IKNPOS.ID – Foreigners buying property in Indonesia can be an attractive investment opportunity. However, property ownership rules for Foreigners buying property in Indonesia are quite strict and governed by various government regulations.
This article will discuss in detail the rules, requirements, and steps that must be followed by foreign nationals who want to buy a house in Indonesia.
Legal Basis for Property Ownership by Foreigners
Property ownership by foreign nationals in Indonesia is regulated by several regulations, including:
Government Regulation (PP) No. 103 of 2015
- Regulates the ownership of residential houses by foreign nationals domiciled in Indonesia.
- Foreign nationals must have a Limited Stay Permit Card (KITAS) as a main requirement.
PP No. 18 of 2021
- Regulates management rights, land rights, and condominium units.
- Explains the types of properties that foreign nationals are allowed to own.
Regulation of the Minister of Agrarian Affairs No. 18 of 2021
- Regulates the procedures for determining management rights and land rights.
- Explains the criteria for properties that foreign nationals are allowed to buy.
Criteria that Foreigners Buying Property in Indonesia
Foreign nationals cannot buy all types of properties in Indonesia. Here are the permitted property criteria:
Landed House
- Must be built on land with Right of Use (Hak Pakai) or Building Use Right (Hak Guna Bangunan/HGB).
- Maximum land area of 2,000 square meters.
- May only be owned by one person or one family.
Condominium (Apartment)
- Must be built on land with Right of Use or HGB.
- Only apartments with a commercial category may be owned by foreign nationals.
Terms and Regulations for Foreigners Buying Property
Have a KITAS
- KITAS is an absolute requirement for foreign nationals who want to buy property in Indonesia.
- KITAS must be renewed every 2 years.
Right of Use Time Limit
- The right to use property by foreign nationals is valid for a maximum of 80 years (30 years + 20 years extension + 30 years renewal).
Property Price Limit
- The price of property that foreign nationals are allowed to buy varies depending on the location.
- These regulations are stated in the Ministerial Decree No. 1241/SK-HK/IX/2022 concerning Acquisition and Prices of Residential Houses/Residences for Foreigners, namely:
Landed House Price Limits
- DKI Jakarta: IDR 10 billion
- Banten: IDR 5 billion
- West Java: IDR 5 billion
- Central Java: IDR 3 billion
- Special Region of Yogyakarta: IDR 5 billion
- East Java: IDR 5 billion
- Bali: IDR 5 billion
- NTB: IDR 3 billion
- North Sumatra: IDR 3 billion
- East Kalimantan: IDR 2 billion
- South Sulawesi: IDR 2 billion
- Other regions or provinces: IDR 1 billion
Condominium Price Limits
- DKI Jakarta: IDR 3 billion
- Banten: IDR 2 billion
- West Java: IDR 1 billion
- Special Region of Yogyakarta: IDR 1 billion
- East Java: IDR 1.5 billion
- Bali: IDR 2 billion
- NTB: IDR 1 billion
- North Sumatra: IDR 1 billion
- East Kalimantan: IDR 1 billion
- South Sulawesi: IDR 1 billion
- Other regions or provinces: IDR 750 million
(Price limits are subject to change at any time)
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