other regions or provinces: IDR 1 billion ($65,000)
Minimum price to buy flats/apartments in Indonesia with just a passport:
- Jakarta: IDR 3 billion ($195,000)
- Banten, West Java, Central Java, East Java, Bali, Special Region of Yogyakarta: IDR 2 billion ($130,000)
- Other regions or provinces: IDR 1 billion ($65,000)
Other ways to buy property in Indonesia as a foreigner
Foreign nationals can now buy property in Indonesia with a passport. However, foreigners who are not eligible have still other options to purchase real estate in Indonesia:
- Hak Pakai: Foreigners who reside in Indonesia can buy property through a Hak Pakai title. Not all properties can be purchased with Hak Pakai, and there are specific other Hak Pakai requirements, such as minimum investment requirements and a valid Indonesian work permit.
- Hak Guna Bangunan: The Hak Guna Bangunan title gives PT PMAs the right to own freehold real estate, whether it’s land or buildings. It’s also possible to own a building through HGB on land leased. Hak Guna Bangunan, mostly valid for 30 years and extendable up to 80 years, makes building a villa or house easier. There are several HGB requirements to be aware of.
- Leasehold: Many foreigners opt to buy property through a leasehold agreement, which gives an individual the right to lease land and properties for an extended period, mostly 25 years. Leasehold agreements can be used for residential or commercial purposes, making them popular for individuals and PT PMAs.
- Investment through PT PMA: Those considering investing in property and generating rental income can buy Indonesian property through a PT PMA. This company is an Indonesian entity that can hold freehold property or lease property. One of the benefits is that a PT PMA allows a foreigner to obtain KITAS, a temporary stay permit valid for two years.
Expert assistance for foreigners buying property in Indonesia
Navigating the process of buying property in Indonesia as a foreigner is now more accessible with the option to purchase using just your passport. Our experienced team is here to guide you through every step, whether you choose to buy with a passport or another method. From understanding the legal requirements to finding the perfect property and completing the transaction, we provide personalized support tailored to your needs. You can also email us at [email protected] for more detailed inquiries and specialized assistance. Contact us today to make your property purchase in Indonesia smooth and successful!
Frequently Asked Questions (FAQs)
Can foreigners buy freehold property in Indonesia?
Foreigners cannot buy freehold property in Indonesia unless they do so through a PT PMA (foreign-owned company). Any foreigner can set up a PT PMA, which is a legal entity that can be 100% owned by foreigners and can hold freehold property in Indonesia.
Can foreigners buy land in Indonesia?
Foreigners can buy land in Indonesia if they do so through a PT PMA. Another option is to invest in land through a leasehold agreement, allowing foreigners to use the land for a certain period.
What is Indonesia’s new property law?
Indonesia’s new property law is that foreigners can buy property in Indonesia with a passport. Another new property law in Indonesia is the introduction of the Golden Visa, allowing foreign nationals to stay in Indonesia after investing a certain amount of money in the country.
How can I buy property in Indonesia with a passport?
You can buy property in Indonesia with a passport. You must meet specific requirements, such as a minimum investment amount and a valid passport. Working with a legal agent is advisable if you want to buy property in Indonesia with a passport.
Can foreigners buy property in Bali with only their passports?
Indonesia’s new Government Regulation No. 18/2021 states that foreigners can buy a villa in Bali by only showing their passport. A minimum investment of IDR 5 billion ($325,000) is required to buy property in Bali with a passport.
