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
Foreigners can legally buy apartments in Indonesia, but cannot own land outright - they must use specific ownership structures like Hak Pakai (Right to Use) or strata titles that provide long-term usage rights up to 80 years. As of June 2025, the Indonesian apartment market offers attractive opportunities for foreign buyers, particularly in Jakarta, Bali, and emerging cities, though buyers must navigate visa requirements, substantial taxes, and complex legal procedures to secure their investment.
Understanding Indonesia's property laws is crucial before making any purchase decision. The country has specific regulations that differ significantly from Western property ownership models, and foreign buyers must comply with immigration requirements while working through notarized transactions that can take several weeks to complete.
If you want to go deeper, you can check our pack of documents related to the real estate market in Indonesia, based on reliable facts and data, not opinions or rumors.
Foreigners can buy apartments in Indonesia using Hak Pakai (Right to Use) titles for up to 80 years or strata titles, but cannot own freehold land like Indonesian citizens.
Most buyers need visa or residency status, must complete notarized transactions, and face significant taxes including 5% transfer tax, with apartment prices ranging from $48,750 in smaller regions to $650,000+ in Jakarta's premium areas.
| Ownership Type | Duration | Available to Foreigners |
|---|---|---|
| Hak Milik (Freehold) | Perpetual | No - Indonesian citizens only |
| Hak Pakai (Right to Use) | Up to 80 years (30+20+30) | Yes - most common for foreigners |
| Strata Title | Tied to land title duration | Yes - apartment units only |
| Leasehold | 25-30 years typically | Yes - contractual right |
| Second Home Visa | 5-10 years | Yes - requires IDR 2 billion investment |
| KITAS/KITAP | Varies | Yes - work/family-based permits |
| Mortgage Financing | Up to 10 years | Yes - 40% down payment required |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Can foreigners legally buy an apartment in Indonesia or are there restrictions compared to locals?
Foreigners can legally buy apartments in Indonesia, but they face significant restrictions compared to Indonesian citizens.
The main limitation is that foreigners cannot own land outright under Indonesia's agrarian laws. Instead, they must use alternative ownership structures that provide long-term usage rights but not full freehold ownership. Indonesian citizens can hold "Hak Milik" (freehold) titles, which are perpetual and fully inheritable, while foreigners are limited to time-bound arrangements.
The most common routes for foreign apartment ownership are through "Hak Pakai" (Right to Use) titles, which allow foreigners to use and occupy property for up to 80 years through renewable periods, or strata titles for apartment units in buildings constructed on Right to Use land. These arrangements provide substantial security and rights, but they differ fundamentally from the unrestricted ownership available to locals.
Foreign buyers must also meet specific visa or residency requirements, complete all transactions through notarized procedures, and pay higher taxes and fees compared to Indonesian citizens. The process is more complex and expensive, but it provides legal pathways for secure long-term property ownership.
It's something we develop in our Indonesia property pack.
What types of ownership titles are available to foreigners for apartments, and how do they differ from full ownership available to Indonesians?
Foreigners have access to three main ownership structures for apartments in Indonesia, each with distinct characteristics and limitations.
| Ownership Type | Duration | Inheritance Rights |
|---|---|---|
| Hak Pakai (Right to Use) | Initial 30 years, extendable by 20+30 years (total 80 years) | Limited - can be transferred to heirs with restrictions |
| Strata Title | Tied to underlying land title duration | Can be inherited by qualifying family members |
| Leasehold | 25-30 years typically, with renewal options | Contractual rights only, limited inheritance |
| Hak Milik (Indonesian citizens only) | Perpetual | Full inheritance and transfer rights |
| Right to Build (Indonesian entities) | Up to 80 years | Transferable to qualifying parties |
| Right to Manage (Indonesian entities) | Up to 70 years | Business inheritance rights apply |
Do I need a visa, residency, or a specific immigration status to be eligible to buy an apartment in Indonesia?
Most secure forms of apartment ownership in Indonesia require specific visa or residency status, though requirements vary by ownership type.
The Second Home Visa has become the most popular pathway for foreign property buyers as of mid-2025. This visa requires proof of funds or property investment worth at least IDR 2 billion (approximately $130,000) and allows stays of 5-10 years. The visa directly supports property purchase eligibility and can be renewed, making it attractive for long-term property owners.
