Nusantara, or the Capital City of Nusantara (Ibu Kota Nusantara), is the future capital city of Indonesia. According to the Indonesian government, the inauguration is set for 17 August 2024 (Indonesian Independence Day). The city, located on the island of Borneo in the province of East Kalimantan, will replace Jakarta as the national capital city. For many people, investing in real estate in Nusantara might be interesting.
Can foreigners buy land and property in Nusantara?
Foreigners can buy land and property in Nusantara. However, it’s unclear what the regulations will be as the government is still constructing the city. Certainly, foreigners won’t be able to obtain full ownership of land or property with Hak Milik (HM), just like in any other Indonesian city or town. As further discussed in this article, there are still different ways foreigners can buy property in Indonesia’s new capital city.
In July 2024, Indonesia’s president, Joko Widodo, signed Presidential Regulation No. 75 of 2024 to attract foreign investors to its new capital city, Nusantara, by offering extended land rights. Investors can obtain Hak Guna Usaha (HGU) for up to 190 years, divided into an initial 95 years and a possible 95-year renewal. The regulation also simplifies business licensing and provides various incentives for infrastructure development. This move is designed to ensure long-term investment security and promote the rapid growth of Nusantara, making it an attractive destination for international property investors.
Buy real estate on Borneo, East Kalimantan
Although Nusantara is located on the island of Borneo (East Kalimantan), the regulations may differ from other cities. The government is still building the city, which has to host 1.5 million government employees. Once construction is done, there will be more clarity about the regulations for buying property in Nusantara.
How can foreigners buy real estate in Nusantara?
Foreign nationals (WNA) can’t buy property in Nusantara under a Hak Milik title, which only Indonesian nationals are entitled to, but can instead buy Nusantara property in five other ways:
- Leasehold: Indonesian leasehold agreements are primarily valid for 25 years and enable foreigners and PT PMAs to invest in property for residential and commercial use.
- Hak Pakai (HP): Foreigners with KITAS or KITAP can buy specific Indonesian properties under the Hak Pakai title. Buying under Hak Pakai may qualify foreigners for a Second Home visa, which is valid for five or ten years.
- Hak Guna Bangunan (HGB): Hak Guna Bangunan allows foreigners to build and own property on land owned by someone else, such as an Indonesian entity or the state.
- PT PMA: Foreigners can invest in Indonesian property to generate rental income through a PT PMA and qualify for a two-year Investor KITAS.
- Passport: In 2023, the Indonesian government allowed foreigners to buy property in Nusantara using only their passport, subject to specific investment and land size criteria.
Assessing your needs and circumstances is crucial if you’re considering buying property in Nusantara. Several options exist, including leasehold, Hak Pakai, or passport ownership. It’s worth noting that specific requirements must be met to qualify for Hak Pakai or passport ownership.
Another alternative is Hak Guna Bangunan, which entails leasing land and constructing your property. For those interested in investing or obtaining an Investor KITAS, purchasing property through a PT PMA may be the optimal choice. However, it’s worth noting that setting up a PT PMA in Indonesia can take up to ten weeks.
How to find Nusantara property for sale?
If you’re considering buying property in Nusantara, you might wonder where to start your search. Fortunately, there are a variety of options available to you. One common approach is using real estate websites specializing in Nusantara properties. These sites typically offer a diverse selection of properties you can narrow by applying filters based on your preferences. This is a convenient way to quickly identify properties worth considering.
Teaming up with a reputable local real estate agent can be wise if you’re searching for property for sale in Nusantara. These agents possess invaluable knowledge of the local real estate market, an extensive network, and a portfolio of listings. Doing so allows you to find the perfect property in Nusantara swiftly and seamlessly.
Navigating the real estate market in Nusantara can be daunting, and it is not recommended to do it alone. Our team of experts is here to assist and guide you in finding your dream property. Whether you are a first-time homebuyer or an experienced investor, we have the expertise to help you make an informed decision. If you want more information on our services, please provide your details below or email us at hello@ownpropertyabroad.com. We will be happy to assist you.
Land and property prices in Nusantara
It is unclear what the real estate prices in Nusantara will be once the government is done constructing the new city. According to experts, the pricing of land and property will be way lower than in Jakarta, the current capital city.
Reasons to invest in Nusantara real estate
According to government plans, the city will host living space for roughly 1.5 million civilians. Foreign embassies and international organizations will also have their land and have to move their offices within ten years after the inauguration of the new capital city.
About 1.5 million government employees will live in the city once it’s built; investing in land or property might be interesting before construction is done—the same counts for neighboring cities like Balikpapan. Nusantara won’t get its airport but will instead use the international airport of Balikpapan, which also offers investment opportunities in the adjacent town.
Are you interested in buying a house or land in Nusantara?
Do you want to buy property or land in Nusantara? There are several ways foreigners can invest in real estate in the new capital city of Indonesia. The primary and recommended way is through a PT PMA, which any foreigner can establish. Establishing such a foreign-owned company requires a real estate agency that guides you through the process, as it’s challenging to do independently.
Need help buying property in Nusantara?
Looking to buy property in Nusantara, Indonesia? Leave your name and email below, and our expert team will assist you with every step of the process, from legal assistance to finding the perfect property, negotiating terms, and conducting thorough due diligence. We provide personalized support tailored to your needs, ensuring a smooth and successful purchase experience. Whether you’re a first-time buyer or an experienced investor, we’re here to help. You can also email us directly at hello@ownpropertyabroad.com for assistance. Start your property journey in Nusantara today!
Frequently Asked Questions (FAQs)
Can a foreigner buy a house in Nusantara?
Foreigners can buy a house in Nusantara if they opt for a leasehold agreement, Hak Pakai, PT PMA, Hak Guna Bangunan, or with their passports. Most foreigners buy through a PT PMA, which grants them a two-year valid KITAS visa.
How expensive is real estate in Nusantara?
Real estate prices in Nusantara are relatively low compared to Jakarta, although they are above the national average. With an increasing number of companies relocating to Nusantara, it is anticipated that real estate prices will rise in the coming years, according to experts.
Where can I find land or a house for sale in Nusantara?
To find land for sale in Nusantara, you can contact local real estate agents, browse online real estate marketplaces, check out classified ads in local newspapers and websites, or network with people.
2 Responses
I want to invest in nusantara in real estate property land or resort or house or in factory or any running businesses. How to do?
Hi Pravin,
You can buy a real estate property in Nusantara on yourself, or with help from a local real estate agency. The last option is recommended, as these local companies know all ins-and-outs of the market.
^ Matt