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Buy a Property in Indonesia 

Buy a Property in Indonesia 

Our agents specialize in assisting foreigners in navigating the complexities of buying a Balinese house. With knowledge of local laws, regulations, and market dynamics, they provide guidance at every step of the process.

Circular Letter IMI-0820.GR.01.01 of 2022 governs the acquisition of property in Indonesia by foreign citizens. This regulation offers clarity and convenience to investors seeking to buy a house in Bali as foreigners. Please get in touch with our company formation agents in Indonesia for assistance. 

Can foreigners buy property in Indonesia?

Foreigners can acquire property in Indonesia through leasehold agreements, entailing the leasing of land for a designated period, typically 30 years with an option for renewal for an additional 30 years.

However, full ownership rights (Hak Milik) of land are not attainable by foreigners due to legal restrictions. This limitation serves multiple purposes, including safeguarding Indonesian land from extensive foreign ownership and ensuring its utilization for the collective benefit of Indonesian citizens.

Despite the prohibition on full land ownership, foreigners can still secure land use rights through leasehold arrangements. This grants them the authority to utilize the land for a specified duration, including construction and development activities. If you want to buy a house in Indonesia as a foreigner, our agents can assist you. 

Second home visa and second homestay permit in Indonesia

Foreign citizens seeking property ownership in Indonesia must apply for a second home visa and a second homestay permit. Our immigration lawyers in Indonesia can file a related application for you addressed to the designated Immigration Officer appointed by the Directorate General of Immigration. Essential requirements for the application include a valid passport, a recent photo with a red background, and evidence of financial capability amounting to Rp. 2,000,000,000 or proof of property ownership in Indonesia. The issuance process, conducted electronically, involves stages such as account registration, data submission, document upload, and PNBP payment. 

Upon issuance, the second home visa and stay permit come with predetermined validity periods. Holders of the second homestay permit must furnish original proof of fund documents, like bank statements or property ownership certificates, within 90 days from permit issuance, while this reporting obligation does not extend to dependents.

If you are searching for a house to buy in Indonesia free of any encumbrances, our lawyers can assist you.

Requirements for foreigners buying property and obtaining visas in Indonesia

Foreigners seeking to purchase property in Indonesia must possess a valid passport and obtain a Hak Pakai title, which serves as the leasehold title for properties in the country. Additionally, they are required to pay all relevant taxes and fees associated with property ownership. 

Moreover, depending on their nationality and purpose of stay, foreigners may also need to secure a visa or residency permit to reside in Indonesia. For instance, those married to Indonesian citizens may qualify for a spousal visa, while retirees with a specified income level may apply for a retirement visa. Similarly, individuals employed in Indonesia may be eligible for a work visa.

It’s crucial to acknowledge that the processes of buying a Balinese house and visa procurement in Indonesia can be intricate and time-intensive. For immigrating to Indonesia and streamlining the visa application process, our team of experts is at your service. They can also offer you a step-by-step guide to buying a Balinese house.

Overview of the real estate market in Indonesia

If you are planning to buy land in Bali, you should have a look at the facts given below: 

  • Real estate market size is estimated at USD 64.78 billion in 2024, projected to reach USD 85.97 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 5.82% during 2024-2029;
  • Gross domestic product (GDP) from real estate activities in Indonesia recorded at IDR 468.22 trillion (USD 29.85 trillion) in 2021, as per Statistics Indonesia;
  • Ministry of Public Works and Public Housing (PUPR) reported approximately 312,290 housing units constructed under the One Million Houses program by the end of May 2021;
  • Residential property market in Indonesia exhibited stability, with the composite-16 property price index increasing by 1.74% in 2023, following year-on-year growth rates of 2% in 2022, 1.47% in 2021, 1.43% in 2020, and 1.77% in 2019, according to Bank Indonesia.

Besides assisting you with buying a house in Jakarta, we can also assist you in other matters. Our team provides expert assistance in navigating the complexities of company incorporation in Indonesia. From selecting the appropriate business structure to fulfilling legal requirements, we offer comprehensive support to set up a company in Indonesia

Also, our accounting services cover a wide range of financial tasks, including bookkeeping, financial reporting, payroll processing, and tax compliance. You are welcome to consult our accountants in Indonesia for assistance. 

Contact our Indonesian lawyers to learn more about our services. Upon contacting, we can guide you on the process of buying land in Indonesia.