KITAS (temporary stay permit) and KITAP (permanent stay permit) holders also qualify for apartment purchases. These permits are typically obtained through work sponsorship, retirement programs, or family relationships with Indonesian citizens. Each provides different levels of security and duration, with KITAP offering the most stable long-term status.
For simple leasehold arrangements, tourists on visitor visas can sometimes complete transactions, but this provides minimal security and limited legal protection. Most serious property investments require proper residency status to ensure full legal compliance and protection.
The key point is that buying property does not automatically grant residency rights - the visa or residency must be obtained separately, though property ownership can support certain visa applications.
Is it mandatory to be physically present in Indonesia to complete the purchase of an apartment, or can it be done remotely?
Physical presence is not mandatory for completing apartment purchases in Indonesia - transactions can be completed remotely through proper legal representation.
Foreign buyers can appoint a legal representative through a notarized power of attorney, allowing the representative to attend all required meetings and sign documents on their behalf. This power of attorney must be properly notarized and may require authentication at Indonesian consulates depending on the buyer's home country.
All property transactions must be executed before a PPAT (Land Deed Official) or notary, but the buyer's appointed representative can fulfill this requirement. The representative handles deed signing, tax payments, and registration with the National Land Office, completing the entire legal process without the buyer's physical presence.
However, most property experts strongly recommend visiting Indonesia in person for due diligence purposes. Personal inspection allows buyers to verify property conditions, meet with developers or sellers directly, and understand local market conditions before making substantial financial commitments.
Remote purchases work best for buyers who have existing relationships with trusted local professionals or are purchasing from reputable developers with established track records in the foreign buyer market.
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What is the exact step-by-step process and what documents are needed for a foreigner to purchase an apartment in Indonesia?
The apartment purchase process for foreigners involves seven distinct steps that typically take 6-10 weeks to complete from start to finish.
Document preparation is the most time-consuming phase, requiring passport validity of at least 36 months, appropriate visa or residency documentation, Indonesian tax ID (NPWP), comprehensive proof of funds through bank statements, and marriage certificates if purchasing jointly. Due diligence should include verification of developer credentials, property title status, and building permits.
The legal transaction phase begins with signing a preliminary agreement and paying a deposit, typically 10-20% of the purchase price. This is followed by the formal notarial deed (Akta Jual Beli) execution before a PPAT, where all parties sign the Sale and Purchase Agreement. Tax payments must be completed within specific timeframes, including the 5% transfer tax and various registration fees.
Registration with the National Land Office is the final crucial step, where ownership is officially recorded and certificates are issued. This process can take 2-4 weeks and includes verification of all documentation, payment confirmations, and issuance of the final ownership certificate (Hak Pakai or strata title).
Throughout this process, buyers should maintain detailed records of all payments, obtain receipts for all fees and taxes, and ensure proper legal representation to navigate potential complications or delays in the bureaucratic process.
Is hiring a local lawyer or notary legally required or just recommended when buying an apartment as a foreigner?
A notary or PPAT (Land Deed Official) is legally required for all property transactions in Indonesia, while hiring an independent lawyer is not mandatory but strongly recommended for foreign buyers.
The PPAT handles the legal documentation, deed drafting, tax calculations, and official registration with government offices. They are licensed professionals who ensure transactions comply with Indonesian property law and complete all required bureaucratic procedures. Every property transfer must pass through a PPAT to be legally valid.
An independent lawyer provides additional protection through due diligence, contract review, and representation of the buyer's interests throughout the transaction. This is particularly important for foreigners who may not understand local practices, legal terminology, or potential risks in property transactions.
Many foreign buyers make the mistake of relying solely on lawyers or notaries recommended by sellers, developers, or real estate agents. Using independent professionals chosen by the buyer provides better protection and reduces conflicts of interest that could compromise the transaction.
The cost of independent legal representation typically ranges from 0.5-2% of the property value, but this investment provides crucial protection against legal problems, documentation errors, or fraudulent transactions that could result in much larger losses.
Are mortgages actually available for foreigners buying apartments in Indonesia, and what are the typical rates, conditions, and tips to secure financing?
