Property & Land Ownership in Indonesia

Offering a wide range of business opportunities, Indonesia is often seen as an attractive Asian country for foreign investment. One of the thriving sectors is the construction industry, valued at USD 238 billion in 2021 and projected to grow by more than 5% in the next four years. This projection will attract more interest from investors, which will aid in job creation.

With such an optimistic projection, foreign investors need more convenience regarding property regulation and land ownership in Indonesia. The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency has issued Regulation No. 18 of 2021 on Procedures for Determining the Right to Manage and Rights over Land.

Types of Properties Foreigners Can Own

Foreigners can own the following types of properties in Indonesia:

Types of PropertiesDescriptions
Right to Use (Hak Pakai)Allows foreigners to use the property for a specific period, usually up to 30 years, with the possibility of renewal.
Right to Build (Hak Guna Bangunan)Permits foreigners to build on the land for a set period, typically up to 30 years, with the option to extend.
Right to Lease (Hak Sewa)Foreigners can lease land or property for an agreed-upon period.

Regulations for Owning Property in Indonesia

The regulation states that foreigners who have secured immigration documents could own landed houses or multistory housing that occupy certain types of land with specific requirements:

1. Landed houses

Property TypeDescriptionRequirementsAdditional Conditions
Landed HousesLuxury houses following relevant laws and regulationsOne plot of land permitted per person or familyMaximum purchased area 2,000 sqm. Exemption if:

  • The property positively impacts local economic and social life

  • Permit secured from the Minister
Residency OwnershipFor foreign representatives--

2. Multistory housing

Property TypeDescription
Multistory HousingResidential building with 4 or more stories and 10 or more dwelling units
ApartmentsIndividual units with private kitchens and bathrooms, accessible through shared hallways and stairs
CondominiumsIndividually owned units within a larger building, often with shared amenities like pools or gyms

Restrictions for foreigners in buying property in Indonesia

Foreigners face restrictions on owning land with property rights in Indonesia, governed by the Basic Agrarian Law (BAL), specifically Article 24. Therefore, it is important to be aware of the prohibited actions related to foreign ownership of land and property in Indonesia.

Prohibited ActionsDescription
Direct Purchase of Land with Property RightsUnder the BAL, it is illegal for foreigners to acquire land with property rights directly.
Using Nominee AgreementsAgreements in which an Indonesian citizen holds the land title on behalf of a foreigner are considered illegal and pose significant legal risks.

Steps of Buying Land and Property in Indonesia

Buying property in Indonesia for foreigners can be complicated due to specific regulations and exceptions. These three ways will help you navigate buying land and property in Indonesia.

MethodDescriptions
Right to Use (Hak Pakai)Leasehold rights granting use for up to 80 years (renewable).
Company OwnershipInvest in an Indonesian company that can own land with full rights.
Marriage to an Indonesian CitizenGain indirect rights through joint ownership (legal complexities apply).

Lands Title Available in Indonesia

Once your desired land or property has been obtained, you should attain some titles. The Agrarian Law specifies several regulations concerning the titles and rights over land in Indonesia.

Download “List of Land Ownership Rights in Indonesia”

The Price Mechanism of Land & Property Ownership for Foreigners in Indonesia

Other than the relevant documents, foreigners must comply with the price mechanisms to obtain land & property ownership in Indonesia. The price varies in every region. Find the details below.

Minimum Value to Purchase by Foreigners*
NoRegionLanded HouseMultistory Housing
1JakartaIDR 10 billionIDR 3 billion
2BaliIDR 5 billionIDR 2 billion
3BatamIDR 3 billionIDR 1 billion
4BantenIDR 5 billionIDR 2 billion
5East JavaIDR 5 billionIDR 1.5 billion
6West JavaIDR 5 billionIDR 1 billion
7YogyakartaIDR 5 billionIDR 1 billion
8Central JavaIDR 3 billionIDR 1 billion
9West Nusa TenggaraIDR 3 billionIDR 1 billion
10North SumatraIDR 3 billionIDR 1 billion
11East Kalimantan & South SulawesiIDR 2 billionIDR 1 billion
12Other RegionsIDR 1 billionIDR 750 million

InCorp will professionally arrange the most suitable and risk-averse plan for your land & property ownership investment in Indonesia.

*The scheme can change at any time

InCorp Indonesia as The Solution for Land & Property Ownership in Indonesia

1
FULL SERVICES

InCorp provides complete services to help you obtain the correct titles and other.

2
ONE-STOP SOLUTION

Foreigners who want to own land & property in Indonesia must provide valid.

3
THOROUGH CONSULTATION

InCorp Indonesia offers thorough consultations before you go through the land & property.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Are you ready to make your
mark in Indonesia?

Get in touch with us.

Lead Form

Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

What Our Clients Say

China Fortune Land
Development Co,. Ltd
After comparing several consultants, I found InCorp Indonesia is a international and professional organization with good understanding of local market. InCorp Indonesia helped our company to set up our first Indonesian entity, and also helps with day-to-day operation. InCorp Indonesia showed high level of professionalism. Jump start the business in Indonesia, take care of routine process, therefore we can focus more on our core business.
Desmi
Cekindo provided outstanding services in registering our representative office in Indonesia in a timely manner. Their financial services have been helping us a lot — our local employees feel secure working for our company. Cekindo became our reliable partner with quick response on our needs. Their flexibility and full support of our business in Indonesia are the main reasons to continue in our cooperation.
PT AESK
We chose Cekindo because we considered Cekindo as a professional company with a good attitude and a streamlined business model. Cekindo met all our expectations as it created the atmosphere of accountability and transparency. The most significant added values that we received from cooperation with Cekindo are the time we saved and mistakes we avoided.
Sedbergh, Ltd.
We were searching for suitable partner for the begining of our operation on Indonesian market. After short exploration and recommendation from our business partners we decided for Cekindo. Local knowledge, orientation at our business problematics, contacts and language. In a friendly approach combined with professional service. Consultation before the project – avoids so much unnecessary act of “foreigners” worse overview of the Indonesian legislative.
LEC GROUP
We were searching for suitable partner for the begining of our operation on Indonesian market. After short exploration and recommendation from our business partners we decided for Cekindo. Local knowledge, orientation at our business problematics, contacts and language. In a friendly approach combined with professional service. Consultation before the project – avoids so much unnecessary act of “foreigners” worse overview of the Indonesian legislative.
Our Clients Find This Helpful. Please Review.
Rating: 4.9/5. From 17 votes.
Please wait...