What is the average rent in Indonesia?

Authored by the expert who managed and guided the team behind the Indonesia Property Pack

Everything you need to know before buying real estate is included in our Indonesia Property Pack

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Indonesia. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Indonesian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Jakarta, Surabaya, and Bali. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Daniel Rouquette 🇫🇷

CEO & Co-Founder at Villa Finder

Daniel Rouquette has deep expertise in Indonesia's short-term rental market, thanks to Villa Finder's strong presence across the country. As the CEO and Co-Founder of Villa Finder, he has been managing one of the largest villa rental platforms in the Asia-Pacific region since 2012. The company offers a carefully curated selection of over 4,000 villas in 28 destinations, ensuring guests receive high-end accommodation and tailored services.

What's the current average rent in Indonesia by city and region?

Rental prices in Indonesia vary dramatically depending on location and proximity to city centers.

Jakarta commands the highest rents nationwide, with one-bedroom apartments in the city center averaging $457 per month as of August 2025. Outside Jakarta's central business district, the same apartments cost significantly less at $276 monthly. Three-bedroom apartments in Jakarta's center reach $1,396 per month, making it the most expensive rental market in the country.

Secondary cities offer much more affordable options for tenants and investors. Semarang shows one-bedroom apartments priced at $282 monthly in the center and $198 outside central areas. Surabaya presents even better value with one-bedroom units at just $130 per month, while Tangerang sits slightly higher at $155 monthly for similar properties.

Bali operates as a unique market focused heavily on villa rentals rather than traditional apartments. One-bedroom villas start around $565 monthly, with luxury properties commanding significantly higher rates depending on location and amenities. The island's tourism-driven economy creates distinct pricing patterns compared to mainland Indonesian cities.

It's something we develop in our Indonesia property pack.

How does rent vary by property type across apartments, villas, houses, and commercial spaces?

Property type significantly influences rental pricing throughout Indonesia's major markets.

Apartments dominate urban rental markets, particularly in Jakarta where high-rise living is standard. One-bedroom apartments range from $130 in Surabaya to $457 in central Jakarta, while three-bedroom units can reach $1,396 in premium Jakarta locations. Serviced apartments command premium rates but face higher vacancy challenges, with Jakarta's occupancy falling to 56.8% in Q1 2025.

Villas concentrate primarily in Bali and tourist destinations, serving both long-term expat residents and short-term vacation rental markets. Basic one-bedroom villas start at $565 monthly, while luxury properties with multiple bedrooms, pools, and garden maintenance can command several thousand dollars monthly. Villa rentals often include comprehensive services like cleaning, security, and utility management.

Traditional houses appeal to families and long-term residents, particularly in suburban areas of major cities. These properties typically offer more space than apartments at competitive rates, though exact pricing varies significantly by neighborhood and property condition.

Commercial spaces require separate consideration due to significantly higher utility costs, longer lease terms, and different tax implications. Retail and office spaces in Jakarta's business districts command premium rates with additional service charges that can substantially increase total occupancy costs.

What's the typical rent per square meter for different property categories?

Rent per square meter provides the clearest comparison across Indonesia's diverse property markets.

City	Rent per m² (USD)	Rent per m² (IDR)
Surabaya	$1,840	29,762,635
Jakarta (City Center)	$1,669	27,000,000
Bali (All Properties)	$1,651	26,714,252
Bandung	$943	15,250,000

Surabaya surprisingly leads per-square-meter pricing at $1,840, despite having the lowest absolute rental costs. This suggests smaller average unit sizes or premium locations driving higher density pricing. Jakarta's city center apartments average $1,669 per square meter, reflecting the capital's premium positioning.

Bali's diverse property mix averages $1,651 per square meter across all property types, indicating relatively consistent pricing whether for apartments, villas, or houses. The island's tourism focus creates unique market dynamics where location proximity to beaches, restaurants, and attractions heavily influences per-meter pricing.

Bandung offers the most affordable per-square-meter rates at $943, making it attractive for cost-conscious renters and investors seeking higher space-to-cost ratios. This pricing reflects the city's position as a secondary market with lower demand pressure compared to Jakarta or tourist destinations.

What's the average total monthly rent including all fees and service costs?

Total monthly housing costs extend significantly beyond base rent across Indonesian rental markets.

Utility costs typically add $100 monthly for standard one to three-bedroom apartments, covering electricity, water, and garbage collection. Internet service ranges from $22 to $30 monthly for reliable high-speed connections essential for remote work or business operations. These utility costs remain relatively consistent across major cities regardless of base rent levels.

Villa rentals, particularly in Bali, often include comprehensive service packages covering pool maintenance, garden care, cleaning services, security, and sometimes electricity within the monthly rate. This all-inclusive approach can make villas cost-competitive with apartments when accounting for service convenience and included amenities.