Mortgages are available for foreigners buying apartments in Indonesia, with several major banks offering specialized foreign buyer programs as of mid-2025.
| Bank | Minimum Down Payment | Maximum Loan Term |
|---|---|---|
| Bank Central Asia (BCA) | 40% | 10 years |
| Bank Mandiri | 40% | 10 years |
| CIMB Niaga | 40% | 8 years |
| Commonwealth Bank | 35% | 10 years |
| HSBC Indonesia | 40% | 15 years |
| Permata Bank | 40% | 10 years |
| Standard Chartered | 40% | 10 years |
Loan amounts typically reach up to 60% of property value with maximum limits around $450,000, though some premium lenders may offer higher amounts for qualified borrowers. Interest rates vary significantly based on currency (IDR, USD, or AUD options), borrower profile, and property type, with foreign buyers generally paying higher rates than Indonesian citizens.
Successful mortgage applications require extensive documentation including proof of income, employment verification, tax returns, bank statements covering 6-12 months, existing debt obligations, and detailed property information. Many banks restrict mortgages to select premium developments, so buyers should verify financing availability before making purchase commitments.
It's something we develop in our Indonesia property pack.
What are all the taxes, fees, and hidden costs involved in purchasing and reselling an apartment in Indonesia as a foreign buyer?
Foreign buyers face substantial taxes and fees when purchasing apartments in Indonesia, with total transaction costs typically ranging from 8-12% of the property value.
The primary cost is the 5% Transfer Tax (BPHTB) paid by buyers, calculated on the property's assessed value or transaction price, whichever is higher. Sellers pay a separate 2.5% tax on the selling price, though this may be negotiated into the purchase price in some transactions.
Notary and legal fees range from 0.5-2% of the transaction value, covering PPAT services, deed preparation, and registration procedures. Additional costs include registration fees that vary by region, due diligence expenses, independent legal representation, and potential real estate agent commissions ranging from 2-5% of the property value.
Hidden costs often include property appraisal fees, document translation and notarization, visa or residency application expenses, and ongoing property taxes and maintenance fees. Foreign buyers should also budget for potential currency exchange costs and bank transfer fees for international payments.
When reselling, similar taxes apply along with potential capital gains tax depending on holding period and profit margins. Property taxes continue annually based on assessed values, and condominium or apartment complex fees apply monthly for maintenance and management services.
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.
Which areas or cities in Indonesia are the most attractive for foreigners in terms of lifestyle, livability, rental yields, capital appreciation, and tourism growth?
Jakarta remains the top choice for foreign apartment buyers seeking strong rental yields and capital appreciation, particularly in premium districts like SCBD, Kuningan, and Kemang.
SCBD (Sudirman Central Business District) offers the highest rental yields for foreign investors, with luxury apartments generating 6-8% annual returns due to strong corporate demand and limited premium supply. The area provides excellent international amenities, top-tier restaurants, and proximity to major multinational offices, making it ideal for expatriate renters willing to pay premium rates.
Bali has emerged as the lifestyle leader for foreign buyers, with areas like Canggu, Seminyak, and Uluwatu offering strong tourism-driven rental income combined with exceptional quality of life. Rental yields range from 5-7% annually, supported by year-round tourist demand and growing digital nomad populations who prefer longer-term apartment rentals over hotels.
Surabaya represents excellent value for money with lower entry costs and growing commercial importance as Indonesia's second-largest city. The city offers rental yields of 7-9% with significantly lower purchase prices than Jakarta or Bali, making it attractive for investors seeking higher cash-on-cash returns.
Emerging markets include Batam and Lombok, which offer the lowest entry prices and potential for strong capital appreciation as infrastructure develops. Balikpapan is gaining attention due to its proximity to Nusantara, Indonesia's new capital city, with significant infrastructure investment driving future growth potential.
What are the latest breakdowns of average apartment prices per city or region in Indonesia for 2025?
Apartment prices for foreign buyers vary dramatically across Indonesian cities, with Jakarta commanding the highest premiums and smaller regional cities offering the most accessible entry points.
Jakarta's premium districts require minimum investments of IDR 3-10 billion ($195,000-$650,000) for foreign-eligible apartments, with luxury units in SCBD and Kuningan reaching well above $1 million. Mid-range apartments suitable for foreign ownership typically start around $300,000 in desirable areas with proper amenities and security.
Bali apartment prices range from IDR 2-5 billion ($130,000-$325,000) for foreign buyers, though beachfront and premium locations can exceed $500,000. The wide price range reflects varying locations from inland areas to premium beachfront developments in Seminyak and Canggu.
