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
Indonesia's property market offers diverse opportunities from luxury Bali villas to affordable Yogyakarta apartments.
Property prices vary dramatically across regions, with premium areas commanding 25-90 million IDR per square meter while budget-friendly cities offer options as low as 10 million IDR per square meter. The total purchase cost typically adds 8-12% in fees and taxes on top of the property's base price, making it crucial to budget beyond the advertised listing price.
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.
Property prices in Indonesia range from 10 million IDR/m² in Yogyakarta to 90 million IDR/m² for luxury properties in Bali.
Total purchase costs include an additional 8-12% in fees, taxes, and legal expenses beyond the base property price.
| Location | Price Range (IDR per m²) | 100m² Property Total Cost | Annual Rental Yield |
|---|---|---|---|
| Jakarta Premium | 43-67 million | 4.8-7.5 billion | 4-5% |
| Bali Luxury | 55-90 million | 6.2-10.1 billion | 10-20% |
| Bali Average | 55-66 million | 6.2-7.4 billion | 7-15% |
| Jakarta Average | 25-35 million | 2.8-3.9 billion | 5-6% |
| Yogyakarta | 10-20 million | 1.1-2.2 billion | 4-6% |
| Bandung | 15-25 million | 1.7-2.8 billion | 4-7% |
| Surabaya | 18-28 million | 2.0-3.1 billion | 5-7% |
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What type of property should you consider—house, apartment, villa, or land—and what's the difference between freehold and leasehold?
Indonesian property buyers can choose from houses, apartments, villas, townhouses, and undeveloped land.
Houses and villas offer more space and privacy, with prices ranging from 1.5 billion IDR for basic properties in secondary cities to over 15 billion IDR for luxury beachfront villas in Bali. Apartments provide easier maintenance and security, typically costing 25-67 million IDR per square meter in Jakarta's premium areas.
Freehold ownership grants perpetual rights but remains restricted for foreign buyers, who must use Indonesian nominees or establish a foreign investment company (PMA). Leasehold properties offer 25-35 year terms with renewal options and are more accessible to international buyers, though they typically cost 10-20% less than equivalent freehold properties.
Land purchases require careful legal structuring for foreigners, while apartments in mixed-use developments often come with leasehold arrangements that include management services and amenities.
It's something we develop in our Indonesia property pack.
Which Indonesian cities and regions offer the best value, and how do premium, emerging, and budget-friendly areas compare?
Jakarta and Bali dominate Indonesia's premium property market, while Yogyakarta offers the most affordable options among major cities.
Jakarta's central districts like Menteng and Kemang command premium prices of 43-67 million IDR per square meter for high-end apartments, with emerging areas like BSD City and Alam Sutera offering 20-30 million IDR per square meter. Bali's Seminyak, Canggu, and Ubud areas reach 55-90 million IDR per square meter for luxury properties.
Emerging markets include Bandung (15-25 million IDR/m²), Surabaya (18-28 million IDR/m²), and Makassar (12-22 million IDR/m²), which attract investors due to urban expansion and improving infrastructure. These cities offer capital appreciation potential of 8-12% annually.
Yogyakarta remains the most budget-friendly major city at 10-20 million IDR per square meter, making it ideal for first-time buyers or investors seeking affordable entry points. The city's student population and cultural significance provide steady rental demand.
Secondary coastal areas like Lombok and parts of East Java offer land prices starting from 2-5 million IDR per square meter for development projects.
What's the typical cost per square meter in different Indonesian regions for various property types?
| City/Region | Apartments (IDR/m²) | Houses/Villas (IDR/m²) | Land Only (IDR/m²) |
|---|---|---|---|
| Jakarta Premium | 43-67 million | 35-55 million | 8-15 million |
| Jakarta Average | 25-35 million | 20-30 million | 4-8 million |
| Bali Luxury | 60-90 million | 55-85 million | 12-25 million |
| Bali Average | 40-60 million | 35-55 million | 6-12 million |
| Bandung | 15-25 million | 12-22 million | 2-6 million |
| Surabaya | 18-28 million | 15-25 million | 3-7 million |
| Yogyakarta | 10-20 million | 8-18 million | 1-4 million |
What's the total purchase cost including all fees, taxes, and legal expenses?
The total purchase cost in Indonesia includes the property price plus an additional 8-12% in various fees and taxes.
