Foreigners can legally own property in Indonesia through regulated frameworks such as Hak Pakai (Right to Use) and long-term leasehold agreements.
Overseen by the Ministry of Agrarian Affairs and Spatial Planning (ATR/BPN), these laws allow foreign nationals to acquire houses, apartments, or villas for up to 30 years, extendable up to 60 years.
This structure safeguards Indonesian land rights while promoting foreign investment, tourism growth, and expatriate residency in key regions like Bali, Jakarta, and Batam, ensuring transparent property acquisition within Indonesia’s expanding real estate market.
Can Foreigners Own Land in Indonesia?
Foreigners cannot directly own land under the Hak Milik (Freehold Ownership) title, which is reserved exclusively for Indonesian citizens. However, they can lease land through Hak Pakai titles, which grant long-term usage rights to build, occupy, and transfer property within the lease period.
The leasehold period typically lasts 30 years, with the option to renew for another 30 years. This structure ensures compliance with national laws while enabling secure foreign investment in Indonesian property.
Updated Regulation for Foreign Property Investment in Indonesia
Foreign property ownership in Indonesia is governed by Circular Letter IMI-0820.GR.01.01 of 2022.
Key provisions include:
- Second Home Visa & Stay Permit: Foreign buyers must obtain a Second Home Visa (Visa Rumah Kedua), allowing long-term residence tied to property ownership.
- Eligibility Requirements: A valid passport, photo, and proof of funds of at least IDR 2 billion or a property certificate.
- Electronic Application: The visa is issued via the Directorate General of Immigration through an online process including account registration, document upload, and PNBP payment.
- Reporting & Supervision: Visa holders must report original proof of funds or ownership within 90 days of issuance.
- No Guarantor Requirement: Foreigners may apply independently or with an approved property developer as guarantor.
This regulatory clarity improves transparency for investors and simplifies the process of acquiring property rights in Indonesia.
Also read: Recent Updates on Property Acquisition in Indonesia for Foreigners
Restrictions for Foreign Property Investment
Foreign ownership is limited to leasehold titles with specific size and value conditions:
- Only one property per foreign owner
- Maximum land size: 2,000 m²
- Minimum property value varies by region
- Jakarta: IDR 5 billion (≈ USD 325,000)
- Bali: IDR 3 billion
- Surabaya: IDR 2 billion
Foreigners cannot purchase freehold property or buy land in restricted areas such as national security zones, protected forests, or heritage sites.
Also read: Can a PMA Own Land and Properties in Indonesia?
Requirements for Foreign Property Investment in Indonesia
To buy property legally, foreigners must meet the following:
- Hold a valid passport and Hak Pakai title
- Obtain an appropriate residency visa (work, spouse, or retirement visa)
- Pay all taxes, registration fees, and leasehold charges
- Work with a licensed notary (PPAT) and real estate agent for due diligence
Foreign investors establishing a PMA company (Foreign-Owned Limited Liability Company) may also acquire property for business use under different ownership rules.
The PMA establishment process can be complex and time-consuming, but don’t worry; you can rely on InvestinAsia’s Indonesia PMA company registration services to simplify the process.
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Also read: Buy Your Property in Bali with PT PMA
Visa Options for Property Investors
Indonesia offers multiple visa pathways for property owners:
- Second Home Visa (5–10 years) – for long-term investors or retirees
- Investor KITAS – for PMA company shareholders
- Spousal KITAS – for foreigners married to Indonesian citizens
- Retirement Visa – for individuals aged 55+ with sufficient income
Each visa type enables residence and legal use of property under Indonesian immigration law.
It is important to note that the process for buying property and obtaining a visa or residency permit in Indonesia can be complex and time-consuming.
To simplify the visa application process, you can rely on InvestinAsia’s services for Indonesia Visa Application.
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Best Area for Property Investment in Indonesia
The best area for property investment in Indonesia will depend on your individual needs and preferences. However, some of the most popular areas for foreign investors include:
Jakarta
The capital of Indonesia, Jakarta is a major economic and financial hub. It is also home to a large expatriate community. (check Can Foreigners Buy Property in Jakarta?)
Bali
Bali is a popular tourist destination with a growing real estate market.
Bandung
Bandung is a major industrial and cultural center in Indonesia.
Surabaya
Surabaya is the second-largest city in Indonesia and a major port city.
Restricted Areas for Property Investment in Indonesia
There are a few restricted areas in Indonesia where foreigners are not allowed to buy property. These areas include:
National security
Some areas are considered to be of strategic importance to Indonesia’s national security. For example, foreigners are not allowed to buy property near military bases or airports.
Environmental protection
Some areas are protected due to their environmental significance. For example, foreigners are not allowed to buy property in national parks or forest reserves.
Cultural heritage
Some areas are protected due to their cultural heritage. For example, foreigners are not allowed to buy property in certain villages or temples.
Foreign policy
In some cases, Indonesia may restrict foreigners from buying property in certain areas for foreign policy reasons. For example, foreigners are not allowed to buy property on the Natuna Islands, which are located in a disputed area of the South China Sea.
Key Considerations Before Buying Property
Before purchasing, consider:
- Market maturity: Indonesia’s real estate market is developing, with variations in transparency and pricing.
- Legal complexity: Always verify titles and ownership documents through a certified notary.
- Costs: Include taxes (BPHTB, PPh, PPN), notary fees, and annual maintenance.
- Consultation: Engage legal and visa specialists to simplify the process.
Also read: Indonesia Tax Rate in: A Complete Guide
How to Buy Property in Indonesia for Foreigners
The process for buying property in Indonesia as a foreigner can be complex and time-consuming. It is important to have a qualified lawyer to help you through the process and ensure that all of the requirements are met.
Here is a general overview of the process:
- Identify eligible property under Hak Pakai or leasehold scheme
- Hire a notary and property consultant
- Secure necessary visa and residency documents
- Pay required taxes and fees
- Register property at the Land Registry (BPN)
- Obtain the official Hak Pakai certificate
Following these steps ensures legal ownership and long-term security for your investment.
Foreigners can buy property in Indonesia under Hak Pakai titles and leasehold schemes regulated by the legal framework. While land ownership remains restricted, property usage and investment rights are open to foreign nationals who meet regulatory and visa requirements. By adhering to these rules and partnering with reliable legal advisors, foreigners can safely invest in Indonesia’s thriving real estate market.
Reference:
Kantor Imigrasi Kelas I Khusus TPI Batam. Surat Edaran Ditjenim Nomor IMI-0820.GR.01.01 Tahun 2022 Tentang Visa Dan Izin Tinggal Rumah Kedua. https://kanimbatam.kemenkumham.go.id/category/direktur-jendral-imigrasi/surat-edaran-ditjenim-nomor-imi-0820gr0101-tahun-2022-tentang-visa-dan-izin-tinggal-rumah-kedua.
