Authored by the expert who managed and guided the team behind the Indonesia Property Pack
Yes, the analysis of Jakarta's property market is included in our pack
Buying property in Jakarta as a foreigner comes with specific rules, price floors, and legal structures that most buyers only discover after they start looking.
This guide breaks down everything you need to know about foreign ownership in Jakarta in January 2026, from what you can legally buy to how taxes and mortgages actually work.
We update this article regularly to reflect the latest regulations and market conditions.
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 Jakarta.
Insights
- Foreigners in Jakarta must spend at least IDR 3 billion (about USD 185,000) on an apartment or IDR 5 billion (about USD 310,000) on a landed house, making entry-level purchases impossible under the legal foreigner scheme.
- The most common ownership mistake in Jakarta is using a nominee (borrowing an Indonesian name) to buy cheaper properties, which can result in complete loss of the asset if the nominee disputes ownership.
- Bank Indonesia kept rates at 4.75% in late 2025, which means foreigners with KITAS residency can expect mortgage rates between 6% and 11.5% depending on the bank and loan structure.
- Closing costs in Jakarta typically run between 5.5% and 7% of the purchase price, with BPHTB (the transfer tax) alone accounting for roughly 4.5% on a standard foreign-eligible apartment.
- Tourist visa buyers face a red flag at registration since Indonesia's land office system expects foreigners to hold legal residency (KITAS or KITAP) for the cleanest ownership pathway.
- Annual property tax (PBB-P2) in Jakarta ranges from IDR 3 million to IDR 40 million per year depending on property type and assessed value, following the updated Perda DKI Jakarta No. 1/2024 framework.
- Non-resident foreigners earning rental income in Jakarta face a default 20% withholding tax under Article 26, though double-tax treaties with certain countries can reduce this rate.
- The Hak Pakai (Right to Use) title is what foreigners actually hold in Jakarta, not Hak Milik (freehold), which means you own the building but not the land underneath in the same way a local would.
What can I legally buy and truly own as a foreigner in Jakarta?
What property types can foreigners legally buy in Jakarta right now?
In Jakarta as of January 2026, foreigners can legally buy residential apartments, condominiums, landed houses, and townhouses, but not with freehold land ownership in their personal name.
The most important limitation is that foreigners must meet minimum price thresholds set by the government: IDR 3 billion (about USD 185,000) for apartments and IDR 5 billion (about USD 310,000) for landed houses in DKI Jakarta.
The right you will typically hold is called Hak Pakai (Right to Use), which is a registered land right that gives you legal protection but differs from the Hak Milik (freehold) that Indonesian citizens can obtain.
Your purchase must also go through the official land office (BPN) process and be notarized by a PPAT, so private contracts alone do not give you enforceable ownership in Jakarta.
Finally, please note that our pack about the property market in Jakarta is specifically tailored to foreigners.
Can I own land in my own name in Jakarta right now?
No, foreigners cannot own freehold land (Hak Milik) in their personal name in Jakarta because Indonesia's Basic Agrarian Law explicitly reserves this right for Indonesian citizens only.
The most common legal alternative is to hold a Hak Pakai (Right to Use) title, which is a registered right attached to your residence that gives you legal protection and the ability to transfer, inherit, or use the property as collateral.
Some foreigners also use long-term lease agreements (hak sewa), but these are contractual arrangements rather than registered land rights and offer weaker legal protection if disputes arise.
As of 2026, what other key foreign-ownership rules or limits should I know in Jakarta?
As of January 2026, the main rule that catches buyers off guard is that inheritance and transfer of foreigner-owned property are explicitly allowed under the ministerial decree framework, but only if your notary structures everything correctly for BPN registration.
Jakarta does not have a foreign-ownership quota for apartments like some other countries do, so there is no cap on how many units in a building can be owned by foreigners.
However, every property transfer must go through a PPAT (the official land deed officer) and be registered with BPN, which is a formal approval and registration requirement that cannot be skipped.
There have been no major regulatory changes announced for 2026, but the post-Cipta Kerja framework (PP 18/2021) continues to shape how Hak Pakai rights are granted and renewed, so staying informed through official channels is important.
What's the biggest ownership mistake foreigners make in Jakarta right now?
The single biggest mistake foreigners make in Jakarta is using a nominee arrangement (borrowing an Indonesian citizen's name) to buy property below the legal price thresholds, which creates a situation where you have no enforceable ownership if the nominee decides to dispute, sell, or pledge the property.
If a dispute arises, Indonesian courts will typically recognize the registered titleholder (the nominee), not your private side agreement, which means you could lose the entire property and any money you invested.
