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Property Regulations

  /  Property Regulations

Property Regulations

Foreign nationals may acquire certain property rights in Indonesia, subject to eligibility requirements and restrictions. Relevant rules include Government Regulation No. 18 of 2021 and its implementing regulations.
Available arrangements may include:
  • Ownership of a qualifying house under Hak Pakai (Right to Use).
  • Ownership of a qualifying apartment unit under the applicable strata-title rules.
  • A lease agreement granting contractual rights to occupy or use a property.
Foreign individuals cannot purchase land under Hak Milik freehold title or directly hold Hak Guna Bangunan. An eligible Indonesian company, including a PT PMA, may hold Hak Guna Bangunan subject to the applicable requirements.
Building checks should cover the required PBG or a valid existing IMB, together with the applicable SLF.

 

PURCHASING AN APARTMENT OR OFFICE UNDER STRATA TITLE

Eligible foreign nationals may acquire qualifying apartment units under Indonesia’s current strata-title rules. Eligibility depends on the buyer’s immigration documents, the development’s underlying land rights and applicable property restrictions.
Residential apartment ownership and commercial office premises require separate legal assessment. Before purchasing, verify the unit’s title, permitted use and whether the proposed ownership structure is available to the buyer.

CONVERTIBLE LEASE AGREEMENT

A convertible lease agreement may contain a contractual provision for a future title transfer if legal requirements are satisfied. It does not itself give the foreign lessee registered ownership or guarantee that a transfer will become possible.


Before signing, obtain independent legal review of the developer’s title, the lease term, payment protections, transfer conditions and remedies if the transfer cannot proceed.


If you are interested in purchasing an condominium through this type of agreement, investigate the property management company thoroughly. Check the developer’s financial position, construction progress and ability to meet its contractual obligations. Show your contracts to a bona fide lawyer to ensure that all legal implications are covered thoroughly.

Using an Indonesian nominee does not give a foreign buyer lawful ownership of the property. Nominee arrangements must not be used to bypass restrictions on foreign ownership.

SINGLE-FAMILY DWELLINGS

Foreign nationals cannot purchase Hak Milik freehold land. Depending on eligibility and the property, a house may be acquired under Hak Pakai or occupied under a lease. A lease grants contractual rights for its agreed term and does not transfer freehold ownership.

BUYING LAND

Foreign individuals cannot purchase land under Hak Milik freehold title. A nominee agreement, including one signed before a notary, does not override this restriction or make the foreign party the lawful landowner.
Obtain independent legal advice on permitted property rights and lease arrangements before paying a deposit or signing an agreement.

Properties in Jakarta also require checks of the applicable land-title conditions, spatial planning and building approvals.

SPECIAL PROVISIONS FOR BATAM

Property transactions in Batam require checks of the applicable national ownership rules and BP Batam’s land-management requirements. Eligibility depends on the buyer, the property title and the proposed use. Do not assume that Batam’s special status permits unrestricted foreign freehold ownership.