- 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.
Yes, foreigners can now buy property in Indonesia using only a passport, thanks to Government Regulation 18/2021 clarified by Ministerial Decree 1241/SK-HK.02/IX/2022. However, this route is most useful for buying apartments (strata title) above the minimum price floor — IDR 5 billion (~$315,000 USD) in Bali. Landed houses follow the same minimums but with extra ownership-structure considerations.
Foreigners still cannot hold freehold (Hak Milik) land in their personal name. This 2026 guide walks through what you can buy, how much it costs, the step-by-step process, and how the new Golden Visa changes the calculation.
Last reviewed: [Month] 2026 · Reviewed by: [Name], Legal Advisor, Balitecture Realty
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.
We hope you enjoy this article.
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The Short Answer: Yes, But With Conditions
Under Government Regulation No. 18 of 2021, foreigners can buy property in Indonesia with just a valid passport. You no longer need a KITAS (Limited Stay Permit) or KITAP (Permanent Stay Permit) before you purchase — these can be obtained after the property transaction if needed.
But “buying with a passport” comes with three conditions most articles don’t explain clearly:
- The property must be above a minimum price floor that varies by region (IDR 5 billion for landed houses in Bali, IDR 2 billion for apartments).
- The most accessible property type is strata-title apartments (Sarusun) — these are what the new law was primarily designed for.
- You cannot own freehold land (Hak Milik) in your personal name. That right is reserved for Indonesian citizens. Foreigners hold property through Hak Pakai (Right to Use) or Hak Guna Bangunan (Right to Build), even with the new passport route.
If you’re buying a Bali villa, the passport route is usually not the simplest path. Most foreign villa buyers in Bali use leasehold (Hak Sewa) for villas under the price floor, or set up a PT PMA (foreign-owned Indonesian company) for larger investments. We compare all three routes below.
What Changed in 2023 (and What's Updated for 2026)
The Ministry of Agrarian Affairs and Spatial Planning / National Land Agency (ATR/BPN) rolled out the new rules in two waves:
- Government Regulation 18/2021 — the foundational law allowing foreign ownership without prior KITAS/KITAP.
- Ministerial Decree 1241/SK-HK.02/IX/2022 — set the specific minimum prices and conditions.
Two further developments since then matter for 2026 buyers:
- The Second Home Visa, launched in 2022 with refinements in 2023-2024, now allows multi-year stays for property-owning foreigners.
- The Golden Visa, fully operational since 2023, offers 5-10 year visa terms for foreigners investing US$350,000+ in Indonesian government bonds, business shares, or property. We cover this in detail in the Golden Visa section below.
The combined effect: 2026 is the easiest legal environment for foreign property buyers in Indonesia in over two decades.
What You Can Actually Buy with a Passport
The passport route doesn’t give foreigners blanket buying rights. It gives access to specific property types under specific ownership structures.
Apartments (Sarusun) — The Main Use Case
Sarusun (Satuan Rumah Susun) means strata-title apartment. This is what the passport route was primarily designed for. Foreigners can buy apartments through:
- Hak Pakai (Right to Use) — 30-year initial term, extendable for 20 years, then renewable for 30 more (up to 80 years total)
- Hak Guna Bangunan (HGB / Right to Build) — 30-year initial term + 20-year extension + 30-year renewal, up to 80 years total
Both structures are notarised, registered with the local land office, and legally binding.
Landed Houses — Available But With Stricter Rules
Foreigners can also buy landed houses (a house plus the land underneath) but only through Hak Pakai over state-owned land or management-rights land (HPL). You cannot own freehold land beneath a landed house in your personal name. The minimum prices for landed houses are also higher than for apartments.
For Bali villa buyers specifically, this is why leasehold (Hak Sewa) or PT PMA structures are typically used — they’re more flexible than the passport route for the typical 2-3 bedroom villa purchase.
Land — Foreigners Cannot Buy Freehold Land
This is the most-misunderstood point in every “buy with passport” article. Indonesian law still reserves freehold land ownership (Hak Milik) for Indonesian citizens. Foreigners cannot — under any visa, passport, residency status, or structure short of citizenship — hold Hak Milik in their personal name. To control land in Bali for a build, foreigners use leasehold (Hak Sewa) with the local landowner, or a PT PMA company that can hold HGB land title.
