Buying Property in Indonesia as a Foreigner
Last updated: July 6, 2026 · Written by the ASEAN Estates Investment Team
A clear, practical guide to the rules, structures and steps for foreign property ownership in Indonesia
Can Foreigners Buy Property in Indonesia?
Yes — but with important restrictions. Under Indonesia’s Basic Agrarian Law (Undang-Undang Pokok Agraria), only Indonesian citizens can hold Hak Milik (freehold / Right of Ownership). Foreigners cannot acquire this title directly.
However, foreigners can legally acquire property in Indonesia through several alternative ownership structures, including long-term leasehold titles, a PT PMA (foreign-owned company), or in some cases through an Indonesian spouse.
Additional restrictions apply on property size (generally capped at 2,000 m² for landed houses) and minimum purchase prices vary by region.
What Types of Property Can Foreigners Own?
Foreigners may purchase the following types of property, subject to using an eligible ownership title:
Apartments & Condominiums
Strata-title apartments in high-rise buildings. The most accessible option for foreigners.
Houses on Hak Pakai Land
Landed homes where the land is held under Right to Use title rather than freehold.
Villas & Resort Properties
Leasehold villas, especially common in Bali and other tourist areas. Often 25–30 year terms.
The 4 Ownership Titles Available to Foreigners
Foreigners cannot hold Hak Milik (freehold). Instead, Indonesian law provides four alternative title types:
Hak Pakai — Right to Use
Initial term: 30 years
Extension: Up to 20 additional years, then further renewal
Eligibility: Requires a valid KITAS or KITAP residency visa
Best for: Long-term residents and expats buying a primary residence or investment property
✅ The most commonly used title for individual foreign buyers in Indonesia.
Hak Sewa — Right to Rent
Typical term: 25 years (negotiable)
Structure: A long-term lease contract with the landowner
Eligibility: Open to any foreigner — no KITAS required
Best for: Holiday home buyers in Bali and tourist areas who want flexibility
ℹ️ Less legal protection than Hak Pakai. Always use a notary and register the lease.
Hak Guna Bangunan — Right to Build
Initial term: 30 years
Extension: Up to 20 years, then further 30-year renewal (total up to 80 years)
Best for: Foreign-owned companies (PT PMA) developing or holding commercial/residential buildings
Note: Typically held by an entity, not an individual foreigner
🏗️ Most commonly used by PT PMA companies for commercial projects.
Hak Guna Usaha — Right to Cultivate
Initial term: 35 years
Extension: Renewable
Use case: Agricultural land, fisheries, large-scale plantations
Best for: Agribusiness investors and eco-resorts with large land holdings
⚠️ Restricted to productive agricultural or agribusiness use — not for residential property.
The PT PMA Route: Safest Option for Serious Investors
A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. Setting one up gives foreigners the broadest and most legally secure path to property ownership.
✅ Key Advantages
- Can hold Hak Pakai (Right to Use) title on land and buildings
- Can hold Hak Guna Bangunan (Right to Build) for development projects
- Properties can convert to Hak Milik when sold to Indonesian buyers, maintaining resale value
- No requirement for an Indonesian spouse or nominee
- Multiple properties can be held by the same entity
- Eligible for commercial financing from Indonesian banks
⚠️ Considerations
- Setup costs and ongoing compliance (annual reporting, audits)
- Minimum paid-up capital of IDR 10 billion for property businesses
- Company must be actively operational and comply with Indonesian company law
- Not suitable for buying raw (undeveloped) agricultural land
Tip: If you’re planning to purchase multiple properties, develop land, or run a property rental business in Indonesia, the PT PMA is almost always the recommended structure. Consult a local notary and legal advisor before proceeding.
Minimum Property Values for Foreigners
The Indonesian government sets minimum purchase prices to ensure foreign investment is substantive. Prices vary by region:
| Region | Minimum Price (IDR) | Approx. USD |
|---|---|---|
| Jakarta | IDR 10 billion | ≈ $620,000 |
| Bali & Java (excl. Jakarta) | IDR 5 billion | ≈ $310,000 |
| West Nusa Tenggara (Lombok) | IDR 3 billion | ≈ $185,000 |
| Batam, Bintan, Karimun & other major regions | IDR 2 billion | ≈ $123,000 |
| All other provinces | IDR 1 billion | ≈ $62,000 |
* USD equivalents are approximate and subject to change with exchange rates.
Step-by-Step: How to Buy Property in Indonesia
Find Suitable Property
Identify a property that fits your budget, intended use, and preferred location. Confirm it qualifies for foreign ownership: check title type, zoning, and that it meets the minimum price threshold for your region.
Verify Licences & Title
Before negotiating, obtain and verify two critical documents: the land/property certificate (confirm title type and ownership) and the Building Permit (IMB/PBG). Confirm the property is not encumbered by debt, disputes, or court orders.
Conduct Due Diligence
Engage a local notary or property lawyer to verify: full ownership chain, any spousal consent requirements, inheritance status, zoning compliance, outstanding tax obligations, and that the certificate type is eligible for foreign transfer. Never rush this step — don’t be pressured by claims of another competing buyer.
Sign the Sale & Purchase Agreement (SPA)
The SPA is signed before an authorised notary (PPAT). Standard market practice requires a 10% deposit at this stage, paid directly to the certificate holder — not to an agent or third party. The agreement should clearly state the title type, price, payment schedule, and completion date.
Complete Payment & Execute Transfer
On the agreed completion date, settle the remaining balance and simultaneously sign the Deed of Sale and Purchase (AJB) in the presence of the notary. The notary submits the transfer for registration with the National Land Agency (BPN).
