How to buy a house in Bandung?

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.

Is it actually possible for foreigners to buy property in Bandung, and what are the restrictions on what they can and can't buy?

Foreigners cannot directly own land in Bandung under their own names, but several legal pathways allow property acquisition.

The most common methods include establishing a PT PMA (foreign-owned Indonesian company), obtaining Hak Pakai (Right to Use) permits for residential purposes, or entering long-term lease agreements. Direct freehold ownership (Hak Milik) remains exclusively reserved for Indonesian citizens as of September 2025.

A PT PMA can hold Hak Guna Bangunan (Right to Build) or Hak Pakai titles, providing the most secure ownership structure for foreigners. Hak Pakai permits allow residential property ownership for up to 30 years with renewal options. Long-term registered lease agreements offer another viable option, though with different legal protections.

Nominee structures using local names are technically illegal and carry significant risks, including complete loss of property control and legal disputes. The Indonesian government actively discourages these arrangements and they provide no real legal protection.

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

What is the step-by-step process to purchase a house in Bandung from start to finish?

The property purchase process in Bandung follows a structured six-step procedure overseen by licensed notaries and government agencies.

Step 1 involves establishing a PT PMA if you choose company ownership, which typically takes 2-4 weeks. Step 2 requires finding suitable property and verifying the legal title through BPN (National Land Office) records. Step 3 involves comprehensive due diligence, including engaging a PPAT (licensed notary) for legal paperwork verification.

Step 4 requires drafting and signing the Sale & Purchase Agreement before the PPAT notary. Step 5 involves settling all taxes and fees, including BPHTB (Land and Building Acquisition Fee), notary fees, registration charges, and applicable VAT. Step 6 completes with property certificate registration under your PT PMA or personal name with Hak Pakai at the BPN office.

Each step requires specific documentation and cannot be skipped without legal consequences. The PPAT notary plays a crucial role throughout, ensuring compliance with Indonesian property law and proper registration procedures.

What official documents are mandatory, and which ones are optional but helpful to have?

Mandatory documents include a valid passport with 36+ months validity, KITAS/KITAP residence permit, Indonesian Tax ID (NPWP), and building permit (IMB/PBG).

Additional required paperwork includes the property land certificate/title, Akta Jual Beli (Sale & Purchase Agreement), proof of tax payments (SPPT PBB, BPHTB), and company establishment documents if purchasing through PT PMA. These documents must be originals or certified copies accepted by Indonesian authorities.

Optional but helpful documents include marriage certificates for co-ownership situations, notary-verified financial capability statements, bank statements, payslips, and Amendment Deeds for PT PMA modifications. Having these prepared can significantly speed up the process and demonstrate financial readiness to sellers and authorities.

All foreign documents require apostille certification and official Indonesian translation through certified translators. Missing any mandatory document will halt the process completely until obtained.

Can you buy a property in Bandung without physically being in Indonesia, and if so, how?

Yes, remote property purchase in Bandung is legally possible through proper legal representation and digital processes.

The key mechanism involves appointing a trustworthy local legal representative through a notarized Power of Attorney document. This representative can handle property viewings, negotiations, and most procedural requirements on your behalf. Your PPAT notary can also be authorized to carry out required signings and registrations under this arrangement.

Some due diligence phases and key document signings can be handled digitally or via international courier services, particularly when working with reputable agencies that specialize in foreign buyer transactions. Video property tours, digital document review, and remote bank transfers are increasingly accepted practices.

However, certain steps like initial KITAS applications or PT PMA establishment may still require your physical presence in Indonesia, though these can often be scheduled efficiently during a single visit.

How long does the entire buying process usually take, from first viewing to final ownership?

The complete property purchase process in Bandung typically takes 2-3 months for straightforward transactions, though complex cases can extend to 4-5 months.

The timeline breaks down as follows: property search and due diligence (2-4 weeks), document preparation and verification (2-3 weeks), Sale & Purchase Agreement execution (1 week), tax and fee settlement (1-2 weeks), and final certificate registration (2-4 weeks). PT PMA establishment, if required, adds an additional 2-4 weeks to the beginning of this timeline.

Factors that can extend the timeline include incomplete documentation, complex title histories, financing arrangements, multiple property ownership changes, or bureaucratic delays at BPN offices. Having all documents prepared in advance and working with experienced professionals significantly reduces these delays.

Rush processing is possible for urgent cases but typically involves additional fees and may still face government processing limitations that cannot be expedited.

What taxes, fees, and other costs should a buyer expect, and can you break them down clearly?

Cost Type	Percentage/Amount	Who Pays
BPHTB (Land & Building Acquisition Fee)	5% of property value	Buyer
Notary/PPAT fees	1-2% of transaction value	Usually buyer
Title transfer & registration	IDR 1-5 million+	Buyer
VAT (new property, if applicable)	10% (occasionally levied)	Buyer or developer
Legal review/due diligence	IDR 5-20 million	Buyer
Agent's commission	2-5% of property value	Seller or buyer
PT PMA establishment (if needed)	IDR 15-30 million	Buyer

Is it possible to pay fully in cash, and are there any limitations or rules around that?

Cash payment for property purchases in Bandung is legally permitted with no strict prohibitions on full cash transactions.

However, large cash transfers face enhanced due diligence requirements under Indonesian anti-money laundering laws. All payments must be properly documented and processed through the PPAT notary to ensure legal compliance and avoid future disputes. Banks may require additional documentation for cash transfers exceeding certain thresholds.