Buyers pay a 5% acquisition duty (BPHTB - Bea Perolehan Hak atas Tanah dan Bangunan) calculated on the property's assessed value. Notary fees typically range from 0.5-1% of the purchase price, while legal fees add another 1-2% for due diligence and documentation.
Real estate agent commissions usually cost 2-3% of the purchase price, split between buyer and seller. Additional costs include property certificate transfers (0.1-0.3%), bank appraisal fees for financed purchases (2-5 million IDR), and various administrative stamps and permits.
For example, a 100-square-meter Jakarta apartment priced at 2.5 billion IDR would incur approximately 200-300 million IDR in total additional costs, bringing the all-in purchase price to 2.7-2.8 billion IDR.
Foreign buyers using nominee structures or PMA companies face additional legal setup costs of 50-150 million IDR depending on the complexity of the ownership arrangement.
What are the current mortgage rates and financing terms for locals and foreigners?
Indonesian mortgage rates for local buyers range from 7-11% annually, while foreigners typically face higher rates and stricter lending criteria.
Local buyers can secure mortgages with 10-20% down payments and terms up to 25 years. Major Indonesian banks like BCA, Mandiri, and BNI offer competitive rates starting around 7.5% for prime borrowers with steady income documentation.
Foreign buyers must provide 30-40% down payments and often face interest rates 2-3% higher than local rates. Maximum loan terms for expats typically cap at 20 years, and banks require substantial income verification from overseas sources.
Monthly payment examples for a 2 billion IDR property with 30% down at 9.5% interest over 20 years would be approximately 13.1 million IDR. Some developers offer in-house financing with more flexible terms but higher overall costs.
Alternative financing through peer-to-peer lending platforms or private financing companies may offer rates of 12-18% with more flexible qualification criteria but higher risk profiles.
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What ongoing costs should you budget for property ownership?
Indonesian property owners face annual costs typically ranging from 2-4% of the property's value for taxes, maintenance, and utilities.
Property tax (Pajak Bumi dan Bangunan - PBB) rates vary by location but generally range from 0.1-0.3% of assessed value annually. Jakarta properties often face higher assessments, resulting in taxes of 5-15 million IDR annually for typical apartments.
Maintenance and management fees for condominiums range from 15,000-40,000 IDR per square meter monthly, covering security, cleaning, and facility upkeep. A 100-square-meter apartment might incur 1.5-4 million IDR monthly in management fees.
Utility costs including electricity, water, and internet typically run 1-2.5 million IDR monthly for average usage. Property insurance costs approximately 0.1-0.2% of property value annually, or 2-4 million IDR for a mid-range property.
Additional costs may include periodic maintenance reserves, parking fees in some developments, and local community fees (RT/RW) of 50,000-200,000 IDR monthly.
What factors matter most for choosing a property to live in?
1. **Location and Transportation Access** - Properties near TransJakarta busways, MRT stations, or major highways command premium prices but offer significant lifestyle benefits and better resale value.2. **Security and Community Features** - Gated communities and buildings with 24-hour security, CCTV systems, and controlled access provide peace of mind, especially important for foreign residents.3. **Infrastructure and Utilities** - Reliable electricity, water supply, high-speed internet, and proper drainage systems are essential, particularly in developing areas prone to flooding.4. **Proximity to International Schools and Healthcare** - Expat families prioritize locations near quality international schools and hospitals, with properties in these areas maintaining stronger values.5. **Climate and Environmental Considerations** - Elevation, air quality, noise levels, and natural disaster risks (flooding, earthquakes) significantly impact livability and long-term property values.6. **Cultural and Recreational Amenities** - Access to shopping malls, restaurants, cultural sites, and recreational facilities enhances quality of life and attracts future buyers or tenants.What rental income can you expect from short-term versus long-term strategies?
Short-term rental strategies in Indonesia's tourist areas significantly outperform long-term leasing, particularly in Bali and Jakarta's premium districts.
Bali's short-term rental market generates 10-20% annual yields for well-located villas, with daily rates ranging from $80-300 depending on location and property quality. Seminyak and Canggu properties achieve the highest occupancy rates of 70-85% during peak seasons.
Jakarta's serviced apartment market offers 7-12% yields for short-term rentals targeting business travelers, with monthly rates of 25-50 million IDR for furnished one-bedroom units. Long-term residential leases in Jakarta typically yield 4-6% annually.
