Buying and owning property in Bandung as a foreigner

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 Bandung. 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, Bandung, and Surabaya. 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.

What types of properties can foreigners buy in Bandung, and are there any restrictions?

Foreigners can buy luxury houses and condominiums in Bandung under Right to Use (Hak Pakai) or Right to Build (Hak Guna Bangunan) titles, but cannot purchase subsidized housing or state-owned units.

The key restrictions include a minimum property value requirement of IDR 2-2.5 billion for luxury properties, and foreigners can only own one plot per individual or family unit. Maximum land sizes are regulated by Indonesian law, and ownership duration is initially set at 30 years, extendable up to 80 years total with continued eligibility.

Foreigners cannot obtain full freehold ownership (Hak Milik), which remains reserved exclusively for Indonesian citizens. However, they can acquire property through a foreign investment company structure (PT PMA), where the company holds the title rather than the individual.

Compared to local buyers, foreigners face significantly higher minimum investment thresholds and cannot access subsidized housing programs. The PT PMA structure allows for broader property access, including potential freehold purchases, but requires establishing and maintaining a foreign investment company.

What are the residency or visa requirements for foreigners looking to buy property in Indonesia?

As of June 2025, foreigners only need a valid passport to purchase property in Bandung, with previous residency permit requirements (KITAS/KITAP) no longer mandatory.

This represents a significant change from earlier regulations that required long-term residence permits for property ownership. The relaxed requirements make property acquisition more accessible to international buyers who may not be permanent residents of Indonesia.

However, while residency permits are not required for ownership, they may still be beneficial for extended stays in Indonesia and for certain banking or financing arrangements. Foreigners planning to live in their Bandung properties should still consider obtaining appropriate visa status for their intended duration of stay.

Do you need to be physically present in the country to purchase property, or can it be done remotely?

Property purchases in Bandung can be completed entirely remotely using power of attorney arrangements and notarized documents, with electronic signatures accepted for many transaction components.

The remote purchase process requires preparing a comprehensive power of attorney document that grants your representative authority to act on your behalf throughout the transaction. All necessary documentation must be properly notarized and legally validated before submission.

While physical presence is not required, having a trusted local representative or legal counsel is essential for conducting due diligence, property inspections, and managing the complex bureaucratic processes involved in Indonesian property transactions.

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

What is the step-by-step process for buying property as a foreigner, and what documents are needed?

The property purchase process begins with selecting an eligible property type and confirming the land title through the National Land Office (BPN), followed by comprehensive due diligence and legal documentation.

Step	Process	Required Documents
1. Property Selection	Identify eligible property and verify land title via BPN	Property listing, land title certificate
2. Due Diligence	Verify land title, building permits, zoning, disputes, taxes	Certificate of land title, building permits, tax records
3. Legal Agreement	Draft and sign Sale-Purchase Agreement with licensed notary	PPJB or AJB agreement, passport, visa (if applicable)
4. Payment Processing	Pay applicable taxes, fees, and transfer costs	Tax payment receipts, bank transfer records
5. Registration	Register property and transfer certificate to buyer's name	Transfer documents, updated land certificate
6. Final Documentation	Secure legal rights and obtain building approvals if needed	Final ownership certificate, building permits
7. Remote Option	Execute via power of attorney if not present	Notarized power of attorney, representative identification

Is hiring a lawyer mandatory when purchasing property in Bandung, or can you handle the process on your own?

Notary (PPAT) supervision is mandatory throughout the property purchase process for legal compliance and registration, making professional legal oversight unavoidable.

While you could technically handle some aspects independently, hiring a specialized property lawyer or due diligence expert is strongly recommended due to the legal complexity and numerous potential pitfalls in Indonesian property transactions. The notary requirement alone means you cannot complete the process entirely on your own.

Property lawyers provide essential services including title verification, contract review, due diligence coordination, and ensuring compliance with foreign ownership regulations. The cost of legal representation is typically 0.5-1.5% of the property value, which is minimal compared to the financial risks of improper transactions.

Common issues that require professional legal guidance include interpreting complex land title types, navigating zoning restrictions, ensuring proper tax compliance, and managing the intricate bureaucratic processes involved in property transfers in Indonesia.

Which areas in Bandung do foreigners prefer to settle in, and why?

Dago Atas stands out as the most popular area among foreigners due to its elevated location offering scenic mountain views, abundant restaurants and entertainment options, and proximity to Bandung's cultural attractions.

Ciumbuleuit attracts families and those seeking tranquility, featuring green spaces, colonial-era architecture, and a peaceful atmosphere while maintaining convenient access to the city center. The area offers a good balance between urban amenities and residential calm.

Kota Baru Parahyangan has gained popularity for its organized infrastructure, international school access, and modern amenities designed with expatriate needs in mind. Setiabudi and Surya Sumantri also attract foreign residents due to their safety, accessibility, and established expatriate communities.

These areas are preferred because they offer reliable infrastructure, international dining options, established expatriate networks, and good connectivity to Jakarta and other major Indonesian cities. The combination of lifestyle amenities and investment potential makes them particularly attractive to foreign property buyers.

What are the best areas in terms of liveability, rental yields, tourism, and potential for capital appreciation?

Dago Atas and Ciumbuleuit offer the best combination of liveability and capital appreciation potential, with consistent rental demand from expatriates and affluent Indonesian professionals seeking quality living environments.

For rental yields, Dago Atas properties typically generate steady returns due to high demand from short-term and long-term tenants attracted to the area's amenities and scenic location. However, traffic congestion during peak hours can be a significant drawback affecting both liveability and rental appeal.