Cash payments should be made through proper banking channels with full transaction records rather than physical cash delivery. This provides legal protection and satisfies regulatory requirements while maintaining transaction transparency.

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

Can foreigners get a mortgage in Indonesia, what are the typical rates and conditions, and any tips to secure one?

Mortgage availability for foreigners in Indonesia is extremely limited and requires valid residence permits (KITAS/KITAP) or PT PMA ownership structures.

Indonesian banks rarely grant mortgages to foreigners without strong local ties, requiring extensive documentation including proof of income, employment history, and established banking relationships. Interest rates typically range from 8-10% per annum with shorter loan terms (10-15 years) and substantial down payment requirements exceeding 30-40% of property value.

Tips for securing foreign mortgages include building relationships with local branches of international banks, using trusted mortgage brokers familiar with foreign applications, maintaining Indonesian bank accounts for several months before applying, and considering banks that specialize in expatriate services. Some developers offer financing arrangements that may be more accessible than traditional bank mortgages.

Alternative financing through offshore lenders or developer payment plans may provide more viable options for foreign buyers than conventional Indonesian bank mortgages.

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.

Are real estate agents in Bandung generally reliable, and how can you find a trustworthy one?

The Bandung real estate market includes both reputable and unreliable agents, making careful selection crucial for successful transactions.

Trustworthy agents typically associate with established international agencies or licensed Indonesian firms with verifiable track records. Look for agents who provide client references, have completed similar foreign buyer transactions, maintain proper licensing, and demonstrate clear knowledge of foreign ownership regulations.

Red flags include agents proposing nominee arrangements, offering unusually low prices without explanation, pressuring quick decisions, lacking proper credentials, or suggesting shortcuts around legal requirements. Reliable agents will insist on proper legal procedures and connect you with qualified PPAT notaries.

Research agents through online reviews, expat community recommendations, embassy commercial sections, and established real estate firm networks. Interview multiple agents and verify their recent transaction history before making commitments.

Will the Indonesian legal system actually protect you if there's a dispute, and what safeguards exist?

The Indonesian legal system provides enforceable property rights protection, particularly for properly registered Hak Pakai and PT PMA ownership structures.

All transactions must be processed through certified PPAT notaries with oversight by BPN (National Land Office), creating multiple verification layers and legal documentation. Courts generally uphold lawfully registered property rights when proper procedures have been followed and documentation is complete.

Safeguards include mandatory notary involvement, government registration requirements, title verification systems, and established dispute resolution procedures through Indonesian courts. Property insurance and legal insurance policies provide additional protection layers for foreign buyers.

The key to protection lies in following proper legal procedures, maintaining complete documentation, using qualified professionals, and avoiding shortcuts or illegal arrangements that void legal protections.

What are the most common mistakes or pitfalls foreigners make when buying property there, and how can they be avoided?

The most frequent and costly mistake involves using nominee structures, which carry high legal risks and potential complete property loss.

1. **Using nominee arrangements** - These are illegal and provide no legal protection. Always use legitimate PT PMA or Hak Pakai structures.2. **Failing to verify property titles** - Always confirm legitimacy through BPN records and hire qualified professionals for title searches.3. **Skipping PPAT notary involvement** - This makes transactions unenforceable. Never proceed without proper notary oversight.4. **Inadequate due diligence** - Thoroughly vet all parties, documents, and legal requirements before proceeding.5. **Overlooking tax obligations** - Understand all fees and taxes upfront to avoid unexpected costs and legal issues.6. **Choosing unqualified agents** - Work only with licensed, experienced professionals who understand foreign buyer regulations.7. **Rushing the process** - Take time for proper verification and legal compliance rather than rushing to close deals.

Avoid these pitfalls by hiring reputable professionals, conducting thorough due diligence, following all legal frameworks strictly, and never taking shortcuts that seem too good to be true.

Does buying property in Bandung offer any path to residency or citizenship, and where do foreigners tend to buy the most?

Property purchase in Bandung does not automatically grant residency or citizenship rights in Indonesia as of September 2025.

However, establishing a PT PMA for property ownership can facilitate KITAS (temporary stay permit) applications for business investors, as the company structure demonstrates business activity and investment in Indonesia. This business visa requires ongoing compliance with investment and operational requirements beyond just property ownership.

Permanent residency or citizenship requires separate applications through Indonesia's investment or naturalization programs, with specific minimum investment thresholds and residency requirements that exceed simple property ownership. Property purchase alone is insufficient for these immigration benefits.

Foreign buyers in Bandung typically concentrate in areas with good infrastructure and international amenities: Dago, Setiabudi, and the northern hills districts. These areas attract expatriate families due to proximity to international schools, modern shopping centers, reliable utilities, and established expatriate communities.

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.

Sources

1. Expat.or.id - Ownership Rights
2. Invest in Asia - Foreign Property Purchase
3. Own Property Abroad - Bandung Property Guide
4. 360 Business Law - Indonesian Property Law
5. Unissula Journal - Property Rights Analysis
6. DSG Pay - Foreign Property Purchase Guide
7. China Briefing - Nominee Structure Legal Implications
8. Ray White Indonesia - Foreign Buyer Guide
9. GrataNet - Legal Aspects of Real Estate Transactions
10. EmerHub - Property Purchase Guide Indonesia