Property Ownership for Foreigners in Indonesia

Discover insights on property ownership for foreigners in Indonesia under the latest regulations, including the types of property that can be owned, land rights, minimum price requirements, and more.

The regulations governing property ownership for foreigners in Indonesia have changed since the implementation of Law No. 11 of 2020 on Job Creation as revoked by Law No. 6 of 2023 on the Determination of Government Regulation in Lieu of Law No. 2 of 2023 on Job Creation to become Law (“Job Creation Law”).

To date, the regulations of property ownership for foreigners are regulated in several provisions, as follows: 

1. Articles 143 to Article 145 of Job Creation Law;
2. Article 69 to Article 73 of Government Regulation No. 18 of 2021 on Management Rights, Land Rights, Condominium Units, and Land Registration; and
3. Article 185 to Article 188 of Minister of Agrarian and Spatial Plan/Head of National Land Agency No. 18 of 2021 on Procedures for Determining Management Rights and Land Rights.

The Classification of Property for Foreigners in Indonesia

Foreigners who reside in Indonesia can own commercial houses in the form of landed houses and condominium units.

1. Landed House
Types of land rights for a landed house:

1. right to use; or
2. right to use over (i) right of ownership or (ii) right of management.

The right to use and right to use over the right of ownership is given for 30 years, whereas the land rights can be extended for 20 years and renewed for 30 years.

2. Condominium Unit
The ownership rights of a condominium unit for foreigners who reside in Indonesia are separated from the common equipment, common facility, and common land as long as the condominium is constructed in special economic zones, free trade areas and free ports, industrial zones, and other economic zones.

Both right to use and ownership rights of condominium units owned by foreigners can be transferred, inherited, and encumbered with a mortgage right.
Requirements

The landed house that foreigners can own must meet the following requirements:

1. a luxury category house;
2. one plot of land for one foreigner or one family; and/or
3. land with a maximum area of 2,000 m2.

On the other hand, the condominium unit that foreigners can own must be categorized as commercial condominiums.

The minimum prices of properties for foreigners are determined under the Minister of Agrarian and Spatial Plan/Head of National Land Agency Decree No. 1241/SK-HK.02/IX/2022 on the Acquisition and Prices of Residential/Residential Houses for Foreigners. For instance, in the DKI Jakarta area, the minimum price for a landed house is Rp5,000,000,000.- and the minimum price for a condominium unit is Rp3,000,000,000.-

Moreover, foreigners must not leave Indonesia for one year or more. Failure to comply with this requirement results in the foreigner relinquishing or transferring his rights over his house and land to another party who fulfills the requirements according to the prevailing laws and regulations.