The procedure of acquiring property in Bandung as a foreigner may sound complex. This is because it used to be filled with bureaucratic obstacles that crippled businesses, especially entrepreneurs from small businesses.
However, foreigners do not have to feel this way anymore, thanks to the recently implemented policy to encourage foreign investments, as well as the rising property market in Bandung.
The increasing demand for real estate in Bandung from year to year has transformed the city into one of the largest property markets in Indonesia.
As a result, Bandung has developed into one of the main investment heavens in the property segment for developers and builders, housing agents, both locally and internationally.
Furthermore, the development of property in Bandung is no longer concentrated in the city center.
Being a tourism and educational hotspot, Bandung’s property development has further propagated into suburbs of the city with affordable housing, targeting both foreign investors and end-users.
Moreover, with the support of a range of transportation infrastructure development, for example, the Jakarta-Bandung fast train project and the Jakarta-Cikampek toll road construction, the market of property in Bandung is destined to get ahead substantially.
One of the several firms that have contributed greatly to the property market in Bandung is the PT Indostar Perdana. Indostar invested in the Allegria Apartment project starting in February 2020, which is worth more than IDR200 billion.
Ways to Acquire Property in Bandung Legally for Foreigners
Knowing your options to own property can make sure that the process of your property acquisition is a smooth and fast one.
Starting a foreign-owned company, or a PT PMA, permits foreigners to apply for a Hak Milik for their property acquisition.
This company structure is the most common one for foreigners in Bandung, and property acquisition through PT PMA provides the greatest protection for foreigners.
Foreigners can then get a Hak Pakai to acquire property in Bandung under the local structure through a legally registered company providing the services.
A Hak Pakai has the following conditions:
- For residential properties only
- Foreigners must have lived in Bandung for a significant period to be eligible
- Each foreigner can only have one Hak Pakai
- A KITAS is mandatory for foreigners to get a Hak Pakai
- Maximum property size is 5,000 square meters; the maximum size is allowed at 7,000 square meters upon legal approvals
- The land under this permit is controlled and regulated by the Indonesian government
- The land under this permit is registered with the land office
How Cekindo Can Assist
The property market in Bandung is thriving, where the residential market for foreigners has seen ongoing growth.
Cekindo offers assistance to foreigners to secure the most-suited property through legal agreement drafting, permit application, and legal consultancy. The services Cekindo offers to its clients are among the best available in the region.
Cekindo supports its advice for owning your property in Bandung via research-led insights and legal expertise. We make certain that we provide the most unbiased and most up-to-date market acumen for your property purchase in Bandung and across Indonesia.
On top of that, we consistently practice transparency and due diligence based on the national and international standards when helping our clients acquire their homes in the Indonesian property market.
Reach out to us by filling in the form below.