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 allows foreigners to buy residential property, but the rules are different from what locals enjoy, and knowing them can save you from costly mistakes.
We constantly update this blog post to reflect the latest regulations and market conditions in Indonesia.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Indonesia.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
Do foreigners have the same rights as locals in Indonesia right now?
Can foreigners legally buy residential property in Indonesia in 2026?
As of early 2026, foreigners can legally purchase residential property in Indonesia, but they must hold valid immigration documents and can only obtain specific types of land rights that differ from what Indonesian citizens receive.
Foreigners in Indonesia are legally allowed to purchase houses and apartments, provided these properties sit on land with a status that permits foreign ownership, such as Hak Pakai (Right to Use) rather than Hak Milik (freehold).
The modern legal framework for foreign property ownership in Indonesia comes from Government Regulation PP No. 18/2021 and its implementing rules, which set out clear eligibility requirements and property categories.
This means the building you want to buy might look perfect, but what really matters is the underlying land title and whether it can be legally registered in your name as a foreigner.
We cover all these things in length in our pack about the property market in Indonesia.
Do foreigners have the exact same ownership rights as locals in Indonesia in 2026?
As of early 2026, foreigners in Indonesia do not have the same ownership rights as locals because Indonesian law reserves the strongest land title (Hak Milik) exclusively for Indonesian citizens.
The single most significant difference is that Indonesians can hold Hak Milik, which is permanent freehold ownership of land, while foreigners are limited to Hak Pakai (Right to Use) or similar time-limited rights that must be renewed.
However, both foreigners and locals share equal rights when it comes to registering their property at the land office, accessing courts to resolve disputes, and transferring or selling their property to eligible buyers.
Are there any foreigner-only restrictions in Indonesia in 2026?
As of early 2026, there are three main foreigner-only restrictions in Indonesia: limits on the type of land title you can hold, requirements to have valid immigration documents, and conditions about which properties qualify for foreign ownership.
The most impactful restriction foreigners encounter is the title type limitation, which means even if you find your dream property, it may not be registrable in your name if the underlying land is Hak Milik rather than a status that can be converted to Hak Pakai.
The legal basis for these restrictions comes from Indonesia's Basic Agrarian Law of 1960, which established that the strongest land ownership rights are reserved for Indonesian citizens to protect national land resources.
The most common legal workaround foreigners use is purchasing property that already sits on Hak Pakai land or buying apartments in developments specifically structured for foreign ownership under PP No. 18/2021.
Can foreigners buy property freely anywhere in Indonesia, or only specific areas in 2026?
As of early 2026, Indonesia does not formally designate "foreigner zones" versus "non-foreigner zones," so you can technically buy property anywhere the land title and zoning allow the type of right you need as a foreigner.
The practical limitation is that certain rural areas, customary (adat) land regions, and properties with unclear documentation chains are effectively off-limits because the local land office may refuse to register foreign ownership there.
This happens because Indonesia's land registration system requires clean title history and appropriate land status, which is harder to find in less developed or customary land areas.
The most popular areas where foreigners commonly purchase property in Indonesia include Bali (especially Canggu, Seminyak, Ubud, and Sanur), Jakarta (Kemang, Pondok Indah, Menteng), Lombok (Kuta and Mandalika), and Batam (Nagoya), where compliant structures and experienced professionals make the process smoother.
Can foreigners own property 100% under their own name in Indonesia in 2026?
As of early 2026, foreigners in Indonesia can hold property 100% under their own name when they register the appropriate right (typically Hak Pakai for residential property) and meet the immigration document requirements.
Foreigners can register houses on Hak Pakai land and apartments in qualifying developments fully under their personal name, without needing a local partner or nominee arrangement.
The registration process requires you to present valid immigration documents (such as a visa, passport, or stay permit), complete the transaction through a notary (PPAT), and register the right at the local land office (Badan Pertanahan Nasional), which then issues a certificate in your name.
Is freehold ownership possible for foreigners in Indonesia right now in 2026?
As of early 2026, freehold land ownership (Hak Milik) is not available to foreigners in Indonesia because the Basic Agrarian Law reserves this strongest title type exclusively for Indonesian citizens.
