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Foreigners cannot directly own land in Makassar but can acquire property through specific legal mechanisms including Hak Pakai, leasehold arrangements, and company structures.
As of September 2025, foreign property investment in Makassar operates under Indonesia's revised regulations that allow various ownership structures while maintaining restrictions on freehold land ownership. Understanding these mechanisms is crucial for making informed investment decisions in this growing South Sulawesi market.
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Foreigners can purchase property in Makassar through Hak Pakai (30-year renewable rights), leasehold arrangements (25-year terms), or PT PMA company structures, but cannot own freehold land directly.
Property prices in Makassar range from IDR 700 million for apartments to IDR 2-5 billion for luxury houses, with additional costs including 5% buyer tax and various fees totaling 8-10% of purchase price.
| Ownership Type | Duration | Renewal Options | Suitable For |
|---|---|---|---|
| Hak Pakai (Right to Use) | 30 years | Renewable up to 80 years total | Residential properties, requires KITAS |
| Hak Sewa (Leasehold) | 25 years standard | Negotiable renewal | Apartments, commercial properties |
| Hak Guna Bangunan | 30 years | Renewable once for 20 years | Building on state/private land |
| PT PMA Company | Indefinite (company lifespan) | Not applicable | Investment properties, commercial |
| Strata Title | 25-30 years typically | Varies by development | Condominiums, mixed-use buildings |
Can foreigners legally own land or property in Makassar, and how does this compare to what locals can buy?
Foreigners cannot legally own land outright in Makassar under Indonesian law, as freehold ownership (Hak Milik) is exclusively reserved for Indonesian citizens.
Indonesian citizens enjoy unrestricted perpetual land ownership through Hak Milik titles, allowing them to buy, sell, inherit, and mortgage property without time limitations. Local buyers can purchase any type of residential or commercial property with full ownership rights and no renewal requirements.
Foreign buyers must use alternative legal structures to acquire property rights in Makassar. The most common options include Hak Pakai (Right to Use) for up to 30 years with renewal possibilities, Hak Sewa (Leasehold) arrangements typically lasting 25 years, Hak Guna Bangunan (Right to Build) for 30-year periods, or establishing a PT PMA (foreign investment company) structure. These mechanisms provide substantial property rights but come with time limitations and renewal procedures that don't apply to Indonesian citizens.
The key difference lies in permanence and flexibility. While locals have indefinite ownership, foreigners must navigate renewal processes and may face changing regulations over time. However, foreign ownership structures still provide strong legal protection and can be highly effective for both residential use and investment purposes.
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What types of property can a foreigner purchase, and are there restrictions on titles, leaseholds, or company ownership structures?
Foreigners can purchase houses, apartments, condominiums, and commercial properties in Makassar, but only through specific legal structures with accompanying restrictions.
Under Hak Pakai arrangements, foreigners are limited to properties with maximum land areas of 2,000 square meters for residential houses. These properties must meet minimum value requirements and are typically classified as luxury or mid-to-high-end properties. Apartments and condominiums can be purchased through strata title arrangements, usually structured as long-term leaseholds.
Leasehold properties (Hak Sewa) offer more flexibility in property types but come with 25-year standard terms. These arrangements work well for condominiums, shophouses, and commercial properties. Renewal terms must be negotiated in advance and documented in the original lease agreement.
PT PMA company structures allow the broadest property ownership options, including income-generating real estate, multiple properties, and commercial developments. This structure requires minimum investment amounts and ongoing company compliance but provides the most comprehensive property rights for foreign investors. Company ownership enables purchase of both residential and commercial properties without the size limitations that apply to individual Hak Pakai holdings.
Do foreigners from certain nationalities have more favorable rights or restrictions compared to others?
Indonesian property ownership laws apply uniformly to all foreign nationalities, with no specific advantages or restrictions based on country of origin as of September 2025.
All foreign buyers face identical requirements regardless of their passport, including the same ownership structure options, minimum investment thresholds, visa requirements, and property size limitations. The regulations governing Hak Pakai, leasehold arrangements, and PT PMA structures are nationality-neutral and apply consistently to American, European, Australian, and Asian foreign buyers.
Some bilateral investment agreements between Indonesia and specific countries may provide certain business facilitation benefits or streamlined visa processes, but these don't translate into superior property ownership rights. For example, citizens from ASEAN countries might have simplified visa procedures, but their property ownership options remain identical to other foreigners.