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 |
Step-by-Step Process to Buy with a Passport
The actual transaction process for a foreigner using the passport route looks like this:
- Find the property and verify eligibility — confirm the property meets the minimum-price floor for your region and is suitable for foreign ownership under Hak Pakai or HGB.
- Engage a licensed Indonesian notary (PPAT) — required for all property transactions involving foreign buyers.
- Due diligence — verify land certificate (sertifikat), zoning compliance (RTRW), tax clearance, and any encumbrances.
- Sign the Sale and Purchase Agreement (PPJB) — typically requires a 10-30% deposit.
- Pay BPHTB transfer tax — 5% of the sale price, paid by the buyer.
- Sign the Deed of Sale (AJB) before the PPAT notary.
- Register the new title at the local land office (BPN) — process takes 4-8 weeks.
- Apply for KITAS or Second Home Visa if longer-term residency is needed (not required for the purchase itself).
Working with a licensed local real estate agent and a notary specialising in foreign-buyer transactions is strongly recommended.
Costs Beyond the Sale Price
The headline price is not the full cost. Budget for these additional fees:
- BPHTB (Buyer’s Transfer Tax): 5% of sale price
- Notary fees: 1-2.5% of sale price
- Property tax (PBB): 0.5% annually, ongoing
- VAT (PPN): 11% on new-construction apartments only (not on resale)
- Land title certificate issuance: ~IDR 2-5 million ($125-$315 USD)
- Real estate agent commission: typically paid by the seller (3-5%) but verify
- Due diligence + legal review: $1,500-$5,000 USD depending on complexity
Rule of thumb: budget 7-9% above the headline price for total transaction costs.
Passport Route vs Leasehold vs PT PMA — Which Should You Choose?
| Route | Best For | Minimum Investment | Term | Notes |
|---|---|---|---|---|
| Passport (Hak Pakai / HGB) | Apartments above the price floor; landed houses for serious investors | IDR 2-5 billion ($125K-$315K+) | Up to 80 years | Easiest legally; price floor is the gate |
| Leasehold (Hak Sewa) | Typical 2-3BR Bali villas under the price floor | No minimum | 25-30 years initial + extensions | Most common for foreign Bali villa buyers; flexible but time-limited |
| PT PMA (Foreign-Owned Co.) | Commercial-scale investments, multiple properties, rental businesses | ~IDR 10 billion equivalent (capital req) | Indefinite (corporate) | Strongest long-term ownership; setup + ongoing compliance costs |
Quick decision guide:
- Buying a Bali villa under $300K USD? → Leasehold is usually the right structure.
- Buying a Bali apartment or luxury villa above $315K USD? → Passport route (Hak Pakai) works.
- Investing in multiple properties or running a rental business? → PT PMA is the right structure.
How the Golden Visa Changes Things in 2026
Indonesia’s Golden Visa, fully operational since 2023, gives long-term residency to foreigners investing in the country. Key 2026 details:
- 5-year Golden Visa: investment of $350,000 USD (individual) or $25 million USD (corporate)
- 10-year Golden Visa: investment of $700,000 USD (individual) or $50 million USD (corporate)
- Investment options: government bonds, public-company shares, or property purchase qualifies under specific conditions
- Benefits: long-term residency, no exit-and-re-enter visa cycle, easier banking access, ability to bring family
The Golden Visa does not replace the passport route for property purchase — it complements it. Many high-end foreign buyers in Bali use the passport route to acquire the property, then apply for the Golden Visa using that property purchase as their qualifying investment.
Ready to Start your Journey of property Investment in Bali?
We believe foreign buyers deserve an honest picture before committing capital. Here are the main considerations:
- Regulations can change — Indonesian property law has trended toward more foreign-friendly over the past decade, but rules can be revised. Work with a licensed agency.
- Hak Pakai is time-limited — even with renewals, the maximum is 80 years. This is different from outright ownership.
- Currency risk — your home currency vs IDR fluctuations affect both the purchase and any future sale or rental income.
- Tax obligations may exist in your home country — Indonesian property income may need to be declared at home depending on your tax residency. Consult a tax advisor in your jurisdiction.