Other classic pitfalls in Jakarta include buying apartments with unclear strata title status, not verifying that the building has proper permits, and signing contracts before confirming that the property actually qualifies for foreign ownership registration at BPN.
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 Jakarta?
Do I need a specific visa to buy property in Jakarta right now?
In Jakarta as of January 2026, you can technically sign a private purchase contract on a tourist visa, but registering the property in your name through BPN typically requires you to be a legally residing foreigner with a KITAS (limited stay permit) or KITAP (permanent stay permit).
The single most common blocker for buyers without local residency is that banks, notaries, and BPN all expect documentation tied to your legal stay status, which a tourist visa does not provide.
You will also need local tax administration readiness because property transactions in Jakarta trigger BPHTB (the buyer-side transfer tax) and require proper identification for filing and registration.
A typical document set for foreign buyers includes your passport, valid stay permit (KITAS/KITAP), a local tax identifier, proof of funds, and the property's certificate and seller documents verified through your PPAT.
Does buying property help me get residency and citizenship in Jakarta in 2026?
As of January 2026, buying property in Jakarta does not directly give you residency or citizenship because Indonesia's immigration system is not a "buy-to-passport" program like some other countries offer.
Property ownership can support your practical settlement story and help demonstrate ties to Indonesia when applying for or renewing certain stay permits, but it is not a standalone pathway to permanent residency.
The main routes to long-term residency in Indonesia include employment-based KITAS, investor KITAS (which has separate capital requirements beyond real estate), retirement visas, and marriage to an Indonesian citizen, with KITAP (permanent stay) typically available after several years of continuous legal residence.
We give you all the details you need about the different pathways to get residency and citizenship in Jakarta here.
Can I legally rent out property on my visa in Jakarta right now?
Your visa status does not directly prevent you from earning rental income in Jakarta, but you must comply with Indonesia's tax rules regardless of whether you live in the country or manage the property remotely.
You do not need to physically reside in Indonesia to rent out your property, but if you are classified as a non-resident for tax purposes, your rental income will be subject to Article 26 withholding tax at a default rate of 20%.
Most foreigners who rent out property in Jakarta use a local property manager or agent, and the cleanest setup involves proper withholding and documentation to avoid issues with the tax office later.
We cover everything there is to know about buying and renting out in Jakarta here.
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How does the buying process actually work step-by-step in Jakarta?
What are the exact steps to buy property in Jakarta right now?
The standard sequence to buy property in Jakarta is: find the property and confirm it meets foreigner eligibility (price floors and title type), conduct due diligence on the title and seller, pay the required taxes (especially BPHTB), sign the transfer deed (Akta Jual Beli) through a PPAT, and then register the transfer at BPN to update the certificate.
You do not need to be physically present for every step since many can be handled with a properly drafted power of attorney, but at least one key signing or identity verification step may require you to be available in person or carefully represented.
The deal becomes legally binding when you sign the Akta Jual Beli (AJB) in front of the PPAT, which is the official deed that transfers ownership and gets submitted to BPN for registration.
The typical end-to-end timeline from accepted offer to final registration in Jakarta ranges from 4 to 12 weeks, depending on how quickly due diligence, tax payments, and BPN processing are completed.
We have a document entirely dedicated to the whole buying process our pack about properties in Jakarta.
Is it mandatory to get a lawyer or a notary to buy a property in Jakarta right now?
You do not strictly need a private lawyer, but you must use a PPAT (Pejabat Pembuat Akta Tanah) to create the official transfer deed, and BPN will not register your purchase without an Akta Jual Beli from a PPAT.
The key difference is that a PPAT handles the formal deed and registration paperwork required by law, while a private lawyer provides independent due diligence, contract review, and protection of your interests, especially important if the structure is complex or the seller is a company.
One key item to include in your lawyer or notary engagement scope is verification that the property's title is clean, that it qualifies for foreign ownership registration, and that no encumbrances or disputes will block the transfer at BPN.
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 Jakarta?
How do I verify title and ownership history in Jakarta right now?
The official authority to verify title and ownership history in Jakarta is BPN (Badan Pertanahan Nasional), and your PPAT or lawyer should check the certificate details against the land office records before you proceed.
The key document to request is the Sertifikat Hak (property certificate), which shows the registered owner, the type of right (Hak Milik, Hak Pakai, etc.), and any recorded encumbrances or annotations.
A realistic look-back period for ownership history checks in Jakarta is 10 to 15 years, which helps identify any patterns of disputes, forced sales, or irregular transfers that could affect your purchase.
A clear red flag that should stop or pause your purchase is finding that the property has been transferred multiple times in a short period, has unresolved inheritance claims, or shows annotations indicating ongoing disputes or court orders.