Kota Baru Parahyangan presents strong capital appreciation prospects due to its planned development, modern infrastructure, and growing reputation among international residents. The area's organized layout and premium facilities support both lifestyle quality and investment returns.

Tourism-related rental opportunities are strongest in Dago Atas due to its proximity to Bandung's main attractions, restaurants, and cultural sites. Properties in this area can benefit from both long-term expatriate tenants and short-term vacation rental income.

Overall, Bandung's property market is experiencing steady price growth driven by urbanization and increasing demand, creating favorable conditions for capital appreciation across these prime residential areas.

What are the current property price ranges in different regions of Bandung?

As of September 2025, average property prices in Bandung show significant variation by property type, with houses averaging IDR 724 million, townhouses at IDR 1.1 billion, and apartments at IDR 562.2 million.

Per square meter pricing reveals apartments command premium rates at IDR 15 million per square meter, while houses average IDR 11.7 million and townhouses IDR 12.2 million per square meter. These figures reflect the growing demand for compact, well-located apartment living in Bandung's urban areas.

Premium areas like Dago Atas and Ciumbuleuit typically command prices 20-30% above city averages due to their desirable locations, views, and amenities. Properties meeting foreign ownership minimum requirements (IDR 2-2.5 billion) are concentrated in these upscale neighborhoods.

Price trends show consistent growth, particularly for mid-range and premium properties, driven by increasing urbanization and limited supply of quality housing in desirable areas. The foreign buyer segment has contributed to price appreciation in luxury property categories.

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.

What are the typical mistakes and pitfalls foreigners make when buying property in Bandung?

The most common mistake is inadequate due diligence on land titles and property certifications, with many foreigners failing to verify proper zoning approvals and potential legal disputes before purchase.

Foreigners frequently overlook the strict eligibility requirements, including minimum property values, maximum land sizes, and ownership limitations, leading to transactions that cannot be legally completed or registered properly.

Many buyers attempt to handle transactions without proper notary or legal oversight, risking contract invalidity, registration problems, and potential disputes with sellers or government authorities. Relying on informal agreements or unregulated intermediaries compounds these risks significantly.

Financial planning errors include underestimating the total cost of ownership, with buyers often surprised by annual taxes, transfer fees, and ongoing maintenance expenses that can add 15-20% to the initial purchase price.

Banking and payment complications arise when foreigners don't properly arrange international transfer mechanisms or fail to understand local banking requirements for large property transactions, potentially delaying or derailing purchases.

Can foreigners access mortgages in Indonesia, and if so, what are the conditions?

Mortgage access for foreigners in Indonesia is extremely limited, with most banks requiring Indonesian citizenship for standard home loan products.

Where financing is available, foreigners face significantly higher interest rates and substantial down payment requirements, typically 40% or more of the property value compared to 10-20% for Indonesian citizens. Terms are generally less favorable across all aspects of the loan structure.

Some international banks operating in Indonesia may offer specialized products for foreign nationals, and financing might be possible through PT PMA company structures, but these options remain rare and expensive. Local Indonesian banks rarely provide mortgage financing to foreigners and maintain restrictive qualification criteria.

Most foreign property buyers in Bandung purchase properties outright with cash or arrange financing through their home country banks using existing assets as collateral, rather than relying on Indonesian mortgage products.

What taxes, fees, and additional costs should foreigners be aware of when purchasing property in Bandung?

Property Acquisition Tax (BPHTB) represents the largest single cost at 5% of the property value, while VAT on new properties adds another 10-11% to the total purchase price.

1. **Government Taxes and Fees:** - Property Acquisition Tax (BPHTB): 5% of property value - VAT on new properties: 10-11% - Annual Land and Building Tax (PBB): 0.1-0.5% annually - Luxury Tax (if applicable): 5% - Registration Fee: 0.2% of property value2. **Professional Service Costs:** - Notary Fees: 1-2.5% of property value - Legal Fees: 0.5-1.5% of property value - Due diligence and survey costs: Variable3. **Additional Expenses:** - Property inspection and valuation fees - Translation and document certification costs - Bank transfer fees for international payments - Property insurance premiums - Utility connection and setup fees

Total additional costs typically range from 15-20% of the property purchase price, which buyers must factor into their budget planning beyond the base property cost.

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

What are the costs and tax implications if you decide to sell the property in the future?

Property sellers in Indonesia pay a mandatory income tax of 2.5% of the sale price, regardless of whether a profit was realized on the transaction.

Real estate agent fees typically range from 3-5% of the sale price if professional agents are used for marketing and transaction management. Additional costs include potential capital gains tax and VAT on appreciation for newer properties.

All property transfers require proper tax clearance, official reporting to relevant authorities, and local registration updates, which involve additional administrative costs and professional fees. The selling process can take several months to complete properly.

Foreign sellers may face additional complications related to currency conversion, international tax treaties, and reporting requirements in their home countries, depending on their tax residency status and the specific bilateral agreements between Indonesia and their home nation.

Planning for exit costs is essential, as the combined selling expenses can reduce net proceeds by 8-12% of the sale price, significantly impacting investment returns if not properly anticipated during the initial purchase decision.

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. Ray White Indonesia - Everything Foreigners Need to Know
2. Own Property Abroad - How to Buy Property in Bandung
3. Bali Business Consulting - Passport-Only Property Purchase
4. Let's Move Indonesia - Property Buying Guide
5. Wise - Buy Property in Indonesia
6. Indonesia Incorp Asia - Property Purchase Process
7. Indonesia Real Estate - Buying Process FAQ
8. Seven Stones Indonesia - Legal Process Guide