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 property in Indonesia, but they cannot own freehold land, so understanding the legal structures is essential before making any purchase.
This article covers everything you need to know about foreign ownership rules, visas, the buying process, and costs in Indonesia as of January 2026.
We keep this blog post constantly updated with the latest regulations, price thresholds, and market data for 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.
Insights
- Foreigners in Indonesia can hold property rights for up to 80 years through Hak Pakai, but they must renew after the initial 30-year period, making it a time-bounded ownership rather than true freehold.
- Minimum purchase prices for foreigners in Indonesia vary dramatically by province, ranging from IDR 1 billion in some regions to IDR 10 billion for landed houses in Jakarta, which effectively prices many foreigners out of certain markets.
- The Second Home Visa in Indonesia requires proof of funds of at least IDR 2 billion (around $130,000), making it a viable pathway for property buyers who want long-term residence without traditional work permits.
- Rental yields in Indonesia reach up to 11% in Central Jakarta for one-bedroom apartments, outperforming many Southeast Asian markets, though Bali villas can achieve even higher returns through short-term rentals.
- Nominee arrangements, where an Indonesian citizen holds property on behalf of a foreigner, remain the most common legal pitfall in Indonesia, often resulting in total property loss when relationships deteriorate.
- Indonesia's annual property tax (PBB) sits at just 0.05% to 0.15% of market value, making it one of the lowest property tax burdens in the region compared to countries like Thailand or the Philippines.
- Mortgage rates for foreigners in Indonesia start with promotional rates of 4.5% to 7%, but jump to 10% to 12.5% after the fixed period ends, which significantly affects long-term affordability calculations.
- Only a handful of Indonesian banks, including Permata Bank, J Trust Bank, and Commonwealth Bank, actively offer mortgage products to foreigners, and most require KITAS or KITAP residency status.
Fact-checked and reviewed by our local expert
Daniel Rouquette 🇫🇷
CEO & Co-Founder at Villa Finder
What can I legally buy and truly own as a foreigner in Indonesia?
What property types can foreigners legally buy in Indonesia right now?
As of January 2026, foreigners in Indonesia can legally buy apartments and condominium units with strata titles, as well as landed houses, villas, and townhouses, but only under a registered Right to Use (Hak Pakai) title rather than full freehold ownership.
The single most important limitation for foreign buyers in Indonesia is that you cannot own the land itself, only the building and the right to use the land for a set period that can extend up to 80 years with renewals.
Indonesia also sets minimum purchase price thresholds that vary by province and property type, so in Jakarta a foreigner must spend at least IDR 5 billion (around $310,000) for an apartment and IDR 10 billion (around $620,000) for a landed house, while other regions like Bali require a minimum of IDR 2 billion to IDR 5 billion depending on the location.
These price floors mean that foreigners are effectively limited to the mid-to-high end of the Indonesian property market, which keeps entry-level housing reserved for local buyers.
Finally, please note that our pack about the property market in Indonesia is specifically tailored to foreigners.
Can I own land in my own name in Indonesia right now?
No, foreigners cannot own freehold land (Hak Milik) in Indonesia, as this right is constitutionally reserved exclusively for Indonesian citizens.
The main legal alternative is Hak Pakai (Right to Use), which is a registered land right that allows foreigners to use and occupy land for residential purposes for an initial 30 years, extendable by 20 years, and renewable for another 30 years, totaling up to 80 years of secure, registrable use.
Another option is Hak Sewa (leasehold), which is a contractual lease typically lasting 25 to 30 years with extension options, though this is not registered with the National Land Agency and relies entirely on private contract enforcement, making it less secure than Hak Pakai.
As of 2026, what other key foreign-ownership rules or limits should I know in Indonesia?
As of January 2026, Indonesia requires foreigners to hold a valid residence permit (KITAS or KITAP) or a Second Home Visa to register a Hak Pakai property in their name, which means short-term tourists generally cannot complete a registered property purchase.
There is no specific foreign quota for apartment purchases in Indonesia, but the property must be in an eligible building structure that allows strata-title registration for foreigners, and not all developments meet this requirement.
Foreigners must register their property through a licensed notary (PPAT) and the National Land Agency (BPN), which involves submitting passport copies, residence permit documentation, and paying applicable transfer taxes before the right is officially recorded.
The Omnibus Law on Job Creation (enacted in 2020) and its implementing regulation PP 18/2021 remain the governing framework, though enforcement and interpretation continue to evolve, so working with a local lawyer is essential for any 2026 purchase.
If you're interested, we go much more into details about the foreign ownership rights in Indonesia here.
What's the biggest ownership mistake foreigners make in Indonesia right now?
The single biggest ownership mistake foreigners make in Indonesia is entering into a nominee arrangement, where an Indonesian citizen holds the land title on the foreigner's behalf through side contracts, which is legally risky and can result in complete loss of the property if the relationship breaks down or the nominee refuses to transfer.