Yogyakarta's student accommodation market provides steady 6-8% yields through long-term rentals, while short-term rentals near cultural attractions can achieve 8-12% with proper management.
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 capital gains can you expect if you plan to resell the property later?
Indonesian property capital gains vary significantly by location and market segment, with Bali luxury properties showing the strongest appreciation over recent years.
Bali's premium villa market delivered 10-12% capital gains in the past year, with beachfront properties in Seminyak and Canggu seeing values increase from 6-8 billion IDR to 7-9 billion IDR for comparable units. Five-year appreciation rates in these areas reached 45-65% total returns.
Jakarta's residential market shows more modest gains of 1-3% annually for established areas, though emerging districts like BSD City and PIK area achieved 5-8% growth. Premium Jakarta apartments purchased in 2019 for 4 billion IDR now sell for 4.2-4.5 billion IDR.
Yogyakarta surprised investors with 8.9% price growth in the past year, driven by infrastructure improvements and university expansion. Properties that cost 1.2 billion IDR in 2020 now trade for 1.8-2.1 billion IDR.
Emerging markets like Bandung and Surabaya offer higher growth potential but with increased volatility, showing 6-15% annual appreciation in developing neighborhoods.
What are example purchase prices across different market segments?
| Market Segment | Example Property | Total Purchase Price (IDR) | Monthly Costs (IDR) |
|---|---|---|---|
| Jakarta Luxury | 150m² Kemang Apartment | 7.5-10 billion | 4.5-6 million |
| Jakarta Mid-Range | 80m² BSD City House | 2.2-2.8 billion | 2-3 million |
| Bali Premium | 200m² Seminyak Villa | 12-18 billion | 8-12 million |
| Bali Mid-Range | 120m² Sanur Townhouse | 4.5-6.5 billion | 3.5-5 million |
| Yogyakarta Entry | 90m² City Center Apartment | 1.1-1.6 billion | 1.2-1.8 million |
| Bandung Emerging | 100m² Suburban House | 1.8-2.5 billion | 1.5-2.2 million |
| Surabaya Growth | 110m² Modern Apartment | 2.4-3.2 billion | 2.2-3 million |
How have Indonesian property prices changed recently compared to historical trends?
Indonesian property prices experienced significant growth over the past five years, with regional variations showing different trajectories based on economic development and tourism recovery.
Compared to 2019 levels, Bali properties increased 35-50% on average, with luxury segments showing even higher gains. Jakarta's residential market grew 15-25% over the same period, while emerging cities like Bandung and Surabaya saw 25-40% appreciation.
The past year showed accelerated growth as Indonesia's economy recovered from pandemic impacts. Bali led with 7% average price increases, driven by returning international tourism and remote work trends. Jakarta's growth moderated to 2-4% as office demand stabilized.
Yogyakarta emerged as a surprise performer with 8.9% annual growth, benefiting from government infrastructure investments and educational sector expansion. This represents a significant acceleration from the city's historical 3-5% annual appreciation.
Regional price disparities have widened, with premium markets in Bali and Jakarta pulling ahead of secondary cities, though this gap may narrow as investors seek value opportunities in emerging markets.
What's the forecast for Indonesian property prices over the next 1, 5, and 10 years?
Indonesian property market forecasts indicate continued growth with regional variations, though at more moderate rates than recent peaks.
Next 12 months: Property prices are expected to grow 4-7% nationally, with Bali maintaining leadership at 6-9% due to tourism recovery and international buyer demand. Jakarta residential prices should increase 3-5% supported by infrastructure improvements and economic stability.
5-year outlook: Cumulative growth of 25-40% appears likely across major markets, with emerging cities potentially outperforming established areas. Infrastructure projects like the new capital city development may shift regional dynamics significantly.
10-year projection: Market maturation suggests annual growth rates of 5-8% compounded, still attractive compared to developed markets but slower than the 8-12% historical averages. Sustainability requirements and climate considerations will increasingly influence property values.
Compared to regional peers, Indonesian real estate remains competitively priced with higher yield potential than Singapore or Hong Kong, though political stability and regulatory consistency will determine long-term performance.
It's something we develop in our Indonesia property pack.
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.
Indonesian property prices vary dramatically by region and ownership type, with total purchase costs requiring 8-12% additional budget beyond advertised prices.
As of September 2025, the market shows strong regional performance differences, with Bali leading appreciation at 7% annually while Jakarta shows more modest 2-4% growth rates.