Regulations for foreign nationals owning property in Indonesia

Indonesia, a country made up of archipelagos, has undoubtedly become a target for investment in many aspects of the world, and one of the interesting investments is real estate investment.Basically Indonesia's property law restricts the ownership of property by foreign nationals (WNA), however there are programs that allow foreigners to own property in Indonesia with certain restrictions and conditions.As a foreigner, you must first obtain a residence permit in Indonesia, i.e. hold a Limited Residence Permit Card (KITAS), before you can purchase a property in Indonesia. This is intended to provide an incentive for foreigners to purchase property not only as an investment but also for residential purposes. Foreigners are only allowed to purchase landed houses and apartments. A landed house is defined as a house built on a limited area of land, also known as a landed house with a maximum area of 2,000 square meters, while a condominium means that foreigners can only opt for commercial types of properties. The status of land and building ownership that foreigners can acquire in Indonesia is limited to the right of use, leasehold, condominium or residence ownership. Foreigners are not allowed to control land with ownership, HGU and HGB. If a foreigner acquires these three rights, he or she must relinquish them within one year or they will be revoked by law and placed under the control of the State.

The duration of the foreigner's right to use a single house granted on land where the right to use is valid for 30 years has a time limit and can be extended for 20 years, and at the end of the extension period, the right to use can be renewed for another 30 years, so that the maximum period is 80 years as long as they have an Indonesian residence permit. The minimum residential price limit for foreigners varies depending on the location of the property, which is stipulated in Decree No. 1241/SK of the Minister of Land Affairs and Spatial Planning/Head of the National Land Agency. Based on the above explanation, it can be concluded that not only Indonesian citizens (WNI) but also foreign nationals (WNA) in Indonesia are permitted to purchase property, subject to the applicable terms and conditions stipulated in Indonesian laws and regulations. The regulations governing the ownership of property by foreigners in Indonesia change frequently and vary from region to region or province to province, and individual properties may have different requirements.