Future policy developments could potentially introduce nationality-based distinctions, particularly as Indonesia continues evolving its foreign investment framework. However, current regulations maintain equal treatment across all foreign nationalities in the Makassar property market.
What visa or residency status is required to buy or hold property, and does it change the rights you get?
A KITAS (Limited Stay Permit) or KITAP (Permanent Stay Permit) is required to access Hak Pakai property ownership in Makassar, while other ownership structures have varying visa requirements.
| Ownership Structure | Required Visa Status | Duration & Benefits |
|---|---|---|
| Hak Pakai (Right to Use) | KITAS or KITAP mandatory | 30 years, renewable to 80 years total |
| Leasehold (Hak Sewa) | Tourist visa sufficient for short-term | 25 years standard, depends on agreement |
| PT PMA Company | Enables Investor KITAS application | 2-year renewable visa, company lifespan |
| Strata Title | Varies by development structure | Typically 25-30 years |
| Power of Attorney Purchase | No specific requirement | Depends on underlying structure |
KITAS holders can maintain and renew Hak Pakai properties throughout their residency period. The visa status directly affects renewal eligibility, making consistent visa maintenance crucial for long-term property ownership. KITAP holders enjoy more stability with permanent residency status supporting indefinite property holding under Hak Pakai structures.
PT PMA property ownership can facilitate obtaining an Investor KITAS, creating a beneficial cycle where property investment supports visa eligibility. This two-year renewable visa provides strong residency status for business and property management activities.
Leasehold arrangements offer more flexibility for visa requirements, particularly for shorter-term property use or investment purposes. However, long-term leasehold management often benefits from having proper residency status for practical and legal convenience.
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Do you need to be physically present in Indonesia during the buying process, or can everything be handled remotely?
Property purchases in Makassar can be completed entirely remotely through proper legal representation and power of attorney arrangements.
Remote property buying requires establishing a comprehensive power of attorney with a trusted Indonesian lawyer or real estate agent. This legal document must be notarized and apostilled in your home country before being validated by Indonesian authorities. The power of attorney should specifically cover property search, due diligence, contract negotiation, signing authority, and fund transfer authorization.
Digital documentation processes have streamlined remote purchases significantly since 2024. Electronic signatures are accepted for preliminary agreements, and online document processing expedites title verification and registration procedures. Video conferencing enables real-time participation in negotiations and final signing ceremonies when physical presence isn't possible.
However, remote purchases require exceptional due diligence and trusted local representation. Property inspections, neighborhood assessments, and legal verification become entirely dependent on your appointed representatives. Many buyers choose a hybrid approach, conducting initial remote research and negotiations while traveling to Makassar for final inspections and document signing.
Banking arrangements for remote purchases require advance planning, as Indonesian banks often prefer in-person account opening and fund verification for large property transactions.
What are the exact steps in the buying process, and which documents must be provided and signed?
The Makassar property buying process follows a structured nine-step procedure requiring specific documentation and professional oversight.
Initial steps involve selecting the appropriate ownership structure based on your visa status, investment goals, and property type. This decision determines all subsequent documentation and legal requirements. Engaging a qualified Indonesian lawyer for comprehensive due diligence typically takes 2-4 weeks and includes verifying current ownership, checking for liens or disputes, confirming zoning compliance, and validating building permits.
Required documents include a valid passport, current Indonesian visa or KITAS, Indonesian tax identification number (NPWP), proof of funds through bank statements, marriage certificate if applicable, and any relevant business registration documents for company purchases. All foreign documents must be translated into Indonesian and notarized by authorized translators.
The formal buying process begins with signing a preliminary purchase agreement and paying a deposit ranging from 10-30% of the property value. This is followed by preparing the comprehensive Sale & Purchase Agreement (Perjanjian Jual Beli) with a licensed notary public (PPAT). Tax payments include the 5% buyer's acquisition tax (BPHTB) and 2.5% seller's income tax, plus notary fees typically 1-1.5% of property value.
Final steps involve registering ownership at the National Land Office (BPN), receiving the official ownership certificate corresponding to your chosen structure (Hak Pakai, HGB, or strata title), and obtaining any required visa upgrades or renewals. The entire process typically takes 6-12 weeks depending on due diligence complexity and document preparation efficiency.
Is it mandatory to hire a local lawyer or notary, and what role do they play in verifying ownership and contracts?
While not legally mandatory, hiring both a local lawyer and using a licensed notary (PPAT) is essential for secure property transactions in Makassar.