The key difference is that Hak Milik is permanent and inheritable without time limits, while Hak Pakai (the main option for foreigners) is granted for a set period (typically 30 years, extendable) and must be renewed, which adds ongoing administrative requirements.
Because freehold is not available, the main alternative foreigners use is Hak Pakai for houses on land or strata title (Hak Milik atas Satuan Rumah Susun) for apartments in compliant developments, both of which allow legal ownership and registration in your name.
Can foreigners buy land in Indonesia in 2026?
As of early 2026, foreigners in Indonesia cannot buy land outright with full freehold title (Hak Milik), but they can obtain a Hak Pakai (Right to Use) over residential land that allows them to build and control a home.
Foreigners are generally prohibited from holding agricultural land and most rural land types, but residential land in urban areas and designated developments can be held under Hak Pakai when the land status permits conversion.
The most common legal structure foreigners use is purchasing property where the land already has Hak Pakai status or where the seller converts Hak Milik to Hak Pakai as part of the transaction, allowing the foreigner to register the land right in their name.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Does my nationality or residency status change anything in Indonesia?
Does my nationality change what I can buy in Indonesia right now in 2026?
As of early 2026, your specific nationality generally does not change what you can buy in Indonesia because the law draws the main line between "Indonesian citizen" and "non-Indonesian citizen" rather than distinguishing between different foreign passports.
Indonesia does not maintain a public list of banned nationalities for property purchases, so buyers from virtually any country face the same legal framework and title restrictions.
There are no bilateral property agreements that give specific nationalities preferential treatment for ownership rights, though some countries' citizens may find practical advantages in banking relationships or professional networks.
Do EU/US/UK citizens get easier property access in Indonesia?
EU, US, and UK citizens do not receive any formal legal advantage over other foreigners when buying property in Indonesia because the country's property laws treat all non-citizens equally.
EU citizens have no special property privileges in Indonesia, though they may benefit from stronger consular support and easier access to international legal and financial advisors familiar with European standards.
US and UK citizens similarly have no preferential ownership rights, but they often find it easier to document income for mortgage applications and to work with international banks that have presence in Indonesia.
If you're American, we have a dedicated blog article about US citizens buying property in Indonesia.
Can I buy property in Indonesia without local residency?
Non-residents and tourist-visa holders can legally purchase property in Indonesia as long as they have valid immigration documents, though their options become more limited and the process more scrutinized compared to residents.
Residents with longer-term visas (such as KITAS or KITAP) generally have smoother transactions because banks, notaries, and land offices are more comfortable processing their applications and verifying their ongoing presence in the country.
Tourist-visa holders looking to buy must still provide valid passport and visa documentation, but they should expect heavier due diligence, longer processing times, and near-zero chances of obtaining a local mortgage without resident status.
Please note that we give you all the details you need about the different pathways to get residency and citizenship in Indonesia here.
Buying real estate in Indonesia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What are the biggest legal grey areas for foreigners in Indonesia?
What are the biggest legal grey zones for foreigners in Indonesia in 2026?
As of early 2026, the three biggest legal grey zones for foreign property buyers in Indonesia are misleading "freehold" marketing that does not match what foreigners can actually register, nominee arrangements where someone else holds title on your behalf, and properties on customary (adat) land with weak documentation.
The single most risky grey zone is the nominee arrangement, where a local friend or partner holds Hak Milik title "for you," because if the relationship breaks down or the nominee dies, the law recognizes them (not you) as the owner.
The best precaution you can take is to verify the land status and title type before signing anything, work only with properties that can be legally registered in your name under Hak Pakai or qualifying strata title, and hire an independent lawyer to conduct thorough due diligence.
We have built our property pack about Indonesia with the intention to clarify all these things.
Can foreigners safely buy property using a local nominee in Indonesia?
Nominee arrangements in Indonesia carry high legal risk because the person whose name appears on the title certificate is the legal owner in the eyes of the state, regardless of any private agreement you may have signed.
The main risk of using a local nominee who is not your spouse is that if they face financial trouble, die, or simply decide to keep the property, you will be fighting from a weak position since Indonesia's land registry recognizes their ownership, not yours.
Buying through a local spouse can reduce some friction, but it creates its own risks around marital property rules and inheritance disputes, especially if you do not have a prenuptial agreement that clearly addresses property ownership.
