Now foreigners can own a property in Indonesia?
“Foreigner is obliged to maintain their stay permit in order to maintain their Right to Use Title for the property, once the stay permit are no longer apply the title within 1 (one) year must be transferred to another eligible person or entities“
During the last few months, Indonesian government is trying to stimulate the National economic growth by issuing an investment “friendly” regulation. Recently the Government just issued a new regulation on property sector which gave a chance for a foreigner to acquire property here in Indonesia for a certain period of time.
In principle, foreign citizens cannot obtain a freehold Rights to any land and housing in Indonesia, foreigner can obtain housing or apartment under limited Rights to Use Title (Hak Pakai).
Under the new regulation foreigners are allowed to have a residence in Indonesia, with the following terms and conditions:
a) Foreigner must be the holder of a residence permit in Indonesia and obliged to maintain their stay permit during Rights to Use Title Period apply.
b) The Residences (House or Apartment) must be:
i) Single house above ground with Rights to use ownership or Rights to use which based on an agreement above free hold Rights with Notarial Deed; and
ii) Unit Housing Project (Apartment) which is standing strictly on the Rights to use land.
c) Houses or apartments were purchased must be a new buildings which are purchased directly from the developer as land owner and not a used unit; and
d) Minimum price range apply in accordance with the conditions set varies for each region in Indonesia Territory, including:
i) DKI Jakarta : Minimum of IDR 10 Billion;
ii) Banten and West Java : Minimum of IDR 5 Billion; and
iii) Bali : Minimum of IDR 3 Billion.
i) DKI Jakarta : Minimum of IDR 5 Billion;
ii) Banten and West Java : Minimum of IDR 1 Billion; and
iii) Bali : Minimum of IDR 2 Billion.
Foreigners who have secured Rights to Use Title are entitled for holding the Rights as a whole up to 80 (eighty) years and during property Rights to Use apply, a foreigner could transfer their Rights to another party.
Foreigners are obliged to maintain their stay permit in order to maintain their Right to Use Title for the property. Once the stay permit is no longer valid, the right to use title holder must transfer to another eligible person or entities within a year.
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