Which visa do foreigners need to buy property in Indonesia?
The visa foreigners need to buy property in Indonesia depends on the way they want to buy property. Generally, there are five methods by which foreigners can buy property in Indonesia. These are the five methods and the visas foreigners need for each method:
- Leasehold: There are no visa requirements to acquire property in Indonesia through leasehold
- Hak Pakai (HP): Foreigners need a KITAS, KITAP, or Second Home Visa to buy property under the Hak Pakai title.
- Hak Guna Bangunan (HGB): Foreigners need a KITAS, KITAP, or Second Home Visa to buy property under the Hak Guna Bangunan title.
- PT PMA: There are no direct visa requirements to acquire property in Indonesia through a PT PMA. However, as the director of the PT PMA must reside in Indonesia, they need an Investor KITAS.
- Passport: There are no direct visa requirements to buy property through a passport.
Some residency permits are also needed for other services. For example, foreigners can only open a local bank account with a temporary or permanent residency permit, such as KITAS or KITAP.
How to obtain visas to buy property in Indonesia?
When applying for an Indonesian visa, it’s essential to consider that the immigration process can be quite bureaucratic. Obtaining a permit like KITAS may take several weeks or even months. To speed up the process, working with a reputable visa agency is advisable. They have connections with the immigration office and can assist you in following all the correct procedures without missing any essential steps.
The cost of using the services of a visa agency greatly depends on the type of visa you need and the length of stay. For example, getting KITAS can cost between IDR 10 million ($630) and IDR 15 million ($945). Applying for other types of visa might be cheaper or more expensive.
Own Property Abroad can assist you with obtaining your visa in Indonesia. For further information on how we can help you, kindly drop your details below or email us at [email protected].
All types of Indonesian visas for foreigners
These are the different kinds of visas, according to the Minister of Law and Human Rights:
- Visa on Arrival (VOA) (Index B213): Citizens from 68 countries can obtain VOA after arriving in Indonesia. VOA is valid for 30 days and can be extended for another 30 days. Foreigners can use the visa for several activities, from tourism and family visits to government duties and business meetings.
- Social Visit Visa
- Single Entry Social Visit Visa (Index B211A): These visas are valid for 60 days, can be extended four times for 30 days each, and can be used for the same activities as VOA.
- Multiple Entry Social Visit Visa (Index D212) – This visa is valid for 12 months but with a maximum stay of 60 days per entry. The visa can be used for the same activities as B211A and B211B but is more expensive.
- Business Visit Visa
- Single Entry Business Visit Visa (Index B211A & B211B): These visas are valid for 60 days, can be extended four times for 30 days each, and can be used for the same activities as VOA.
- Multiple Entry Business Visit Visa (Index D212): This visa is valid for 12 months but with a maximum stay of 60 days per entry. The visa can be used for the same activities as B211A and B211B but is more expensive.
- Temporary Stay Permit (KITAS)
- Work KITAS (Index C312): The maximum length of validity of Work KITAS is 12 months. It’s for foreigners who want to work for an Indonesian company.
- Investor KITAS (Index C313 & C314): This visa is for foreigners wishing to invest in Indonesia. The C313 is valid for one year and can be extended four times for one year each, while the C314 is valid for two years and can be extended three times more for one year each.
- Student KITAS (Index C316): The maximum validity of Student KITAS is two years. It can be extended two times for two years each. This visa is for international students who are accepted to study at an Indonesian Educational Institute.
- Family KITAS (Index C317): This visa is issued to foreigners who want to join an Indonesian spouse or children born out of a mixed marriage. The validity of KITAS from children born out of diverse marriages is one year and extendable. For others, the validity is equal to the validity of the KITAS of the sponsor.
- Repatriation KITAS (Index C318): This visa is for ex-Indonesian citizens and children born out of mixed marriages to regain Indonesian citizenship. It’s valid for one year and can be extended four times with one year each time.
- Second Home KITAS (Index C319): This visa is for foreigners who invest money in Indonesia by depositing at least IDR 2 billion ($126,000) in an Indonesian bank account or by buying luxury real estate in Indonesia with a value of at least IDR 2 billion ($126,000) or IDR 5 billion ($315,000) for luxury real estate in Bali. This visa is valid for five or ten years.
- Permanent Stay Permit (KITAP): Foreigners can obtain a KITAP depending on their status and only when they previously stayed with KITAS. Foreigners can apply for KITAP after living in Indonesia for five consecutive years or after two years of marriage with an Indonesian citizen.
Can foreigners obtain full ownership of Indonesian real estate?
Foreigners cannot obtain full ownership of real estate property in Indonesia. Hak Milik (HM) is a freehold title and Indonesia’s highest form of property ownership. It’s impossible for foreigners, foreign investment companies (PT PMA), and any other Indonesian company (even when owned by an Indonesian citizen) to obtain the Hak Milik. Only Indonesian citizens or legal entities the government stipulates can buy real estate under Hak Milik.
How can foreigners buy real estate in Indonesia?
There are two ways foreigners can buy real estate in Indonesia:
- Leasehold: The most common way is through a leasehold agreement, which allows them to hold ownership over the property for 25 years. Leasehold agreements are extendable up to 80 years.
- Hak Pakai (HP): Some properties in Indonesia are eligible for the Hak Pakai title. This property title allows foreigners with a residency permit to buy property for their residence.
- Hak Guna Bangunan (HGB): The Hak Guna Bangunan title allows foreigners to build and own property on top of land owned by an Indonesian national or the Indonesian state.
- PT PMA: Legal entities can own freehold property or acquire property through a leasehold agreement. The PT PMA is a foreign-owned company and legal entity that can hold real estate and generate income. Most foreigners buy a property through a PT PMA if they intend to buy it as an investment. It also allows them to apply for KITAS, which is a two-year residence permit.
- Passport: The Indonesian government announced in 2023 that foreigners can buy property in Indonesia if it has a minimum value. Read more about the passport requirements here.
Another way to buy property in Indonesia is through an Indonesian nominee. However, this method is illegal because it avoids Indonesian real estate regulations.
Buy property in Indonesia with Own Property Abroad
Are you looking to buy property 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 your visa and legal requirements, finding suitable properties, 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 protected]. Let’s start working on your property success story today!
Frequently Asked Questions (FAQs)
Can foreigners own property in Indonesia?
Foreigners cannot own property in Indonesia through Hak Milik but through Hak Pakai, Hak Guna Bangunan, with their passport, or through a PT PMA. Another option is through a leasehold agreement.
How much does a KITAS cost?
How much a KITAS cost depends on the type (work, investor, student, or retirement). They cost between IDR 10 million ($630) and IDR 15 million ($945).
How can a foreigner live in Indonesia?
Foreigners can live in Indonesia by obtaining the right residency permit. They can apply for a temporary permit, such as KITAS or Second Home ITAS, or a permanent permit, such as KITAP.