Buying through a locally registered company (PT PMA) is a more structured option that some foreigners use, but it increases complexity with tax reporting, governance requirements, and ongoing compliance, and it still routes your ownership through Indonesia's land rights framework.
What happens if a foreigner dies owning property in Indonesia?
When a foreigner dies owning property in Indonesia, their heirs can generally inherit the property, but the outcome depends on whether the heirs are eligible to hold the same type of title under Indonesian law.
Foreign heirs must typically provide a death certificate, proof of inheritance (such as a will or court order from their home country, often requiring legalization), and their own immigration documents to transfer the property into their name.
If the heir is also a foreigner and eligible, they can keep the property under the same Hak Pakai structure, but if they are not eligible or do not want to maintain Indonesian immigration status, they must sell the property within a set timeframe.
The most common inheritance complication is when a non-eligible heir (such as someone without valid immigration documents) inherits a right they cannot legally keep, forcing a rushed sale or transfer, so having a clear will and estate plan is the best way to avoid this situation.
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 foreigners realistically get a mortgage in Indonesia in 2026?
Do banks give mortgages to foreigners in Indonesia in 2026?
As of early 2026, Indonesian banks do offer mortgages to foreigners, but approval rates are selective, with foreign residents who have stable, documentable income facing roughly 40% to 60% approval chances, while non-residents on tourist visas have less than 10% chance of approval, and typical loan amounts range from 500 million to 5 billion Indonesian Rupiah (around 30,000 to 300,000 USD or 28,000 to 280,000 EUR).
The main eligibility requirements banks impose on foreign mortgage applicants in Indonesia include proof of valid immigration status (preferably KITAS or KITAP), documented income from a verifiable employer or business, clean banking history, and often a higher down payment than locals must provide.
Are mortgage approvals harder for non-residents in Indonesia in 2026?
As of early 2026, mortgage approvals in Indonesia are significantly harder for non-residents compared to residents because banks face higher enforcement risk if you leave the country and greater difficulty verifying your income and creditworthiness.
Non-residents in Indonesia typically face loan-to-value ratios around 50% to 60% (meaning 40% to 50% down payment required, or roughly 400 million to 2.5 billion IDR / 24,000 to 150,000 USD / 22,000 to 140,000 EUR on a typical property), while residents may qualify for 70% to 80% LTV with down payments of 20% to 30%.
Non-residents must also provide additional documentation that residents do not need, including proof of income from abroad (often requiring notarization and translation), a local Indonesian bank account with transaction history, and sometimes a guarantor or larger cash reserve.
We have a whole document dedicated to mortgages for foreigners in our Indonesia real estate pack.
Get fresh and reliable information about the market in Indonesia
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Are foreigners protected by the law in Indonesia during disputes?
Are foreigners legally protected like locals in Indonesia right now?
Foreigners in Indonesia have the legal right to access courts, hire lawyers, and pursue property disputes through the judicial system on the same formal basis as Indonesian citizens.
Both foreigners and locals share equal rights to file lawsuits, present evidence, appeal decisions, and enforce judgments through Indonesia's court hierarchy, which runs from district courts up to the Supreme Court.
The main protection gap foreigners face is not in the law itself but in practical factors like language barriers, unfamiliarity with local procedures, uneven documentation practices across regions, and sometimes longer timelines to resolve cases.
The most important legal safeguard a foreigner should put in place before buying property in Indonesia is thorough due diligence on the title, conducted by an independent lawyer, combined with properly notarized contracts that clearly document the transaction and your rights.
Do courts treat foreigners fairly in property disputes in Indonesia right now?
Indonesian courts do not formally discriminate against foreigners, but independent benchmarks like the World Justice Project show that Indonesia faces rule-of-law challenges compared to top global performers, meaning outcomes can depend heavily on the strength of your documentation rather than your nationality.
Property disputes in Indonesia typically take 1 to 3 years to resolve through the courts, with costs ranging from 50 million to 500 million IDR (roughly 3,000 to 30,000 USD or 2,800 to 28,000 EUR) depending on complexity, lawyer fees, and whether appeals are involved.
The most common type of property dispute foreigners bring to court involves title conflicts, often arising from nominee arrangements gone wrong, boundary disputes, or sellers who misrepresented the land status.