Registration & Handover
The notary registers the transfer with BPN. The updated certificate is issued in your name (or your company’s name if using PT PMA). You receive the keys and take possession of the property.
Documents Required
For the Buyer
- Valid passport (minimum 36 months remaining validity)
- KITAS or KITAP (required for Hak Pakai purchases as an individual)
- Tax Identification Number — NPWP (required for all transactions)
- Marriage certificate (if purchasing jointly with an Indonesian spouse)
- Proof of funds / bank statements
For the Property
- Land/Property Certificate (Sertifikat Hak Milik or Hak Pakai)
- Building Permit (IMB / PBG)
- Land and Building Tax Certificate (PBB) — confirmed up to date
- Deed of Sale and Purchase (AJB) — prepared by the notary (PPAT)
- Acquisition Duty Certificate (BPHTB receipt)
Additional (PT PMA Purchases)
- Deed of Establishment (Akta Pendirian Perusahaan)
- Company Amendment Deed (Akta Perubahan)
- OSS Business Licence (NIB)
Taxes on Property Purchases
Both buyer and seller have tax obligations, calculated on the higher of the agreed price or the government’s Tax Object Sale Value (NJOP).
🧾 Buyer’s Tax: BPHTB
Rate: 5% of the transaction value
Paid to: Local Revenue Department (BAPENDA)
When: Must be paid before the Deed of Sale is signed
The taxable base is the higher of the transaction price or the NJOP. A non-taxable threshold (NPOPTKP) applies — typically IDR 60–80 million depending on the region.
🧾 Seller’s Tax: PPh
Rate: 2.5% of the transaction value
Paid to: Regional Tax Department (Kantor Pajak)
When: Paid before the Deed of Sale is signed
Both BPHTB and PPh must be settled and receipts presented to the notary before the Deed of Sale and Purchase (AJB) can be executed.
Important: Declaring a price below the NJOP is illegal and can trigger a government audit of both parties. Always transact at fair market value and keep all payment records.
Key Risks & Things to Avoid
⚠️ Nominee Arrangements
Some foreigners try to circumvent restrictions by placing property in an Indonesian national’s name (a “nominee”). This is illegal under Indonesian law. The arrangement is unenforceable in court, and the foreigner has no legal claim to the property if the nominee disputes ownership. Avoid any agent or lawyer who suggests this approach.
⚠️ Unregistered Leases
A lease agreement (Hak Sewa) that isn’t properly registered and notarised offers minimal legal protection. If the landowner sells or the property is inherited, an unregistered lease may not be honoured by the new owner.
⚠️ Skipping Due Diligence
Land disputes in Indonesia are not uncommon. Always verify the certificate with the National Land Agency (BPN), check for inheritance disputes, and confirm there are no outstanding mortgages or court freezes on the property before signing anything.
Indonesia’s Golden Visa & Second Home Visa
Two visa programs opening Medan’s property market to Malaysian and Singaporean investors.
Golden VisaStay duration: 5 or 10 years (renewable) Ideal for investors who want long-term access to Indonesia without relocating permanently. Combine a Medan property investment with Golden Visa rights to visit, manage, and use your asset directly. | Second Home VisaStay duration: 5 or 10 years (renewable) Particularly relevant for the 3+ million Indonesians living in Malaysia and Singapore who want to invest and maintain a home base in Medan. Direct flights from KL, Singapore, and Penang make this highly practical. |
Both visas reduce the friction that historically made Indonesian property inaccessible to non-residents. Consult an Indonesian immigration specialist alongside your property purchase.
Buying in Medan Specifically: What You Need to Know
Minimum Purchase PriceNorth Sumatra (Medan) requires a minimum purchase of IDR 2 billion (~$123,000) for foreign buyers on landed residential property — set by government regulation and applying per transaction. Most off-plan developments in Medan start from IDR 800 million to IDR 1.5 billion for apartments. Confirm the relevant property types and title structures with your notary before committing. | Total Closing Costs in MedanBudget 8–12% of the purchase price for total transaction costs:
On a $150,000 property, allow ~$13,000–18,000 for closing costs. |
Looking to Buy Property in Indonesia?
Our team specialises in guiding foreign buyers through every step of the process — from finding the right property to completing the transfer legally and safely.
Browse Available PropertiesFrequently Asked Questions
Can foreigners buy property in Indonesia?
Yes, but with restrictions. Foreigners cannot hold Hak Milik (freehold) under Indonesia's Basic Agrarian Law, but can legally own property through Hak Pakai (Right to Use), a PT PMA foreign-owned company, or via an Indonesian spouse.
What is Hak Pakai and how long does it last?
Hak Pakai (Right to Use) is the most common title for foreign buyers, valid for an initial 30 years, extendable by 20 years, then renewable again — up to 80 years total tenure, provided the holder has a valid KITAS or KITAP visa.
What types of property can foreigners buy in Indonesia?
Foreigners can purchase apartments and condominiums (strata-title), houses on Hak Pakai land, and leasehold villas or resort properties, most commonly in tourist areas like Bali, typically on 25–30 year terms.
Is there a size limit on foreign-owned property in Indonesia?
Yes — landed houses purchased by foreigners are generally capped at 2,000 square meters, and minimum purchase prices vary by region and property type.
Do foreigners need a visa to buy property in Indonesia?
For a Hak Pakai title, yes — buyers need a valid KITAS (limited stay permit) or KITAP (permanent stay permit) residency visa to qualify for this ownership structure.