You will find here the list of classic mistakes people make when buying a property in Jakarta.
How do I confirm there are no liens in Jakarta right now?
The standard way to confirm there are no liens or encumbrances on a property in Jakarta is to have your PPAT or lawyer run a formal check at BPN, which will show whether the property is pledged as collateral (Hak Tanggungan) or has other recorded claims.
The most common type of lien to specifically ask about in Jakarta is Hak Tanggungan, which is the mortgage security right that banks register when the property is used as loan collateral.
The best form of written proof is a certificate or letter from BPN confirming the property's encumbrance status, combined with a seller declaration in the sale contract that the property is free of liens and that any existing encumbrances will be released before or at closing.
How do I check zoning and permitted use in Jakarta right now?
The authority to check zoning and permitted use in Jakarta is the local DKI Jakarta government (Dinas Cipta Karya, Tata Ruang dan Pertanahan), and your PPAT or lawyer can help obtain confirmation that the property is designated for residential use.
The key document is the IMB (Izin Mendirikan Bangunan) or the newer PBG (Persetujuan Bangunan Gedung), which confirms the building permit and shows what the structure is legally approved for.
A common pitfall that foreign buyers miss in Jakarta is purchasing an apartment or house in a development where the building permits are incomplete or disputed, which can create problems for resale, insurance, or even your legal right to occupy the unit.
Buying real estate in Jakarta 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 Jakarta, and on what terms?
Do banks lend to foreigners for homes in Jakarta in 2026?
As of January 2026, yes, several banks in Jakarta do lend to foreigners, but typically only if you hold a KITAS or KITAP residency permit and the property has a bankable title that the lender can take as collateral.
The realistic loan-to-value (LTV) range for foreign borrowers in Jakarta is typically 50% to 70%, meaning you should expect to put down at least 30% to 50% of the purchase price as a cash deposit.
The most common eligibility requirement is having verifiable income (local or foreign) that the bank can document, combined with a valid long-term stay permit and a property that qualifies for the foreigner ownership scheme.
You can also read our latest update about mortgage and interest rates in Indonesia.
Which banks are most foreigner-friendly in Jakarta in 2026?
As of January 2026, the banks most commonly used by foreigners for mortgages in Jakarta are BCA, Mandiri, and CIMB Niaga among domestic lenders, plus HSBC and Standard Chartered for those with existing international banking relationships.
What makes these banks more foreigner-friendly is that they have established processes for KITAS/KITAP borrowers, accept foreign income documentation (sometimes with tighter terms), and have staff experienced in handling non-Indonesian applicants.
Most of these banks will only lend to foreigners who hold local residency (KITAS or KITAP), so pure non-residents without any Indonesian stay permit will generally find it very difficult to obtain a mortgage in Jakarta.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Jakarta.
What mortgage rates are foreigners offered in Jakarta in 2026?
As of January 2026, foreigners with KITAS residency in Jakarta can typically expect mortgage rates between 6% and 8.5% for promotional or fixed introductory periods, rising to 8.5% to 11.5% once the loan switches to a floating rate.
Fixed-rate promotional periods usually last 1 to 3 years and offer lower rates, while variable (floating) rates adjust with market conditions and Bank Indonesia's benchmark rate, which was held at 4.75% in December 2025.
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 Jakarta?
What are the total closing costs as a percent in Jakarta in 2026?
For a buyer in Jakarta in 2026, total closing costs typically range from 5.5% to 7% of the purchase price for a standard resale transaction, with new-build purchases from developers sometimes running higher if VAT applies.
The realistic range covers most transactions, though complex deals with unusual structures or higher-value properties may see costs at the upper end or slightly above.
The main fee categories that make up closing costs in Jakarta are BPHTB (the buyer-side transfer tax), notary and PPAT fees, BPN registration fees, and sometimes legal or due diligence fees if you hire an independent lawyer.
The single biggest contributor is almost always BPHTB, which runs at 5% of the taxable value (purchase price minus the NPOPTKP exemption), typically accounting for roughly 4.5% of the total purchase price on a foreign-eligible apartment.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Jakarta.
What annual property tax should I budget in Jakarta in 2026?
As of January 2026, annual property tax (PBB-P2) in Jakarta typically ranges from IDR 3 million to IDR 12 million per year (about USD 185 to USD 740, or EUR 170 to EUR 680) for apartments at the foreigner minimum price point, and IDR 10 million to IDR 40 million per year (about USD 620 to USD 2,500, or EUR 570 to EUR 2,300) for landed houses in prime areas.
PBB-P2 in Jakarta is assessed based on the government-determined value of your land and building (NJOP), with rates and brackets set by local regulation, most recently updated under Perda DKI Jakarta No. 1/2024.