Apartment buildings frequently charge additional maintenance fees, parking costs, and building security charges that can add 10-20% to base rental costs. Serviced apartments include housekeeping and concierge services but command premium rates that may double basic rental costs.

Commercial properties face significantly higher utility and service expenses, with businesses often responsible for air conditioning, elevator maintenance, and professional cleaning services that can exceed residential utility costs by 300-500%. Location in premium business districts further increases service and maintenance charges.

What taxes and government costs apply when renting out property?

Indonesian rental property taxation involves multiple government levies that significantly impact investment returns.

Income tax applies at a flat 10% rate on gross rental income, though regional variations may affect final rates. Foreign property owners without local tax identification numbers face potentially higher tax rates up to 20%, making proper tax registration essential for international investors.

Annual Property and Building Tax (PBB) charges 0.5% of assessed property value regardless of rental income generation. This tax applies to all property owners and represents a fixed annual cost that must be factored into rental yield calculations.

Value Added Tax (VAT) currently stands at 11% with temporary exemptions for properties under IDR 2 billion until June 2025. After July 2025, a 50% VAT exemption applies to homes up to IDR 2 billion, potentially affecting rental property acquisition costs and long-term investment planning.

Property acquisition involves Acquisition Duty (BPHTB) at 5% of sale value for freehold properties, while leasehold properties incur 10% income tax on total lease value. These upfront costs significantly impact initial investment requirements and total project returns for rental property investments.

How do financing costs and mortgage rates affect rental profitability?

Mortgage market conditions in Indonesia directly influence rental property investment viability and returns.

Total bank mortgage loans reached 733 trillion IDR as of January 2025, indicating substantial lending activity and market liquidity. Declining interest rates throughout 2024 and early 2025 have made property acquisition more affordable for investors, potentially boosting rental property demand and pricing power.

Government incentives including VAT reductions and improved lending terms benefit new property buyers in 2025. These supportive policies reduce initial acquisition costs and improve cash flow for rental property investments, particularly for first-time investors or those expanding existing portfolios.

Lower mortgage rates improve rental property profitability by reducing debt service costs relative to rental income. However, financing terms vary significantly between banks and regions, requiring careful comparison shopping to optimize investment returns. Property location, buyer nationality, and down payment levels all influence available financing options.

Currency fluctuation risk affects foreign investors using offshore financing or converting international income to Indonesian rupiah for debt service. Local financing in rupiah eliminates exchange rate risk but may offer different terms compared to international lending options.

What are the key differences between short-term and long-term rental returns?

Short-term vacation rentals generate substantially higher yields but require active management and face seasonal volatility.

Tourist rental properties in Bali achieve yields up to 16.36% for well-positioned villas, significantly exceeding traditional long-term rental returns. These properties benefit from Indonesia's growing tourism sector and strong international visitor demand, particularly for unique accommodation experiences.

Long-term rental leases provide steady returns averaging 4-6% in major cities like Jakarta, with lower management requirements and reduced vacancy risk. These investments appeal to investors seeking predictable cash flow without intensive property management or marketing responsibilities.

Short-term rentals face higher operating costs including frequent cleaning, maintenance, utilities, platform fees, and guest management services. Properties in tourist areas like Lombok average just 26% occupancy rates, requiring premium daily rates to achieve competitive annual returns.

Regulatory considerations differ significantly between short-term and long-term rentals, with tourist accommodations facing additional licensing requirements, tax obligations, and local compliance issues. Long-term rentals operate under more straightforward residential tenancy regulations with established legal frameworks.

It's something we develop in our Indonesia property pack.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Can you provide specific rental price examples for different property types in popular areas?

Concrete rental examples demonstrate actual market pricing across Indonesia's key investment locations.

Property Type	Location	Monthly Rent	Key Features
1-Bedroom Apartment	Jakarta Center	$457	Modern building, central location
3-Bedroom Apartment	Jakarta Center	$1,396	Premium amenities, city views
1-Bedroom Villa	Bali	$565	Pool, garden, basic services
1-Bedroom Apartment	Surabaya	$130	Standard building, good location
1-Bedroom Apartment	Tangerang	$155	Suburban location, modern facilities
1-Bedroom Apartment	Semarang Center	$282	City center, standard amenities

Jakarta's premium positioning becomes clear when comparing identical property types across cities. A basic one-bedroom apartment costs 3.5 times more in Jakarta center compared to Surabaya, while still offering 25% higher per-square-meter rates despite lower absolute costs.

Bali's villa market operates independently from apartment-focused mainland cities, with entry-level properties starting at $565 monthly. Luxury villas with multiple bedrooms, infinity pools, and premium locations can command $2,000-5,000 monthly, particularly for short-term tourist rentals.

Regional cities like Semarang and Tangerang offer middle-ground options between Jakarta's premium pricing and Surabaya's budget-friendly rates. These markets appeal to investors seeking reasonable returns without Jakarta's high acquisition costs or Surabaya's lower absolute rental income.

