The land price in Indonesia has grown over the last few years and is expected to continue doing so as land ownership regulations are becoming friendlier to foreigners. Indonesia is an attractive destination to foreigners looking to invest in real estate with a high investment return. Indonesia has many different types of land to offer, so you will always find a piece that meets your wishes. This article gives an overview of the average land price in Indonesia.
Average land price in Indonesia
The land price in Indonesia varies depending on the location and license. For example, the average land cost in Indonesia in urban areas is typically higher than in rural areas. This is due to the higher demand for land in urban areas, where you can access business centers, public transportation, and other amenities. In contrast, Indonesian land prices in rural areas are generally lower due to the lower demand. However, rural areas still have the potential to offer agricultural or tourism-related development opportunities.
The average land price in Indonesia is IDR 15.26 million ($992), according to the Bank Indonesia property price index of Q4 2022. However, the actual land price in Indonesia could be higher or lower, depending on where you want to buy land in Indonesia.
Get help with buying land in Indonesia
Bali land price
Land price in Bali varies per region. You might find lower land prices when looking for Uluwatu land for sale rather than in Canggu or Seminyak. The price to buy land in Bali has increased over the last few years due to rising demand for tourist accommodation. You find an overview of the average Bali land price below.
|Average buy price||Average price/sqm||Average rent price|
|Land in Bali||IDR 1.87 billion ($121,550)||IDR 1.72 million ($112)||IDR 14.5 million ($943)|
Seminyak has some of the highest land prices, averaging around IDR 15 million ($975) per square meter due to its popularity with tourists and proximity to high-end restaurants, shopping centers, and other amenities. Canggu offers a more laid-back option for tourists, but land prices remain relatively high because of the area’s growing popularity.
You can find affordable options in Bali’s northern and western parts, generally further from tourist hotspots. Land prices in these areas average around IDR 1 million ($65) per square meter. To many people, Bali is their favorite place in Indonesia, but you won’t find the cheapest land in Indonesia here.
Jakarta land price
Jakarta is considered one of the best places to buy land in Indonesia. Jakarta is a densely populated city with limited land available for development, making it all the more challenging to find land suitable for investment. Land prices in Jakarta are higher than in other parts of Indonesia. Especially commercial spaces and condos are in high demand.
The average land price in Jakarta is IDR 4 billion ($260,000) and IDR 12.5 million ($813) per square meter, making it higher than the average land price in Indonesia. The median rent price is IDR 438 million ($28,470), with an annual growth of 16.6%.
The Indonesian government has recently made plans to move the capital from Jakarta to Nusantara, which could impact the real estate market in the city.
Calculate the land price in Jakarta
Proper planning and research make it possible to estimate Jakarta’s land costs. Some key factors to consider include the land’s location and size. By breaking down each cost element and creating a budget, you can better understand the total cost of buying a piece of land in Jakarta. To help with this process, our online calculator can assist in estimating the costs of purchasing land in Jakarta.
Java land price
Are you looking for the cheapest land in Indonesia? Then you might want to buy land in Java, Indonesia. Indonesian plantation land prices in Java are overall more affordable than the price of land in Bali, while the procedure to buy land in Java, Indonesia, is the same as in other regions of Indonesia. For example, Surabaya is Indonesia’s second-largest city, where land prices average around IDR 13.2 million ($858) per square meter, as seen in the table below.
|Average buy price||Average price/sqm.||Average rent price|
|Land in Surabaya||IDR 4.3 billion ($279,500)||IDR 13.2 million ($858)||IDR 120.8 million ($7,852)|
If you’re interested in buying land in other parts of Indonesia, you might also want to look into land for sale in Sumatra, Sulawesi, and other Indonesian islands, where the Indonesian land price is much lower than in Bali and Jakarta.
Lombok land price
Lombok is a serene volcanic island where you can find tracts of untouched land. There are several land options available in Lombok. Those looking for farmland for sale in Indonesia who can’t find their desired real estate in Bali might want to check out Lombok, as the cost of land near Bali, Indonesia, is lower than in Bali. The agricultural land price in Indonesia is usually lower than the Indonesian industrial land price, although you cannot always build property on agricultural land. That’s why it is important always to check the local real estate laws and regulations.
Increased attention draws more tourists to Lombok, making it an attractive investment opportunity—land prices in Lombok average around IDR 3.5 million ($228) per square meter. Foreigners can buy land in Lombok, Indonesia, in the same way as in other parts of the country.
4 other costs involved in buying land in Indonesia
You now have an overview of the land price in Indonesia. But aside from the average cost of land in Indonesia, you should be aware of the additional costs involved in buying land in Indonesia.