Alternative dispute resolution options for foreigners include mediation (often encouraged by courts before trial), arbitration clauses in contracts, and negotiated settlements, which are usually faster and cheaper than full litigation.
We cover all these things in our list of risks and pitfalls people face when buying property in Indonesia.
We made this infographic to show you how property prices in Indonesia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What do foreigners say after buying in Indonesia in 2026?
Do foreigners feel treated differently during buying in Indonesia right now?
Based on buyer surveys and expat community feedback, roughly 60% to 70% of foreigners report feeling treated differently during the property buying process in Indonesia, though experiences vary widely by location and the professionals involved.
The most commonly reported way foreigners feel treated differently is encountering more paperwork, longer timelines, and a sense that sellers or agents assume they do not understand local rules, which can lead to less transparency about pricing and land status.
On the positive side, many foreigners report that working with experienced agents in expat-heavy areas like Canggu, Seminyak, or Kemang makes the process smoother, with professionals who understand foreign buyer needs and can guide them through compliant structures.
Find more real-life feedbacks in our our pack covering the property buying process in Indonesia.
Do foreigners overpay compared to locals in Indonesia in 2026?
As of early 2026, foreigners in Indonesia typically pay 10% to 25% more than locals for similar properties, which translates to premiums of roughly 100 million to 500 million IDR (6,000 to 30,000 USD or 5,500 to 28,000 EUR) on mid-range homes in popular areas.
The main reason foreigners overpay in Indonesia is not simply being quoted higher prices, but rather that they are often limited to a narrower pool of "clean and compliant" properties with proper Hak Pakai status, which commands a premium over the broader market where locals can buy Hak Milik properties with less documentation scrutiny.
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Buying a property over there? We have reviewed all the documents you need to know. Stay out of trouble - grab our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Indonesia, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why We Trust It | How We Used It |
|---|---|---|
| JDIH BPK RI (PP No. 18/2021) | Indonesia's official legal database for government regulations. | We used it as the backbone for what foreigners can legally own. We cross-checked key points against secondary legal sources to reduce misinterpretation. |
| Minister of ATR/BPN Regulation No. 18/2021 | Official implementing rules for foreign property ownership. | We used it to translate the law into practical guidance on title types. We relied on it especially for land status requirements. |
| FAOLEX (Basic Agrarian Law, Act No. 5 of 1960) | Respected international legal repository hosting foundational law. | We used it to anchor the principle that Hak Milik is reserved for citizens. We referenced it for inheritance and freehold explanations. |
| Bank Indonesia (PBI 20/8/PBI/2018) | Central bank and official macroprudential regulator for lending. | We used it to explain LTV policy and down payment requirements. We translated it into the reality foreigners face with stricter bank rules. |
| Bank Indonesia Property Price Survey (Q3 2025) | Primary-source report with official methodology. | We used it to describe the housing market context in early 2026. We also used financing statistics to explain mortgage relevance. |
| BPS Statistics Indonesia (Property Price Index 2025) | Indonesia's official statistics agency with standardized indexes. | We used it to triangulate price data beyond big-city anecdotes. We kept our market context grounded in official statistics. |
| Directorate General of Immigration | Official government authority for visas and stay permits. | We used it to anchor immigration document requirements. We referenced it to connect property eligibility to the competent agency. |
| Indonesia eVisa Portal | Official government platform for visa issuance. | We used it to support practical guidance on immigration documents. We used it as a reality-check against informal market claims. |
| OJK (Financial Services Authority) | Statutory regulator overseeing banks and financial services. | We used it to frame who regulates lenders. We kept the mortgage discussion tied to the right institutions. |
| Supreme Court of Indonesia | Official website of Indonesia's highest court. | We used it to ground how disputes escalate through the judiciary. We translated that into plain-language dispute guidance. |
| World Justice Project (Rule of Law Index) | Recognized international NGO with transparent methodology. | We used it to add an external view of rule-of-law conditions. We used it only as context, not as a substitute for black-letter law. |
| World Bank (Governance Indicators) | Long-running, widely cited international governance dataset. | We used it to triangulate institutional environment analysis. We used it cautiously for high-level context only. |
We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.