- Resale liquidity varies — foreign buyers reselling to other foreigners must comply with the same minimum-price floors, which can constrain pricing flexibility.
This article provides general information and is not legal or financial advice. Indonesian property law is jurisdiction-specific and changes over time. Consult a licensed Indonesian notary (PPAT) and a qualified advisor in your home country before making any investment decision.
Ready to Buy Property in Indonesia?
Balitecture Realty is an AREBI-licensed and SIUP-4 certified Bali real estate brokerage. We have helped foreign buyers navigate the passport route, leasehold, and PT PMA structures since 2016, with offices in Bali and Hong Kong for international support.
Our in-house legal team handles:
- Property eligibility verification (price floor, zoning, title)
- Due diligence on the seller and the property
- Coordination with a licensed PPAT notary
- BPHTB and tax calculation
- Land title registration follow-through
- KITAS or Golden Visa support after purchase
[Browse Bali villas for sale →] [Browse Bali land for sale →] [Book a free consultation →]
Frequently Asked Questions
These FAQs are AI-Overview-optimized (concise, answer-first, around 50-80 words each). Wrap them in FAQPage schema via Rank Math.
Can foreigners legally own property in Indonesia in 2026?
Yes. Foreigners can legally own property in Indonesia under Government Regulation 18/2021 and Ministerial Decree 1241/2022. Ownership is through Hak Pakai (Right to Use) or Hak Guna Bangunan (Right to Build) — both of which are notarised and legally binding. Freehold ownership (Hak Milik) remains reserved for Indonesian citizens.
Do I need a KITAS to buy property in Indonesia?
No. The 2021 regulation removed the KITAS/KITAP requirement. Foreigners can purchase using only a valid passport with at least 36 months remaining. KITAS or Second Home Visa can be obtained after the purchase if longer-term residency is desired.
What is the minimum price to buy property in Bali as a foreigner?
For landed houses in Bali: IDR 5 billion (approximately $315,000 USD). For apartments in Bali: IDR 2 billion (approximately $125,000 USD). These figures are set by Ministerial Decree 1241/2022 and apply to all foreign buyers.
Can I buy land in Bali with just a passport?
No. Foreigners cannot hold freehold land (Hak Milik) in their personal name under any structure. To control land for a build, foreigners use leasehold agreements (Hak Sewa) with the local landowner, or set up a PT PMA company that can hold Hak Guna Bangunan land title.
How long does a foreigner own property under Hak Pakai?
Hak Pakai has a 30-year initial term, extendable for 20 years, then renewable for 30 more — up to 80 years total. Hak Guna Bangunan follows the same 30+20+30 structure. Both are widely used by foreign investors and registered with the local land office.
What taxes do I pay when buying property in Indonesia?
Buyers pay BPHTB transfer tax (5% of sale price), notary fees (1-2.5%), and may pay VAT (11%) on new-construction apartments. Annual property tax (PBB) is 0.5% of assessed value. Sellers pay PPh Final income tax (2.5%) on resale.
Is the passport route better than leasehold for buying a Bali villa?
Not always. For typical 2-3 bedroom Bali villas under IDR 5 billion (~$315,000 USD), leasehold (Hak Sewa) is usually simpler and more flexible. The passport route works best for apartments and luxury villas above the regional price floor. The right structure depends on the property value, your timeline, and your investment goals.
Can I get a Golden Visa by buying property in Indonesia?
Yes — property purchase of $350,000 USD or more can qualify you for the 5-year Golden Visa, and $700,000 USD or more for the 10-year visa. The property purchase and Golden Visa are separate processes but can be combined. Many high-end foreign buyers use the passport route to acquire the property, then apply for the Golden Visa using the same investment.
Can foreigners rent out their Indonesian property?
Yes. Foreigners who own property through Hak Pakai, HGB, or PT PMA can rent the property short-term or long-term. Rental income is subject to Indonesian income tax (10% final tax on rental income). For commercial-scale rental operations, a PT PMA structure is recommended.
What happens to my property when my Hak Pakai expires?
You can extend Hak Pakai before the initial 30-year term expires, then renew again for a third term — up to 80 years total. If you choose not to extend, the property reverts to the underlying land-rights holder. Most foreign investors plan for the full 80-year cycle or transition to PT PMA structure during the lifetime of the lease.
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