“The right to acquire property by a foreigner is limited according to the Regulation of Agrarian Minister No. 13 of 2016

Indonesian Law has allowed foreigner to acquire a property here in Indonesia. However, the right to acquire property by foreigner is limited according to the Regulation of Agrarian Minister No. 13 of 2016. Here are certain types of property purchasing that are eligible for foreigner:

First, foreigner is eligible to purchase single house or apartment if the property is a new unit that is purchased from first hand, such as developer or the owner of the land. The expatriate is not allowed to purchase the single house or apartment from the second seller.

Second, the single house or apartment that will be purchased should fulfil the criteria of minimum price as explained in the attachment if the Agrarian Minister Regulation, as mentioned below:

No Location Single House ≥ (IDR) Apartment ≥ (IDR)
1 DKI Jakarta 10 Billion 5 Billion
2 Banten 5 Billon 1 Billion
3 West Java 5 Billion 1 Billion
4 Central Java 3 Billion 1 Billion
5 Yogyakarta 3 Bilion 1 Billion
6 East Java 5 Billion 1,5 Billion
7 Bali 3 Billion 2 Billion
8 West Nusa Tenggara 2 Billion 1 Billion
9 North Sumatra 2 Billion 1 Billion
10 East Kalimantan 2 Billion 1 Billion
11 South Sulawesi 2 Billion 1 Billion
12 Another Territory 1 Billion 750 Million

Third, Foreigner can only acquire property with Right to Use Title (Hak Pakai) and not eligible to acquire land or property with Right of Ownership (Hak Milik) Title nor Right to Build Title (Hak Guna Bangunan).

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ELSON Indonesia is a company that focus on providing comprehensive legal solution for expatriates, foreigner, and mix marriage couple in Indonesia.

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Author: ELSON