If you use a nominee and the arrangement fails, you have almost no legal recourse because Indonesian courts generally do not recognize or enforce agreements designed to circumvent the constitutional restriction on foreign land ownership, leaving you with nothing.
Other common pitfalls include buying a property that cannot be converted to Hak Pakai for foreigners, failing to verify the property meets minimum price thresholds, and signing leasehold contracts without proper notarization or legal review, all of which can leave foreign buyers exposed to financial loss or unenforceable rights.
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.
Which visa or residency status changes what I can do in Indonesia?
Do I need a specific visa to buy property in Indonesia right now?
To register a Hak Pakai property in your name in Indonesia as of January 2026, you generally need a valid residence permit (KITAS or KITAP) or a Second Home Visa, which means purchasing on a standard tourist visa is technically possible for signing contracts but impractical for completing the official registration.
The most common administrative barrier for foreigners without residency is the requirement to show proof of legal domicile in Indonesia, which banks and notaries use to verify your eligibility before processing any property transfer.
Having a local tax identification number (NPWP) is often required in practice, especially if you want to obtain a mortgage or properly report rental income, so most serious foreign buyers apply for one before starting the purchase process.
A typical document set for foreign buyers in Indonesia includes a valid passport, residence permit (KITAS, KITAP, or Second Home Visa), NPWP tax ID, and proof of funds, all of which must be presented to the notary (PPAT) during the signing of the sale deed.
Does buying property help me get residency and citizenship in Indonesia in 2026?
As of January 2026, buying property in Indonesia does not automatically grant you residency or citizenship, as there is no formal golden visa or citizenship-by-investment program tied directly to real estate purchases.
The closest pathway is the Second Home Visa, which allows foreigners to stay in Indonesia for up to 5 or 10 years, but eligibility is based on demonstrating funds of at least IDR 2 billion (around $130,000 or EUR 120,000) or owning a property certificate, not simply purchasing any property.
For permanent residency, foreigners typically need to have lived in Indonesia on consecutive temporary permits (KITAS) for several years, often through employment or marriage, rather than through property investment alone.
We give you all the details you need about the different pathways to get residency and citizenship in Indonesia here.
Can I legally rent out property on my visa in Indonesia right now?
Your visa status does not technically prevent you from earning rental income on a property you own in Indonesia, but if you are operating a rental business (especially short-term vacation rentals), you may need additional business licenses or need to structure the operation through a PT PMA company.
You do not need to physically live in Indonesia to collect rental income, and many foreign owners manage properties remotely through local agents who handle tenant relations, maintenance, and tax withholding on their behalf.
The key detail foreigners must know is that rental income from land and buildings is commonly subject to a 10% final tax in Indonesia, and if you are a non-resident for tax purposes, your local agent or tenant may be required to withhold and remit this tax directly to the Indonesian tax authorities.
We cover everything there is to know about buying and renting out in Indonesia here.
Get fresh and reliable information about the market in Indonesia
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
How does the buying process actually work step-by-step in Indonesia?
What are the exact steps to buy property in Indonesia right now?
The standard sequence in Indonesia is: choose a property that qualifies for foreign ownership, conduct due diligence on the title and zoning with a notary (PPAT), negotiate and sign a conditional sale agreement (PPJB), pay the deposit, settle all taxes and fees including BPHTB (buyer transfer duty), sign the final sale deed (AJB) before the PPAT, and register the title transfer with the National Land Agency (BPN).
You generally need to be physically present for the signing of the sale deed (AJB) at the PPAT office, though earlier stages and some post-closing registrations can be handled through a properly notarized power of attorney.
The deal typically becomes legally binding when both parties sign the conditional sale agreement (PPJB) and the buyer pays the agreed deposit, though full legal ownership only transfers upon registration with the BPN.
From accepted offer to final title registration, the process in Indonesia typically takes 2 to 4 months, depending on the complexity of the due diligence, the speed of government offices, and whether all parties have their documentation in order.
We have a document entirely dedicated to the whole buying process our pack about properties in Indonesia.
Is it mandatory to get a lawyer or a notary to buy a property in Indonesia right now?
A notary (PPAT) is functionally mandatory in Indonesia because the transfer and registration of land rights must be executed through formal deeds prepared by an authorized Land Deed Official, which is the PPAT's role.
The key difference is that the PPAT handles the official documentation, deed preparation, and registration with the land office, while a lawyer provides independent legal advice, reviews contracts for your interests, and ensures the deal structure protects you as a foreign buyer.
One essential item to include in your lawyer's scope is a thorough title search and verification that the property can legally be held under Hak Pakai by a foreigner, since not all properties marketed to foreigners actually qualify under Indonesian law.
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 checks should I run so I don't buy a problem property in Indonesia?
