Can Foreign Citizens Buy a House in Indonesia?

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For foreign citizens or expatriates who live in Indonesia and want to buy a house, it turns out that Indonesian regulations allow this. So if foreign nationals plan to stay in Indonesia for a long time, and in financial terms it is more profitable to have their own house, they can buy it with the specified conditions. This has been officially stated in Government Regulation (PP) Number 13 of 2015 which regulates home ownership by foreigners domiciled in Indonesia.

What is worth paying attention to in these regulations includes, if the foreign citizen is no longer in or domiciled in Indonesia, then ownership must be transferred in accordance with the policy of the relevant minister. Even though it is allowed, not all foreigners are allowed to buy a house in Indonesia. There are a number of rules and requirements that must be met for this.

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Requirements and Rules that must be fulfilled

A number of strict rules have been made so that buying a house by foreign nationals does not cause problems in the future. The following are the requirements that foreign citizens must fulfill if they want to buy a house in Indonesia:

  • Have a KITAS (Limited Stay Permit Card), so this is the main requirement that must be met if you want to buy a house in Indonesia. This KITAS is issued by the Ministry of Law and Human Rights, which must be renewed periodically, namely every 2 years. To get your own KITAS, foreigners must actually work in Indonesia, so that from there you can see their motivation for buying a house.
  • Apart from the above, the type of house purchased is also determined, only certain types of houses can be purchased, namely shanty houses or flats, other than that it is not allowed.
  • The land you own or want to buy has a maximum area of 2000 square meters. and all such requirements must be in accordance with the laws currently in force.
  • The time limit for the right to use is also determined in the existing regulations, where the maximum time limit is 80 years as long as the foreigner still lives in Indonesia. In detail, the first use right is valid for 30 years, can be extended for 20 years, and can be renewed for another 30 years.
  • Purchase price limits are also regulated in existing regulations, and are classified according to the city where the house is to be purchased.

The Indonesian government makes it easy for foreign citizens to buy their own house to live in in Indonesia. This is also based on their need to have a permanent residence, so that they do not need to be bothered with this problem again while living in Indonesia, especially for a long period of time. Foreigners can freely determine where they want to own a house, whether in Jakarta, Bekasi or Bali and other places.

It’s just that there are regulations that must be adhered to in its implementation, including that the house cannot have ownership rights, HGU and HGB. However, this is certainly a relief for foreigners who are in Indonesia, because it has more or less fulfilled their need for a place to live in Indonesia.