- Newly launched property law allows foreigners to buy property in Indonesia with a passport.
- It encourages non-Indonesians to invest across borders in the local real estate and promote economic integration.
- They will need to invest in certain amounts and be subject to the same regulations as Indonesian citizens.
Exciting news from Indonesia for those who are keen on investing in property! The government just rolled out a brand-new property law that makes it a breeze for international folks (WNA) to snag their own piece of paradise with nothing more than their trusty passport.
Gone are the days of navigating a maze of property regulations. In the past, international buyers had limited options, like the Hak Pakai property route, leasing, or setting up a PT PMA for those looking to generate some rental income.
But guess what? Now, all you need is your passport to dive into the Indonesian real estate scene.
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How Can Foreigners Buy Property in Indonesia with a Passport?
In a noteworthy update from the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency in 2023, Government Regulation No.18/2021 brings some excellent news for international investors eyeing property in Indonesia.
Today, foreigners can buy property in Indonesia with a passport, as straightforward as without needing a specific visa permit.
“Unlike previous regulations where foreigners are required to have a Limited Stay Permit Card (KITAS) and a Permanent Stay Permit Card (KITAP) first, now the KITAS and KITAP will be given after the property purchase or acquisition”, as clarified by the Secretary General of the Ministry of Agrarian Affairs.
Under Government Regulation No.18/2021, there’s more good news in store for foreign property buyers in Indonesia. Now, when you’re looking to invest in Indonesian real estate with just your passport, you’ve got a broader range of apartment ownership options.
You can opt for Hak Pakai (the right to use) or Hak Guna Bangunan (the right to build) on state-owned land, property rights land, and management rights land (HPL). Notably, Hak Guna Bangunan grants you a maximum validity of 80 years.
Why Did Indonesia Introduce New Property Regulation?
Indonesia’s recent property regulation is to bolster the nation’s competitive standing, aligning itself with neighbouring countries like Singapore and Malaysia. The government is convinced that fostering foreign involvement will elevate its competitive position.
In line with this strategy, Indonesia introduced the Second Home Visa in 2022 and has plans to unveil the Golden Visa by the end of 2023.
These initiatives are part of a calculated effort to generate more job opportunities and invigorate the national economy. By simplifying the process for foreign investors to buy property in Indonesia with a passport, the nation is poised for mutually beneficial outcomes.
Here’s something to keep in mind: to ensure this policy helps the nation’s economy, there are some important rules in place. Foreign buyers will follow the same property tax and regulations as Indonesian citizens and must also comply with zoning and land use laws.
What are the Requirements to Buy Property in Indonesia with a Passport?
To kick things off, your passport should have a minimum validity of 36 months from the purchase date.
Also, there are some specific criteria when it comes to land size and the capital you’ll need to invest. You’re entitled to own a single plot of land, but it must not exceed 2000 m2.
Working with a legal and real estate agent is advisable if you want to buy property in Indonesia with a passport.
Another regulation that has been issued is Ministerial Decree ATR/KBPN No.1241/SK-HK.02/IX/2022 Year 2022 Acquisition and Prices for Foreigners’ Residential/Dwelling Houses.
Here are the minimum prices required if you’re keen to buy property in Indonesia with a passport:
For Landed Houses:
| Regions/Provinces | Minimum Prices |
|---|---|
| Jakarta, Banten, West Java, Central Java, East Java, the Special Region of Yogyakarta, and Bali | IDR 5 Billion |
| West Nusa Tenggara | IDR 3 Billion |
| North Sumatra, East Kalimantan, South Sulawesi, and Riau Archipelago | IDR 2 Billion |
| Other Regions/Provinces | IDR 1 Billion |
For Flats/Apartments:
| Regions/Provinces | Minimum Prices |
|---|---|
| Jakarta | IDR 3 Billion |
| Banten, West Java, Central Java, East Java, Special Region of Yogyakarta, Bali | IDR 2 Billion |
| Other Regions/Provinces | IDR 1 Billion |
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