How do I verify title and ownership history in Indonesia right now?
The official authority to verify title and ownership in Indonesia is the National Land Agency (Badan Pertanahan Nasional or BPN), where your notary (PPAT) can request a title check to confirm the certificate details and registered ownership.
The key document to request is the original land certificate (Sertifikat Hak Atas Tanah), which shows the registered owner, the type of right (Hak Milik, Hak Pakai, etc.), the land boundaries, and any encumbrances recorded against the property.
A realistic look-back period for ownership history checks in Indonesia is 10 to 20 years, as this helps identify any patterns of disputed transfers, inheritance issues, or unresolved claims that could affect your purchase.
A clear red flag that should stop a purchase is discovering that the property has overlapping certificates, pending court cases, or unregistered heirs claiming ownership, any of which can take years to resolve and may result in you losing the property entirely.
You will find here the list of classic mistakes people make when buying a property in Indonesia.
How do I confirm there are no liens in Indonesia right now?
The standard way to confirm there are no liens or encumbrances in Indonesia is to have your notary (PPAT) conduct a title check at the BPN, which will reveal any registered mortgages (Hak Tanggungan) or other charges against the property.
The most common type of lien to specifically ask about is a bank mortgage (Hak Tanggungan), which remains attached to the property until officially released, meaning you could inherit the seller's debt if it is not cleared before transfer.
The best proof of lien status is a No Encumbrance Certificate (Surat Keterangan Bebas Beban) from the BPN, which confirms that no mortgages, liens, or legal claims are registered against the property at the time of your purchase.
How do I check zoning and permitted use in Indonesia right now?
The authority to check zoning and permitted use in Indonesia is the local government planning office (Dinas Tata Ruang), and under the Omnibus Law, spatial plans should now be uploaded to the OSS (Online Single Submission) system, making verification easier.
The key document that confirms zoning classification is the local spatial plan (Rencana Tata Ruang Wilayah or RTRW), which maps out whether land is designated for residential, commercial, agricultural, or other uses.
A common zoning pitfall for foreigners in Indonesia is purchasing a villa marketed for rental income without realizing the land is zoned strictly for residential use, which means operating it as a commercial vacation rental may require additional permits or be prohibited entirely.
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.
Can I get a mortgage as a foreigner in Indonesia, and on what terms?
Do banks lend to foreigners for homes in Indonesia in 2026?
As of January 2026, yes, some Indonesian banks do offer mortgages to foreigners, but availability is selective and typically requires you to hold a residence permit (KITAS or KITAP), have verifiable income or assets, and purchase an eligible property from approved developers.
Foreign borrowers in Indonesia typically see loan-to-value (LTV) ratios ranging from 50% to 70%, which is lower than what Indonesian citizens can access, meaning you will need a substantial down payment of 30% to 50% of the property value.
The most common eligibility requirement is holding a valid KITAS or KITAP, along with proof of stable income (often local Indonesian income or demonstrable offshore income) and a clear credit history, as banks are cautious about lending to non-residents without local ties.
You can also read our latest update about mortgage and interest rates in Indonesia.
Which banks are most foreigner-friendly in Indonesia in 2026?
As of January 2026, the banks most frequently cited as foreigner-friendly for mortgages in Indonesia are Permata Bank (with its Syariah IMBT product explicitly designed for foreigners), J Trust Bank (which publicly markets KPR products to expatriates), and Commonwealth Bank Indonesia (commonly referenced in expat mortgage discussions).
The key feature that makes these banks more foreigner-friendly is their willingness to accept foreign passport holders with KITAS/KITAP, their English-language support, and their established processes for evaluating offshore income rather than requiring purely local employment.
However, these banks generally still require some form of local residency, so non-residents without KITAS/KITAP will find it very difficult to secure financing and may need to consider all-cash purchases or developer payment plans instead.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Indonesia.
What mortgage rates are foreigners offered in Indonesia in 2026?
As of January 2026, foreigners in Indonesia can typically expect promotional or fixed-period mortgage rates of 4.5% to 7.0% per year for the first 1 to 5 years, but after this period ends, rates usually jump to floating rates in the range of 10% to 12.5% per year based on the bank's prime lending rate plus risk premium.
The difference between fixed and variable rates in Indonesia is significant: fixed-rate periods offer predictability but are typically short (1 to 5 years), while the variable rate that follows is tied to Bank Indonesia's benchmark and the bank's SBDK (base lending rate), which has hovered in the high single digits to low double digits in recent quarters.
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 will taxes, fees, and ongoing costs look like in Indonesia?
What are the total closing costs as a percent in Indonesia in 2026?
For foreign buyers in Indonesia in 2026, total closing costs typically range from 6% to 8% of the purchase price, covering all mandatory taxes, notary fees, and registration charges.