What are the main renter profiles in Indonesia's major markets?

Indonesian rental markets serve diverse tenant populations with distinct needs and payment capabilities.

1. **Corporate tenants and expatriates** dominate Jakarta's central business district, seeking premium apartments with international standards, building amenities, and proximity to offices. These renters typically sign longer leases and pay higher rates for convenience and quality.2. **Young professionals and domestic workers** constitute the largest rental segment across major cities, preferring affordable apartments or shared housing near employment centers. This demographic drives demand in secondary locations and smaller unit types.3. **International tourists and digital nomads** focus primarily on Bali and other tourist destinations, seeking short-term villa rentals with high-quality amenities, reliable internet, and unique experiences. They typically pay premium rates for flexibility and location.4. **Students and academic staff** concentrate in university cities like Yogyakarta and Bandung, requiring budget-friendly accommodations near campuses. This segment creates steady demand for smaller units and shared housing arrangements.5. **Local families and cost-conscious renters** prefer suburban areas and traditional houses, seeking space and value over premium locations. They often negotiate longer lease terms for better rates and stability.

What are the current vacancy rates across different cities and property types?

Vacancy rates vary significantly across Indonesian markets, indicating different levels of supply-demand balance.

Jakarta's serviced apartment sector faces challenges with occupancy rates falling to 56.8% in Q1 2025. This decline stems from government budget cuts affecting corporate leasing, delayed business expansion projects, and reduced expatriate assignments following economic uncertainties.

Short-term vacation rental markets show mixed performance depending on location and property type. Lombok's Airbnb-style properties averaged just 26% occupancy between June 2024 and May 2025, highlighting the seasonal and competitive nature of tourist accommodation markets.

Traditional long-term rental apartments in established residential areas maintain higher occupancy rates, though specific data varies by neighborhood and property quality. Premium buildings with modern amenities and good management typically achieve better occupancy than older or poorly maintained properties.

Commercial office spaces face separate vacancy challenges related to business confidence, remote work trends, and economic conditions. Retail spaces depend heavily on foot traffic and consumer spending patterns that vary significantly by location and local economic activity.

How have rental yields changed over recent years and what's the forecast?

Indonesian rental yields have experienced significant changes over the past five years, with current trends indicating market maturation.

City	Current Yield (2025)	One Year Ago (2024)	Five Years Ago (2020)	Trend Direction
Jakarta	4.03%	~4%	10-13%	Declining, stabilizing
Surabaya	6.62%	~6%	7-8%	Stable with slight decline
Bali (Standard)	5.05%	5-6%	Higher	Slight decline
Bali (Tourist Villas)	16.36%	Similar	Strong performance	Maintaining high yields

Jakarta shows the most dramatic yield compression, falling from 10-13% five years ago to current levels around 4%. This decline reflects property price appreciation outpacing rental growth, indicating market maturation and reduced investment returns for new purchases.

Surabaya maintains more attractive yields at 6.62%, demonstrating better balance between property prices and rental income. The city's secondary market status provides opportunities for investors seeking higher returns than Jakarta's saturated premium market.

Bali presents a dual market with standard residential properties yielding around 5%, while tourist-focused villas achieve exceptional returns up to 16.36%. This bifurcation creates opportunities for investors willing to manage short-term rental operations.

It's something we develop in our Indonesia property pack.

How do Indonesian rental prices compare with other regional cities?

Indonesia's rental market remains competitive within Southeast Asia, though specific advantages vary by location and property type.

Jakarta's rental yields of 4.03% align closely with Bangkok's central areas, which typically range from 4-6%. Both cities face similar challenges with property price appreciation outpacing rental growth, creating comparable investment environments for international investors.

Kuala Lumpur shows similar yield patterns to Indonesian major cities, indicating regional parity among established Southeast Asian markets. However, regulatory differences and currency stability may influence long-term investment attractiveness between these markets.

Indonesia maintains competitive advantages in tourist rental markets, particularly Bali's villa sector achieving yields up to 16.36%. These returns significantly exceed typical vacation rental yields in Thailand, Malaysia, or Philippines tourist destinations.

Currency considerations affect regional comparisons, with Indonesian rupiah stability and government economic policies influencing relative investment attractiveness. Exchange rate trends and capital control policies can impact total returns for international investors across all regional markets.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Global Property Guide - Indonesia Rent
2. International Citizens - Indonesia Living Costs
3. Properstar - Indonesia House Prices
4. Juwai Asia - Indonesia Property Market
5. Bali Home Immo - Villa Rentals
6. CPT Corporate - Legal Considerations
7. EMA Estate - Indonesia Tax Laws
8. MUC - VAT Incentive Extension
9. Statista - Indonesia Mortgage Value
10. LMI Consultancy - Indonesia Investment Timing