Surabaya offers more affordable options with foreign-eligible apartments starting around IDR 5 billion ($325,000), providing better value compared to Jakarta while still offering modern amenities and strong rental potential. The city's growing economy and lower cost base make it attractive for value-focused investors.
Regional cities present the most accessible pricing, with Central Java locations starting around IDR 1-3 billion ($65,000-$195,000) and other regions offering entry points as low as IDR 750 million ($48,750). However, buyers should carefully evaluate market liquidity and rental demand in smaller cities before investing.
What are the most common mistakes or legal/financial pitfalls foreigners make when trying to buy an apartment in Indonesia?
The most critical mistake foreign buyers make is failing to verify property titles and developer credentials before signing purchase agreements.
Many buyers skip proper due diligence on land titles, building permits, and developer financial stability, leading to purchases of properties with unclear legal status or from financially unstable developers who may not complete projects. This can result in total loss of investment with limited legal recourse for foreign buyers.
Visa and residency requirements are frequently misunderstood, with buyers assuming property purchase automatically grants residency rights or that tourist visas provide sufficient legal basis for secure ownership. This leads to ownership structures that may not be legally enforceable or that expose buyers to future legal challenges.
Using legal professionals recommended by sellers or developers rather than independent lawyers creates conflicts of interest that can compromise buyer protection. Many foreigners accept this arrangement to save costs, but end up with inadequate legal representation during critical transaction phases.
Financial mistakes include underestimating total transaction costs, which can reach 10-12% of property value, and misunderstanding the differences between leasehold, Hak Pakai, and strata title arrangements. Many buyers also fail to budget for ongoing costs like property taxes, maintenance fees, and potential visa renewal expenses.
It's something we develop in our Indonesia property pack.
How do the rules and benefits for foreign buyers compare to those of other nationalities in Southeast Asia or globally?
Indonesia's foreign property ownership rules are more restrictive than Malaysia and Singapore but similar to neighboring countries like Vietnam and Philippines.
Malaysia allows foreigners to own apartments and condominiums freehold with minimum price thresholds (typically $400,000+ depending on state), while Singapore permits foreign ownership of most private residential properties above certain floors, though with significant additional buyer's stamp duty for foreigners.
Vietnam and Philippines have similar restrictions to Indonesia, limiting foreigners to long-term lease arrangements or specific ownership percentages in condominium buildings. Vietnam allows 50-year leases with renewal options, while Philippines permits foreign ownership of up to 40% of condominium units in any building.
Indonesia's advantage lies in its relatively long ownership periods (up to 80 years for Hak Pakai) and the availability of mortgage financing for foreigners, which is more limited in countries like Vietnam. The Second Home Visa program also provides clearer pathways for property-related residency compared to some regional competitors.
Globally, Indonesia is more restrictive than countries like Portugal, Spain, or Dubai, which offer freehold ownership and residency programs for foreign property buyers. However, Indonesia's lower entry costs and higher rental yields often provide better investment returns despite the ownership limitations.
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.
Foreign buyers can successfully navigate Indonesia's apartment market by understanding the available ownership structures, meeting visa requirements, and working with independent legal professionals to ensure proper transaction completion.
The key to success lies in thorough due diligence, realistic budget planning for all costs and taxes, and choosing locations that align with both lifestyle preferences and investment objectives in this rapidly growing Southeast Asian market.
Sources
- Wise - Buying Property in Indonesia
- Invest in Asia - Can Foreigners Buy Property in Indonesia
- LinkedIn - Step by Step Guide for Foreigners
- Makarim - Foreigners Property Rights in Indonesia
- Emerhub - Buying Property in Indonesia
- BambooRoutes - Indonesia Real Estate for Foreigners
- Indonesia Real Estate - Property Buying Process
- ILA Global - Finding Notary and Lawyer in Indonesia
- Bali Exception - Financing Options for Foreigners
- Rumah123 - Foreign Mortgage in Indonesia
-Can Foreigners Buy Land in Indonesia? Complete Legal Guide
-How Foreigners Can Own Land in Indonesia: Legal Structures Explained
-Indonesia Property Price Forecasts: Market Trends and Predictions
-Indonesia Property Market Outlook: Investment Opportunities and Risks
-Indonesia Real Estate Market Analysis: Complete Investor Guide