Property in Indonesia

Indonesia is an attractive destination for real estate investment due to its dynamic economic growth, growing middle class, increasing urbanization, favorable tax policies, strong tourism industry and great potential for capital appreciation. Whether you are an experienced real estate investor or just starting out, Indonesia offers numerous opportunities for successful real estate investments.

Bali: Bali is a tourist paradise with beautiful beaches, cultural attractions and diverse nature. Villas and apartments for vacation and rental are very popular here.
Jakarta: As the capital of Indonesia, Jakarta offers a variety of business and investment opportunities. Districts such as Sudirman and Kemang are centers of economic activity.
Jakarta: Jakarta is a huge city with cultural and commercial opportunities. It offers a wide range of accommodation, including apartments and houses.
Lombok: This island is a draw for those seeking tranquility and beautiful natural scenery. Here you will find beach villas and secluded areas.
Gili Islands: These small islands near Lombok are also popular with tourists and investors. They offer beautiful beaches and the opportunity to rent houses.
Bandung: Bandung is located in the mountains and offers a cool climate and beautiful nature. Here you can find country houses and secluded properties.

Hak Milik ("full ownership"):

• Civil law: Only Indonesian citizens have the right to own land.
• Foreigner regulation: Foreigners can make use of this regulation by concluding a notarized loan agreement with a local and thus acquiring the property. However, the actual owner remains a local.

Hak Pakai ("right of use"):

• Requirements: A work visa for Indonesia (KITAS) is required.
• Restrictions: Can only be applied for a single plot of land not larger than half a hectare.
• Certificate: Upon purchase, the foreigner receives an individual certificate guaranteeing unrestricted use of the land or house for an initial period of 30 years, which can be extended up to 80 years.

Hak Guna ("right to build"):

• For companies: Suitable for companies established in Indonesia.
• Holding period: The company is entitled to ownership for a period of up to 30 years, which can be extended up to 80 years.
• Sale and transfer of rights: The company has the right to sell the land or property and transfer the rights to others.

Hak Seva (form of ownership by lease):

• Lease agreement: a regular lease agreement is made, which is often notarized but does not require registration with the authorities.
• Leasehold rights: The lessee is allowed to use the property for a certain period of time according to the terms of the contract.

These different types of property rights offer a variety of options for foreigners who wish to acquire property in Indonesia. It is important to consider the requirements, restrictions and expiration dates when choosing a particular type of property.

Currently, foreigners in Indonesia can acquire usage rights, building rights or rental rights for the following types of real estate:
Houses without government subsidies: Foreigners can purchase houses that have not been subsidized by the government.
Strata-titled apartments: Ownership of Strata-registered apartments is also possible for foreigners.
Freehold land: It is possible to acquire freehold land with subsequent construction of a house if appropriate arrangements are made with the title holder.
However, it should be noted that Indonesian property regulations are stricter compared to some neighboring countries such as the Philippines and Thailand.
Currently, foreigners can purchase condominiums and structures such as villas based on title deeds. It is important to note that you do not have to be a resident to own property and that it is becoming easier to obtain a long-term visa.

1. Property inspection: An important step is the thorough inspection of the selected property to ensure that it is legally clean and free of debts. This phase is usually entrusted to a real estate agent. After a thorough inspection of the data and tax payment receipts, the parties submit the necessary documentation to the official responsible for registering the land registry entries.
2. Preparation of a conditional sale contract: the seller and buyer sign a conditional sale contract (CSPA) before transferring the property. The CSPA is often seen as a preliminary contract for the lease of the land for a longer period of time. In some cases, an advance payment may be required.
   Completion of the purchase contract: The buyer and seller sign the purchase contract at the office of Pejabat Pembuat Akta Tanah, the person in charge of the land documents.
3. Payment of the balance: This stage takes place immediately after the contract is signed. The parties decide how to carry out the financial transactions according to their individual agreements.
4. Registration of title: A certificate of transfer of the long-term lease and the corresponding documents are drawn up within seven days of the completion of all phases. The transaction can be completed remotely by granting a power of attorney to a lawyer.

1. Real estate transfer tax (5 %): This 5% tax is mandatory for both buyers and sellers. It is levied on the transaction amount and must be included in the total cost of purchasing the property.
2. Sale of land (1%): 1% of the value of the land is levied on the buyer. This payment is intended to regulate the transfer of real estate.
3. Lawyer's fee (0.5%-1.5%): The lawyer's fee, which ranges from 0.5% to 1.5%, is responsible for carrying out the legal procedures and preparing the transaction documents. This is an important part of the process and is paid by the buyer.
4. Registration fee (0.2%): A registration fee of 0.2% is charged for the registration of property deeds. This fee is also payable by the buyer.
5. Estate agent's commission (5%): A commission of 5% is charged for real estate services, including the search and execution of the transaction. This amount is payable by the buyer.
6. Notary services (1%): The buyer also pays a notary fee of 1%, which includes the preparation of official documents and notarization of the transaction.

In conclusion, it is important to thoroughly research all aspects of the local real estate market, including legal regulations, tax obligations and visa types, in order to successfully complete a transaction. With a variety of property options such as Hak Pakai, Hak Guna Gunan Bangsa and Hak Milik, investors can choose the right option for their needs and plans. It is always advisable to consult local experts and official sources to ensure a successful and safe real estate transaction in this amazing country.