Can Foreigners Buy Property In Indonesia?

Exploring Property Ownership in Indonesia: A Guide for Foreigners

Ever wondered if you could own a piece of paradise in Indonesia? 🏝️ Well, you’re not alone. As a real estate expert, I’ve been asked this question countless times. So, let’s dive into the nitty-gritty of property ownership in Indonesia for foreigners.

Understanding the Indonesian Property Market

Indonesia, with its stunning landscapes and booming economy, has become a hotspot for foreign investors. However, the country’s property laws can be a bit of a maze. 🌀

Historically, foreigners were not allowed to own property in Indonesia. But, in 2015, the government loosened the regulations, allowing foreigners to own apartments under a ‘Right to Use’ (Hak Pakai) title. However, land ownership is still off-limits.

What is ‘Right to Use’ (Hak Pakai)?

Hak Pakai is a form of leasehold title that allows foreigners to own property in Indonesia. It’s valid for an initial period of 30 years, extendable by another 20 years, and then for another 30 years. So, in total, you could have rights to the property for 80 years! 🏠

But remember, this only applies to apartments and not to landed properties. For landed properties, foreigners can only lease them for a maximum of 25 years, extendable by another 25 years.

How to Buy Property in Indonesia as a Foreigner

Buying property in Indonesia as a foreigner involves a few steps:

  • First, you need to find a property that fits your needs and budget. You can do this through a real estate agent or online property portals.
  • Once you’ve found the perfect property, you’ll need to negotiate the price with the seller. This is where a good real estate agent can come in handy.
  • After agreeing on the price, you’ll need to sign a Sale and Purchase Agreement (SPA) and pay a deposit.
  • Next, the property’s title will be transferred to you, and you’ll need to pay the remaining balance.
  • Finally, the property’s title will be registered under your name at the local Land Office.

It’s important to note that all property transactions in Indonesia must be done in Indonesian Rupiah (IDR). So, you’ll need to open a bank account in Indonesia and transfer your funds there. 💰


Can foreigners buy freehold property in Indonesia?

No, foreigners cannot buy Freehold property in Indonesia. They can only own property under a ‘Right to Use’ (Hak Pakai) title or lease landed properties.

Can foreigners inherit property in Indonesia?

Foreigners cannot inherit property in Indonesia. If a foreigner is married to an Indonesian citizen and the Indonesian spouse passes away, the property must be sold within a year.

Can foreigners buy property in Bali?

Yes, foreigners can buy property in Bali under a ‘Right to Use’ (Hak Pakai) title or lease landed properties. However, they cannot own freehold property.


While Indonesia’s property laws may seem restrictive, they do allow foreigners to own property under certain conditions. With the ‘Right to Use’ (Hak Pakai) title, foreigners can own apartments for up to 80 years. And while landed properties are only available for lease, the lease period can be extended up to 50 years. So, while you may not be able to own a piece of land outright, you can still enjoy the benefits of property ownership in this beautiful country. 🌴

Remember, buying property in a foreign country can be complex, so it’s always a good idea to seek legal advice and work with a reputable real estate agent. Happy house hunting! 🏡

Kurby Team

The Kurby Content Team is a diverse group of seasoned real estate experts dedicated to providing insightful, reliable information for homebuyers, real estate investors, and real estate agents. With backgrounds ranging from real estate brokerage, property investment, and residential home buying, our team combines decades of experience with a passion for demystifying the real estate world. We at Kurby are committed to helping you make informed, successful real estate decisions. Whether you're a first-time homebuyer, a seasoned investor, or a real estate professional, count on the Kurby Content Team to deliver the most relevant, actionable real estate content you need.