Indonesian law requires all property transfers to be processed by a licensed Land Deed Official (Pejabat Pembuat Akta Tanah - PPAT), who serves as both notary and government representative. The PPAT validates ownership transfers, ensures tax compliance, and registers the transaction with the National Land Office. However, PPATs represent the legal process rather than your specific interests as a buyer.
An independent lawyer provides crucial buyer representation throughout the transaction. Their responsibilities include conducting comprehensive due diligence on property ownership history, verifying the seller's legal right to transfer ownership, checking for outstanding liens, mortgages, or legal disputes, confirming zoning and building permit compliance, and reviewing all contract terms to protect buyer interests. Lawyers also coordinate with PPATs to ensure proper documentation and registration.
Legal fees typically range from 1-2% of property value, while PPAT fees are standardized at approximately 1% of transaction value. This combined 2-3% investment in professional legal services provides essential protection against the significant risks of property fraud, title disputes, and regulatory non-compliance that can occur in foreign property transactions.
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Are mortgages available for foreigners in Makassar, and if so, what are the usual rates, conditions, and tips to improve approval chances?
Mortgages for foreign property buyers in Makassar are available but limited, with stricter requirements and higher costs compared to loans for Indonesian citizens.
Most Indonesian banks require foreign borrowers to hold KITAS or KITAP residency status and maintain local banking relationships for at least six months before mortgage approval. Interest rates for foreigners typically range from 8-12% annually, significantly higher than the 6-8% rates available to Indonesian citizens. Loan-to-value ratios are generally capped at 60-70% for foreigners compared to 80-90% for locals.
Required documentation includes comprehensive income verification from your home country, Indonesian tax records if available, employment contracts or business registration, detailed bank statements covering 6-12 months, property valuation reports, and insurance coverage. Many banks also require local co-signers or guarantors, particularly for larger loan amounts.
Improving approval chances requires establishing strong Indonesian banking relationships before property shopping, maintaining consistent local income or business activities, providing extensive financial documentation, considering larger down payments to reduce bank risk, and working with mortgage brokers who specialize in foreign client services. Some foreign buyers find success with international banks operating in Indonesia, as these institutions often have more experience with cross-border lending.
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What taxes, fees, and extra costs should be expected at purchase, during ownership, and upon resale?
Property transactions in Makassar involve substantial upfront costs and ongoing fees that typically add 8-10% to the purchase price, plus annual maintenance expenses.
| Cost Category | Amount/Rate | Payment Timing |
|---|---|---|
| Buyer's Acquisition Tax (BPHTB) | 5% of property value | At purchase completion |
| Seller's Income Tax | 2.5% (usually paid by buyer) | At purchase completion |
| Notary/PPAT Fees | 1-1.5% of property value | During legal processing |
| Due Diligence/Legal Fees | 1-2% of property value | During transaction process |
| Real Estate Agent Commission | 2-5% (varies by agreement) | At transaction completion |
During ownership, annual costs include Land and Building Tax (Pajak Bumi dan Bangunan - PBB) typically ranging from 0.1-0.3% of assessed property value. Condominium properties incur additional monthly maintenance fees averaging IDR 15,000-30,000 per square meter, plus utilities, insurance, and security charges. Property management fees for rental properties typically cost 8-12% of rental income.
Resale transactions trigger capital gains tax calculated on profit margins and holding periods. Properties held less than five years face higher tax rates, while longer-term holdings receive preferential treatment. Additional resale costs include agent commissions, legal fees for transfer documentation, and possible transfer taxes depending on the ownership structure.
It's something we develop in our Indonesia property pack.
Which neighborhoods or districts in Makassar are most popular with foreigners, and how do they rank for liveability, tourism, rental yields, and long-term appreciation?
Foreign property buyers in Makassar concentrate primarily in five key districts that offer the best combination of amenities, infrastructure, and investment potential.
Panakkukang district ranks highest for overall liveability, featuring modern shopping centers like Mall Panakkukang and Trans Studio Mall, international restaurants, healthcare facilities, and well-maintained infrastructure. The area attracts expatriate families and business professionals, supporting strong rental demand and steady appreciation rates of 5-8% annually.
Losari Beach area appeals to tourism-focused investors and lifestyle buyers seeking waterfront proximity. Properties here command premium prices but offer excellent rental yields from both short-term vacation rentals and long-term expatriate tenants. The ongoing waterfront development projects suggest strong long-term appreciation potential.
