property ownership in indonesia

Property Ownership in Indonesia for Expatriates in November 2022

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The rules of Property Ownership in Indonesia for expatriates have changed.

The Directorate General of Rights Determination and Land Registration has issued HR.01/1963/XI/2022 on November 1, 2022 in Jakarta. 

This Decree contains instructions on the implementation of Decree 1241/SK-HK.02/IX/2022 of the Ministry of Agriculture and the Minister of Spatial Planning/Director General of Land Management on Purchase and Housing Pricing for expatriates.

The government previously enacted Law No. 11 of 2020 on Job Creation as a legal umbrella for investment access. One area of ​​the law concerns land for expatriates and their ability to acquire property in Indonesia.

Note that the presence of expatriates brings advantages and allows them to do business, work or invest in the country. This aims to increase investment that will help improve the country’s economy. 

In addition, the ease of access to the property for expatriates is expected to have an impact on tourism and an increase in industry, and create local employment opportunities.

The ministry has formulated and issued some guidelines to facilitate expatriates to acquire property in Indonesia. Expatriates can own apartments built on land with HGB or Hak Pakai.

Based on Government Regulation number 18 of 2021 regarding management rights, land rights, apartment units, and land registration, the requirement for a foreigner to own a house as a place of residence or employment is to have a valid passport and visa or a stay permit.

Also read: Guide To Company Registration In Indonesia

Expatriates can own a house of occupation or residential properties in the following formats:

property ownership in indonesia

  • Landed houses with Hak Pakai issued directly by the country or Hak Pakai:
  1. Hak Milik managed by Hak Pakai is a grant agreement relating to Hak Milik recorded in the PPAT deed.
  2. Hak Pengelolaan under land use agreement with the holder of Hak Pengelolaan.
  • Apartments built on plots of land where the land has the status of:
  1. HGB or Hak Pakai issued by the country directly
  2. HGB or Hak Pakai on land with the status of Hak Pengelolaan
  3. HGB or Hak Pakai on land with the status of Hak Milik

Expatriates are still restricted to owning residential or licensed buildings

Landed houses that have a positive impact on the economy and society are granted multiple plots of land, or an area of ​​more than 2,000 square meters, with the approval of the Minister. Landed house includes:

  • A house of the luxury residential category as stipulated by law
  • One lot for each individual or family
  • The lot area is 2,000 square meters

Decree No. 1241/SK/HK.02/IX/2022 specifies the type and price of purchase of a house, apartment or occupancy. Here are some written regulations:

  • Expat housing ownership is either a new house or unit or an old house or unit
  • Residential or commercial buildings for expatriates consist of land and/or apartment units that can be inherited by qualified heirs in the event of the death of the foreigner. It was used as collateral for an indebtedness to Hak Tanggungan and transferred to another party

The minimum price limits for apartment units and landed houses valid to each province throughout Indonesia.

For further information regarding the ownership property in Indonesia, you may visit LetsMoveIndonesia for assistance!

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