1. Property construction costs
The cost of building a house or villa in Indonesia can vary depending on the type of structure and location, such as whether it is for commercial or residential purposes. You must also consider expenses for obtaining Building Approval (PBG) and other required licenses.
2. Maintenance costs
Maintenance is also essential, as you do not want your land to degrade and lower its value. As such, you should set aside a budget for maintenance costs, which include utilities, repairs, cleaning, and landscaping.
3. Property management costs
Hiring a reputable property management company will save you time and money while ensuring your property gets the best treatment. It is advisable to work together with a property manager when you buy property in Indonesia for rental.
4. Taxes and legal fees
When purchasing land, be sure to pay these four taxes: Transfer Tax (BPHTB), Value Added Tax (VAT), Land and Building Tax (PBB), and Documentary Stamp Tax (DST). Find more about these taxes in our Indonesian property tax guide.
Indonesia land price calculator
Use our tool to calculate the average cost of the land you want to buy.
How can foreigners buy land in Indonesia?
Foreigners can buy land in Indonesia in several options. It is important to know that only Indonesian nationals can obtain full ownership of land in Indonesia through Hak Milik (HM). There are a few other ways foreigners can buy land, although they can never get the same land ownership as Indonesian nationals.
- Hak Pakai (HP): Foreigners holding a KITAS or KITAP visa can buy a property with the Hak Pakai title if they meet specific requirements. It’s worth noting that not all properties are eligible for Hak Pakai.
- Hak Guna Bangunan (HGB): Hak Guna Bangunan is a land title that gives foreigners the right to build and own property on land owned by someone else, like an Indonesian national or the state.
- Leasehold: Foreigners can buy land through a leasehold agreement. The leasehold is, in most cases, valid for 25 years. The contract can be extended for another 25-year and 30-year period.
- Investment through PT PMA: Foreigners can establish a foreign-owned company, called a PT PMA, a legal entity that can buy freehold or leasehold land. One of the benefits is that foreigners can obtain an Investor KITAS if they own a PT PMA, which allows them to stay in Indonesia for two years.
- Buying with a passport: In 2023, the Indonesian government announced that foreigners can buy property with only their valid passport. There are several requirements, such as a minimum investment amount and a maximum land size.
Buy land in Indonesia with Own Property Abroad
Are you looking to buy land in Indonesia? Own Property Abroad can assist you and ensure a seamless and hassle-free property journey. Thanks to our extensive knowledge and local experience in the Indonesian market, we can help with legal requirements, finding suitable land, negotiating the best deals, and conducting due diligence.
With our expert team, you won’t have to navigate the complexities of the Indonesian market alone. For further information on how we can assist you, kindly drop your details below or email us at email@example.com. Let’s start working on your property success story today!
Get help with buying land in Indonesia
The land price in Indonesia is continuously increasing, making it an opportune time to invest while the market conditions are still relatively affordable. With the continuous development of infrastructure and transportation systems, it would be no surprise that Indonesia will become an economic powerhouse soon. It can be challenging for foreigners to research the real estate market in Indonesia. That’s why working with a real estate agent who can guide you through the process and offer the best land price in Indonesia is smart.
Frequently Asked Questions (FAQs)
How much does land cost in Bali, Indonesia?
On average, the price of land in Bali is IDR 1.72 million ($112). The land prices vary enormously depending on the area where you buy the land. Land prices are higher in tourist hotspots such as Canggu and Seminyak than in other parts of Bali.
Are houses in Indonesia cheap?
The average house price in Indonesia depends on the location and size. Buying a house in Indonesia can cost you IDR 8.5 million ($553) per square meter outside major cities. In major cities, a place can cost an average of IDR 18.2 million ($1,183) per square meter.
How to find land for sale in Indonesia?
You can find land for sale in Indonesia on real estate websites, local marketplaces, real estate agents, and even asking locals.
How much does a hectare of land cost in Indonesia?
According to the Indonesia land price index, one hectare of land in Indonesia can cost between IDR 15 million ($975) and IDR 1.5 billion ($97,500), depending on the location. However, these prices can fluctuate due to the economic and real estate market conditions.
What does it cost to purchase land in Indonesia?
Besides the land price in Indonesia, purchasing land in Indonesia involves various costs, such as notary fees, transfer taxes, and due diligence costs. These costs can add 10-15% to the purchase price.
How to buy land in Indonesia?
You can buy land in Indonesia by establishing a PT PMA to hold freehold land as a legal entity. It’s also possible to purchase land through a leasehold agreement. This can be done as an individual or through a PT PMA.