How to Buy Property in Indonesia: A Foreigner's Guide

Under the new rules, foreigners can buy property in Indonesia only with a passport.

Foto: (Jakarta) – The government has issued a number of rules to facilitate ownership of property for foreigner and expatriate (WNA).

Some rules that support include Government Regulation Number 18 of 2021 on Management Rights, Land Rights, Stacking House Units, and Land Registration; and Regulation of Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (ATR/BPN) Number 18 of 2021 on the Establishment of Management Rights and Rights of Land.

Under the new rules, foreigners can buy property in Indonesia only with a passport.

Read More: Greater Jakarta Landed Residential: Tangerang Dominates New Supply

Each area has minimal restrictions on purchasing property by foreign parties. In Jakarta, for example, the minimum house price that must be purchased is IDR5 billion.

While in the city of Batam, the price of landed houses that can be purchased by foreigner starts from IDR2 billion.

Referring to Guidelines on Foreigners’ Property Ownership in Indonesia, here are the procedures for purchasing property in Indonesia for foreigners.

Read More: Empowering The Real Estate Sector: Harnessing Energy Efficiency

1. Prospective buyers contact the seller for purchase by signing the Sale and Purchase Agreement for Land and Building (PPJB).

2. The signing of PPJB is carried out before the Land Deed Making Official (PPAT).

3. Buyer makes Value Added Tax (VAT/PPN) and Fee for the Acquisition of Rights on Land and Buildings (BPHTB).

Read More: Impact of Global Property Market on The Indonesian Property Market

4. Next, the certification process will be carried out by a notary to the National Land Agency (BPN).

5. To purchase a landed house, the Right of Ownership/Right to Build (HGB) certificate must be changed to a Right to Use certificate. Meanwhile for stacking house units, the ownership certificate for the stacking house will be processed.

6. Property ownership certificate can be used as Temporary Stay Permit (ITAS)/ Permanent Stay Permit (ITAP) Proof of Fund in the purchase of Second House.

That's how foreigners buy property in Indonesia.

Read More Interesting News and Articles on Google News

Berita Terkait

Shanghai, China (Foto: Dok.
Shanghai, China (Foto: Dok.