The realistic range depends on the property value and location, with simpler transactions at the lower end (around 6%) and more complex deals involving additional legal counsel or conversion of title types pushing toward 8% or slightly higher.
The main fee categories that make up closing costs in Indonesia include BPHTB (buyer's acquisition duty at 5% of the taxable value), notary/PPAT fees (around 1% to 2%), and administrative/registration fees (typically 0.5% to 1%), plus optional but recommended legal counsel fees.
The single biggest contributor to closing costs in Indonesia is BPHTB, the buyer's transfer duty, which is calculated at 5% of the property's taxable value (usually the higher of sale price or NJOP assessed value) minus a small non-taxable threshold that is often negligible for foreign-priced properties.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Indonesia.
What annual property tax should I budget in Indonesia in 2026?
As of January 2026, foreign owners in Indonesia should budget approximately 0.05% to 0.15% of market value per year for annual property tax (PBB), which works out to roughly IDR 2.5 million to IDR 7.5 million ($150 to $470, or EUR 140 to EUR 430) annually for a property valued at IDR 5 billion.
Indonesia's annual property tax (Pajak Bumi dan Bangunan or PBB) is assessed as a rate applied to the government-assessed value (NJOP), which is often lower than market value, making the effective tax burden relatively light compared to many Western countries.
How is rental income taxed for foreigners in Indonesia in 2026?
As of January 2026, rental income from land and buildings in Indonesia is commonly subject to a 10% final tax for individual owners, which means you pay 10% of gross rental income with no deductions for expenses.
The basic requirement is that either you or your tenant/agent must withhold and remit this 10% tax to the Indonesian tax authorities, and foreign owners managing properties remotely typically authorize a local agent to handle this withholding on their behalf.
What insurance is common and how much in Indonesia in 2026?
As of January 2026, foreign property owners in Indonesia should budget approximately 0.10% to 0.30% of the insured building value per year for standard home insurance, which translates to roughly IDR 2 million to IDR 7.5 million ($125 to $470, or EUR 115 to EUR 430) annually for a property insured at IDR 2.5 billion.
The most common type of property insurance in Indonesia is fire and allied perils coverage, which protects against fire, lightning, explosion, and related risks, with optional extensions available for earthquake, flood, and theft depending on the location and insurer.
The single biggest factor that affects insurance premiums in Indonesia is location hazard, particularly whether the property is in an earthquake-prone zone (like much of Java and Bali) or flood-prone area, as well as the construction type (wood versus concrete), which can significantly increase or decrease your premium.
Get the full checklist for your due diligence in Indonesia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 it's authoritative | How we used it |
|---|---|---|
| PP No. 18/2021 (BPK) | The central government's implementing regulation for land rights under the Job Creation framework. | We used it as our legal source of truth for what rights foreigners can hold. We cross-checked all summaries against this official text. |
| PP No. 18/2021 Official Translation | Government portal providing official translation reference for legal terms. | We used it to ensure plain English accuracy in describing property rights. We triangulated it with the Indonesian original. |
| Permen ATR/BPN No. 18/2021 | The ministerial regulation that operationalizes land-right procedures. | We used it to confirm the procedural layer of how rights get granted and registered. |
| Kepmen ATR/BPN 1241/2022 | The ministerial decree setting minimum purchase prices by province for foreigners. | We used it to provide concrete, location-specific price thresholds for foreign buyers. |
| Indonesia eVisa Portal | The government's official online visa platform. | We used it to ground visa eligibility requirements and avoid hearsay about immigration status. |
| Second Home Visa Circular | Official immigration office reposting of the Directorate General's guidance. | We used it to explain Second Home Visa requirements and eligibility criteria. |
| PP No. 34/2016 | Government regulation setting the final income tax framework for property transfers. | We used it to explain seller-side transfer tax and its impact on negotiations. |
| PwC Indonesia Tax Summaries | Major professional tax reference with regularly updated information. | We used it to state the 10% final tax treatment for rental income from land and buildings. |
| Bank Indonesia SBDK Data (Dec 2025) | Central bank release with recent base lending rate levels. | We used it to anchor realistic 2026 floating-rate ranges for mortgages. |
| Permata Bank Product Disclosure | Official bank document explicitly mentioning WNA (foreigner) mortgage terms. | We used it to prove bank programs exist for foreigners and cite specific constraints. |
| Zurich Indonesia | Major insurer's official product page in Indonesia. | We used it to confirm common home insurance coverage types available to property owners. |
| Allianz Indonesia | Major insurer's official home insurance product page. | We used it as a cross-check for insurance availability and typical coverage in Indonesia. |
| Global Property Guide | International property market analysis with Indonesia-specific data. | We used it for market trends, rental yield context, and price history verification. |
| InvestinAsia | Legal consultancy providing up-to-date guidance for foreign property buyers. | We used it to cross-check visa requirements and practical buying procedures. |
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.