Indonesia’s Agrarian Law called Undang-Undang No.5 Tahun 1960 Article 16 (1) is based on the Indonesian Constitution. It covers seven kinds of ownership structure but for our purposes only four of these apply.
An Indonesian citizen is entitled to use any of these structures. A foreigner, however, cannot own property under a Hak Milik (freehold) title.
In December 2015, the government updated the property ownership laws making it easier for foreigners to own land and property under Hak Pakai and Hak Sewa for residential properties and Hak Guna Bangunan for commercial titles.
In all cases, as a foreigner, you need to show that you are partly living, working, retiring or investing in Indonesia.
Hak Pakai certificates are valid for 80-years with automatic extensions after 30-years and 50-years.
Hak Sewa certificates can range from one year up to the same maximum length as Hak Pakai, for a total of 80-years.
If you’re not comfortable with either Hak Pakai or Hak Sewa another option is to create a foreign owned company (called a PT PMA.) This company can legally have a Right to Build (HGB) certificate. You own the company and the company owns the property.
President Jokowi issued Government Regulation No. 18 Year 2021, concerning management rights, land rights, unit flats, and the land registry.
This rule is a derivative of the provisions of Article 142 and Article 182 Letter B of Law Number 11 of 2020, concerning job creation, otherwise known as the Omnibus Law.
The regulation states that foreigners or foreign citizens can now own an apartment unit.
“Ownership rights to apartment units are granted to Indonesian citizens; legal Indonesian entities; foreigners who have permits in accordance with the provisions of laws and regulations; legal foreign entities that have representatives in Indonesia; or representatives of foreign countries and international institutions that are or have representatives in Indonesia.”
Not all foreigners are free to live and own a condominium unit, as stated in Article 69. Instead, only foreigners who have an official immigration permit can own a condominium unit or residence.
What will be the impact of apartment ownership by foreigners on the property industry?
Responding to this, Deputy General Chairperson of Real Estate Indonesia (REI) Bambang Eka Jaya said the apartment ownership policy could encourage growth in the property sector. This will be the case especially in the upper-middle segment of apartments worth more than IDR 5 billion.
Ownership of residential houses or residences for foreigners as referred to in Article 71 is granted with the following limitations: minimum price; land area; the number of land parcels or units; and designation for residential purposes.
Further provisions regarding the procedures for granting and limiting ownership of residential houses by foreigners, as referred to in Article 69 to Article 72, are regulated in a ministerial regulation.
Furthermore, if a foreigner who owns a condominium unit or occupancy in Indonesia with this usufructuary status dies, the ownership of the condominium unit can be passed onto their heirs. In the event that the heir is a foreigner, the heir must have immigration documents in accordance with the provisions of the legislation.
Government Regulation No. 18 Year 2021 concerning management rights, land rights, unit flats, and the land registry has been in force since enacted on 2nd February 2020. (Source: Indonesia Expat.)
|Minimum price thresholds for foreigners||Minimum price thresholds for foreigners|
|Jakarta||IDR 10 billion||IDR 5 billion|
|Banten, West Java||IDR 5 billion||IDR 2 billion|
|East Java||IDR 5 billion||IDR 1.5 billion|
|Bali||IDR 3 billion||IDR 2 billion|
|Central Java, Yogyakarta||IDR 3 billion||IDR 1 billion|
|NTB, North Sumatra, East Kalimantan, South Sulawesi||IDR 2 billion||IDR 1 billion|
|Other Regions||IDR 1 billion||IDR 750 million|
Price thresholds taken from Government Regulation No.13 Year 2016.
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VOA LIST EXPANSION
Who can apply for VOA:
Please find below details of the latest immigration regulations:
Single Entry Visitor Visas (B211A, B211B and B211C) issued after 16 April 2022, for both 60-days, can no longer be extended and you’ll need to apply for a new onshore visa, which we can process for IDR 4,500,000.
Single Entry Visitor Visas (B211A, B211B and B211C) issued before 16 April 2022, can be extended one more time for an additional 60-days. After the 60-days, you’ll need to apply for a new onshore visa. We can process this one time extension for IDR 2,500,000/ person and a new visa for IDR 4,500,000.
Your visa validity begins from the date of your arrival in Indonesia if you’re using the Denpasar Immigration Office.
And if you’re using the Ngurah Rai Immigration Office, your visa validity begins from the date your E-Visa was issued.
If arrival was before April 16 2022, the visa can be extended just one more time and is then valid for an additional 60-days. We can process this one time extension for IDR 2,500,000/ person.
Please note the visa cannot be extended more than one time but you can apply for a new onshore visa, which we can process for IDR 4,500,000.
If arrival was after April 16, 2022 the visa cannot be extended but you can apply for a new onshore visa, which we can process for IDR 4,500,000.
Visas on Arrival (VOA) can only be granted a one-time extension for 30-days, which we can process for IDR 950,000.
Please note this information was correct at the time of publication and may change without prior notice. Seven Stones Indonesia is not responsible for any updates and changes to these regulations.