How Is Foreign Property Ownership Law in Indonesia?
It’s not easy for foreigners to buy and own property in Indonesia. They have to fulfill some strict conditions before. Foreigners in Indonesia are defined as “citizens from other countries who are domiciled in Indonesia for working, investment, business purpose or provide benefits for Indonesia”.
Furthermore, the regulation on Property ownership for foreigners is stated in Government Regulation (PP) Number 103 issued at the end of December 2018, namely as follows:
Right of Use only
For foreigners who want to buy and own property in Indonesia, the Government can only allow them to own the Right of Use Certificate. It can be extended for 30 years, then renewed for another 20 years, and renewed again for 30 years. So the total years for the right to use for foreigners is approximately 80 years and can still be passed on to his heirs with a residence permit.
The transfer is evidenced by a statement from the Minister of Law and Human Rights/Director General of Immigration,
Having KITAS
Based on Government Regulation Number 103 Article 2 paragraph 2, it’s stated that foreign citizens are allowed to buy property in Indonesia if they have had a residence permit issued by the Ministry of Justice and Human Rights. This limited residence permit is known as KITAS and can be extended every 2 years. To get it, they have to work in Indonesia first.
Only Residential Houses or Apartments
Not all types of property can be purchased by foreign citizens. Only residential houses and apartments are open for them.
Marrying an Indonesian Citizen
The last requirement for foreigners who want to buy property in Indonesia is to marry an Indonesian citizen. Yes, with a marriage, foreigners can have the opportunity to become an Indonesian citizen. In addition, they have to include the purchased property in a premarital agreement, because it would be a joint asset for them and their respective spouse.
Those are the conditions that must be met by foreigners in order to buy property in Indonesia. Even so, they can still occupy rental resident such as Apartemen Selatan in Kemang to support their activities.
