Indonesia buying guideForeigners cannot own freehold land in Indonesia. That single fact shapes every purchase, from a Bali villa to a Jakarta apartment. What is available is Hak Pakai (right to use), long leases, strata title for apartments and company structures, each with its own rules. This Indonesia property buying guide explains them and warns about the nominee shortcut. Browse listings on our Indonesia page.
The four legal routes
Indonesian freehold (Hak Milik) is reserved for Indonesian citizens. Foreigners have these options:
- Hak Pakai (right to use). Available to foreigners who hold a valid residence permit such as a KITAS or KITAP. It is granted for an initial 30 years, extendable in steps, with sources citing a cumulative maximum of up to 80 years. It covers a house or apartment and is limited to one dwelling per foreigner and family, with land size caps for houses.
- Apartment ownership (Hak Milik atas Satuan Rumah Susun). Strata title units in buildings built on the right type of underlying land are open to foreigners within the same minimum-price rules.
- Leasehold (Hak Sewa). A private contract with an Indonesian landowner for typically 25 to 30 years, sometimes with extension options. Very common for Bali villas. It is a contractual right, so the quality of the lease and the landowner matter.
- Foreign-owned company (PT PMA). A company can hold Hak Guna Bangunan (building rights) and is used for business-linked property, though it brings tax, reporting and capital obligations.
The nominee arrangement, where an Indonesian holds title on your behalf, is widely marketed and legally risky. Courts and authorities treat these as unenforceable, and the nominee can legally claim the land.
Minimum prices for foreign buyers
Indonesia sets minimum prices for property that foreigners can acquire, varying by province and property type. Sources disagree on the numbers: landed houses in Jakarta are cited from IDR 5 billion to IDR 10 billion, apartments from IDR 2 billion to IDR 3 billion depending on city, and Bali and Yogyakarta have their own lower brackets. The authoritative reference is the ministerial decree on minimum prices (Kepmen ATR/BPN 1241/2022), which may have been updated, so ask a notary to confirm the figure for your province and type before signing a reservation.
The practical effect is that very cheap homes are off limits to foreigners, regardless of how affordable they look on a portal. Our Indonesia cheap listings may include properties foreigners cannot legally buy, which is a reason to ask first.
Process with a notary
- Choose the legal structure before choosing the villa. A great view on land that cannot be held by you is not a deal.
- Hire an independent notary (PPAT) and a lawyer. Do not use the seller's notary alone.
- Verify the land certificate at the National Land Agency (BPN/ATR), including type of title, owner, size, encumbrances and zoning.
- Check zoning and permits. The building approval (PBG, formerly IMB) and function certificate (SLF) matter for villas and tourist rentals.
- Sign a preliminary agreement (PPJB) with a deposit.
- Sign the deed (AJB) before the PPAT and pay taxes.
- Register the transfer or right at the land office.
- Obtain the new certificate in your name or your company's.
For leasehold, the lease is also notarised, and ideally accompanied by a right of first refusal, a clause on sale and a power to register an extension.
Taxes and costs
Costs add up to a noticeable share of price. Treat the figures as approximate and verify locally.
| Cost | Approx. level | Notes |
|---|---|---|
| Acquisition duty (BPHTB) | Up to 5% of value after a deduction | Paid by buyer; local rules |
| Seller's income tax on sale | Around 2.5% of price | Normally seller |
| VAT on new builds | 11% in many cases | Developer sales |
| Notary or PPAT fees | Around 0.5 to 1% | Scaled by price |
| Land registration | Fixed fees | Per title |
| Annual land and building tax (PBB) | Low percentage of assessed value | Local |
| Leasehold tax | Tax on lease payments | Check with a notary |
Residence, banking and finance
Hak Pakai requires a valid residence permit. Indonesia has also introduced longer-stay visa options for investors and second-home holders in recent years, with various investment or deposit thresholds, but we could not verify current numbers, so check with immigration. Owning a property does not itself confer residence.
Foreigners holding Hak Pakai can mortgage property with Indonesian banks, though lending is limited and conservative. Most foreign buyers pay cash. Our Indonesia financing page explains what banks require.
Types behave differently. Villas are usually leasehold on private land, apartments can be strata, houses fit Hak Pakai, commercial property often needs a PT PMA, and land is where foreign buyers face the most restrictions. See the Indonesia analysis for market context.
Where buyers get burned
- Signing a nominee agreement and relying on a side letter.
- Paying the full lease up front for 25 years without protective clauses.
- Buying a villa with no tourism or building permit and then being unable to rent it out.
- Ignoring community and customary land (adat) claims in parts of Bali and Lombok.
- Using one notary for both sides.
- Overlooking that agricultural land (sawah) cannot be built on.
Explore more markets in the consultation index, or budget options under 100k.
Last updated 8 October 2026
Frequently asked questions
Can foreigners own land in Indonesia?
Not freehold. Foreigners can hold Hak Pakai (right to use) on a dwelling, long leases, strata-title apartments, or building rights through a foreign-owned company.
What is Hak Pakai?
A right to use property granted for an initial 30 years and extendable, with a cumulative maximum often cited as up to 80 years. It requires a valid residence permit and covers one dwelling per foreigner and family.
Is the nominee structure legal?
It is widely used but legally risky. Indonesian authorities and courts treat such arrangements as unenforceable, and the nominee may be the legal owner in practice.
Is there a minimum price for foreign buyers?
Yes, set by province and property type. Sources give different figures, so ask a notary to confirm the current amount from the ministerial decree.
How long is a typical lease in Bali?
Commonly 25 to 30 years, with extension options negotiated up front. The quality of the lease contract and the landowner's title are what protect you.
Do I need a residence permit to buy?
For Hak Pakai yes, because the law links the right to foreigners with residence. Leasehold does not require it, but you should still obtain advice on visas.