How is rental income taxed for foreigners in Jakarta in 2026?
As of January 2026, foreigners classified as non-residents for tax purposes face a default 20% withholding tax on rental income earned in Jakarta, though double-tax treaties between Indonesia and your home country may reduce this rate.
The basic requirement is that the tenant or property manager withholds the tax at source and remits it to the Indonesian tax authorities, with proper documentation showing the withholding was applied.
What insurance is common and how much in Jakarta in 2026?
As of January 2026, annual insurance premiums for residential property in Jakarta typically range from IDR 1.5 million to IDR 6 million per year (about USD 90 to USD 370, or EUR 85 to EUR 340) for apartment contents and fixtures, and IDR 4 million to IDR 20 million per year (about USD 250 to USD 1,240, or EUR 230 to EUR 1,140) for landed house building and contents coverage.
The most common type of property insurance in Jakarta is a combined policy covering fire, natural disasters, and theft, with apartment buildings often including basic coverage in the building management fees while owners add their own contents and fixtures protection.
The biggest factor that affects insurance premiums in Jakarta is flood risk, since properties in flood-prone areas (common in parts of North and East Jakarta) will see significantly higher premiums than those in elevated or well-drained locations.
Get the full checklist for your due diligence in Jakarta
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 Jakarta, 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 |
|---|---|---|
| Bank Indonesia (BI-Rate December 2025) | Official central bank statement on the benchmark rate that influences mortgage pricing. | We used it to anchor borrowing cost estimates for January 2026. We translated the policy rate into realistic mortgage rate ranges foreigners see from banks. |
| Bank Indonesia (Residential Property Price Survey) | BI's official survey-based index for primary-market residential prices. | We used it to describe the market backdrop rather than guess at trends. We cross-checked it against BPS publications for consistency. |
| Basic Agrarian Law (UUPA) | The core law defining land rights in Indonesia. | We used it to explain what foreigners cannot hold, specifically freehold land ownership. We cross-referenced it with implementing regulations. |
| PP 103/2015 (Foreigner Housing Regulation) | Key regulation specifically addressing foreigners' residential housing rights. | We used it to frame the foreigner housing regime and how it evolved. We layered PP 18/2021 and ATR/BPN rules on top for current applicability. |
| PP 18/2021 (Land Rights and Apartments) | Major post-Cipta Kerja implementing regulation reshaping land and apartment rights. | We used it to explain the structure and duration of Hak Pakai rights. We cross-referenced it with ATR/BPN rules and the foreigner price threshold decree. |
| ATR/BPN Decree 1241/2022 (Minimum Prices) | The ministerial decree setting price floors foreigners must meet by province. | We used it to give hard numbers for Jakarta eligibility. We cited the decree directly so readers can verify thresholds without relying on commentary. |
| ATR/BPN Transfer Checklist (Jual Beli) | Official government checklist for sale and purchase transfer requirements. | We used it to spell out the practical document steps for buyers. We kept the buying process section grounded in what BPN actually asks for. |
| Directorate General of Taxes (DJP) - BPHTB Explainer | National tax authority explaining tax mechanics in plain language. | We used it to explain BPHTB basics including the formula and cap. We then localized it using DKI's Bapenda rules for procedures. |
| Bapenda DKI Jakarta (NPOPTKP and BPHTB) | DKI's own tax office publishing how BPHTB and NPOPTKP are applied locally. | We used it to anchor Jakarta-specific BPHTB assumptions. We built realistic closing cost estimates from that baseline. |
| Bapenda DKI Jakarta (PBB-P2 under Perda 1/2024) | DKI's own guidance on annual property tax rules. | We used it to describe annual property tax in Jakarta in a non-technical way. We translated the rule structure into practical budgeting ranges. |
| DJP - Article 26 (Non-Resident Withholding) | Tax authority's official guidance on non-resident withholding mechanisms. | We used it to explain the default 20% withholding logic for non-residents. We applied it to rental income scenarios and noted treaty reductions. |
| DJP - VAT 2025 Policy Note | DJP's explanation of VAT policy changes affecting costs from 2025 onward. | We used it to avoid outdated VAT assumptions for new-build purchases. We cross-checked it with implementation summaries from tax practitioners. |
| Immigration Indonesia (KITAS Guidance) | Official immigration guidance explaining residency permit types and procedures. | We used it to ground what legal residency looks like for property buyers. We paired it with the registration reality of property transfers through BPN. |
| Reuters (BI Policy Context) | Globally recognized wire service with strong sourcing standards. | We used it only as context on the rate cycle narrative, not as a legal source. We kept the actual numbers anchored to BI's own press releases. |
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.
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