Tanjung Bunga represents Makassar's premium residential district, attracting wealthy Indonesian buyers and expatriates seeking luxury housing. Properties here show the highest appreciation rates but require substantial initial investments and offer moderate rental yields due to the upscale target market.
Ratu Indah provides excellent value for money with good infrastructure, shopping facilities, and residential amenities at more accessible price points. This district offers balanced investment potential with steady rental demand and moderate appreciation rates, making it suitable for first-time foreign buyers.
Pettarani corridor benefits from major infrastructure developments and university proximity, creating strong rental demand from students and young professionals. Properties here show promising long-term appreciation potential as the area continues developing rapidly.
What are the current price ranges for property in Makassar compared to other Indonesian cities or regions?
Makassar property prices position the city as a mid-tier Indonesian market, significantly more affordable than Jakarta or Bali but commanding premiums over smaller regional centers.
Apartment prices in Makassar start from approximately IDR 700 million (USD 47,000) for basic one-bedroom units in secondary locations, rising to IDR 1.5-2.5 billion (USD 100,000-167,000) for premium units in prime districts like Panakkukang or Losari Beach. Luxury penthouses in premium developments can reach IDR 3-4 billion (USD 200,000-267,000).
Landed houses show wider price variations, with basic three-bedroom homes in outer districts starting around IDR 1.2-1.8 billion (USD 80,000-120,000). Mid-range houses in desirable neighborhoods like Ratu Indah typically cost IDR 2-3.5 billion (USD 133,000-233,000), while luxury houses in Tanjung Bunga or waterfront locations can exceed IDR 5-8 billion (USD 333,000-533,000).
Compared to other Indonesian cities, Makassar prices are approximately 40-60% lower than comparable Jakarta properties, 50-70% below Bali's popular areas, but 30-50% higher than cities like Medan or Surabaya. This positioning makes Makassar attractive for investors seeking Indonesian exposure without Jakarta or Bali price premiums, while still accessing a major regional economic center with strong growth prospects.
What are the most common mistakes foreigners make when buying property in Makassar, and how can they be avoided?
Foreign property buyers in Makassar frequently encounter five critical mistakes that can result in financial losses or legal complications.
The most dangerous mistake involves relying on informal agreements or handshake deals instead of proper legal documentation. Some buyers attempt to save costs by skipping professional legal representation or using unqualified notaries, leading to invalid ownership structures or fraudulent transactions. Always engage licensed PPATs and independent lawyers regardless of apparent cost savings.
Many foreigners purchase properties without confirming their visa status compatibility with their chosen ownership structure. Buying under Hak Pakai without maintaining KITAS status invalidates the ownership, while others fail to understand renewal requirements and timelines. Verify visa requirements before committing to any purchase and maintain proper immigration status throughout ownership.
Inadequate due diligence represents another common failure, with buyers accepting seller representations without independent verification. This includes failing to confirm clear title, checking for outstanding liens or disputes, verifying building permits and zoning compliance, and understanding strata title complexities for condominium purchases. Conduct comprehensive due diligence through qualified professionals rather than relying on seller-provided information.
Financial underestimation causes significant problems when buyers fail to budget for total transaction costs, ongoing ownership expenses, and potential currency fluctuation impacts. Calculate all costs including taxes, fees, maintenance, and management expenses before committing to purchases.
Finally, many foreign buyers misunderstand leasehold renewal processes and subletting restrictions, assuming automatic renewal rights or unrestricted rental capabilities. Carefully review all agreement terms and ensure renewal conditions are clearly documented in original contracts.
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.
Foreign property ownership in Makassar requires careful navigation of Indonesian regulations but offers substantial opportunities for both lifestyle and investment purposes.
Success depends on choosing appropriate ownership structures, maintaining proper visa status, engaging qualified legal representation, and conducting thorough due diligence throughout the buying process.
Sources
- DSG Pay - Buying Property in Indonesia for Foreigners
- Emerhub - Laws and Regulations for Buying Property in Indonesia
- Own Property Abroad - How to Buy Property in Makassar
- Ray White Indonesia - Everything Foreigners Need to Know
- Emerhub - Buying Property in Indonesia
- ASEAN Briefing - Indonesia's Omnibus Law
- Indonesia Real Estate - Property Buying Process
- Incorp Asia - How to Buy Property
- Wise - Buy Property in Indonesia
- Cekindo - Buy a House in Indonesia