Home Blog How Can Foreigners Buy Apartments in Jakarta? Business Setup | Land Property Ownership | PT PMA How Can Foreigners Buy Apartments in Jakarta? InCorp Editorial Team 30 October 2024 6 minutes reading time Table of Contents Can Foreigners Buy Property in Jakarta? Average Property Values in Jakarta Best Places to Buy Apartments in Jakarta How Do You Buy an Apartment in Jakarta as a Foreigner? Top Reasons to Use an Agent When Buying an Apartment in Jakarta Buy Apartment in Jakarta with InCorp Buying an apartment in Jakarta is a desirable choice for both foreigners and locals. Recognizing its potential, many foreign investors have turned to Jakarta’s real estate market, seeing it as an undervalued investment. With a large consumer base and an expanding middle-income population, Jakarta’s demand for property is climbing steadily and is expected to skyrocket in the coming years. For strategic investors, Jakarta offers an attractive market with strong prospects for future growth. Can Foreigners Buy Property in Jakarta? Yes, foreigners can buy property in Jakarta, though they must navigate specific regulations and restrictions. Current laws prevent non-citizens from owning real estate directly in their name anywhere in Indonesia. However, alternative options allow foreigners to enjoy property ownership benefits in the country. Foreigners can primarily obtain property through leasehold agreements, and several methods are available to facilitate this type of ownership. Average Property Values in Jakarta In Jakarta, the average price per square meter for residential houses is around IDR 18.3 million, IDR 25 million for commercial spaces, and approximately IDR 12.6 million for land. Property Taxes in Jakarta Before purchasing property in Jakarta, it’s crucial to be aware of the various taxes involved, which include: Annual land and building tax Rental income tax Land acquisition tax Transfer tax Corporate income tax Construction tax Document stamp tax Best Places to Buy Apartments in Jakarta Only some places in Jakarta are created the same for their property investment opportunities. To make the most of your money and find the best apartment in Jakarta, here are some locations you can consider when purchasing an apartment based on the major districts in the city. South Jakarta: Kebayoran Baru, Sudirman, Kuningan West Jakarta: the Chinatown, Tangerang North Jakarta: Kelapa Gading Central Jakarta: Menteng, Golden Triangle READ MORE:Protect Your Intellectual Property through Trademark Registration in IndonesiaCan a Foreigner Buy A Property in Indonesia Under Their Local Spouse’s Name? How Do You Buy an Apartment in Jakarta as a Foreigner? Like other parts of Indonesia, Jakarta doesn’t have favorable and transparent foreign purchase and ownership regulations allowing foreigners to buy apartments. In Jakarta, a foreigner can only buy new or established property, apartments, and condos. Foreigners can only lease or acquire the right to use the property by setting up a foreign-owned company, PT PMA, to buy an apartment in Jakarta. Foreign-Owned Company PT PMA Foreigners setting up a PT PMA in Jakarta can purchase a property with Hak Milik. To incorporate a PT PMA, foreigners must create a business plan, open a local bank account, inject investment capital, and run their business actively. Through Lease Agreement When you choose a leasehold title while buying a property in Jakarta, a lease agreement between you and your landlord is vital. A lease agreement must be legally signed and stamped, stating the rights and obligations of both parties during the stated lease period. Legal experts must draft and notarize the agreement officially and professionally. Here are some essential requirements and policies for foreigners looking to buy property in Jakarta: Foreigners must reside in Indonesia and hold a KITAP or KITAS to buy and maintain property. The minimum property price in Jakarta is IDR 10 billion (approximately $673,000) for a house and IDR 5 billion (around $340,000) for an apartment. Foreigners and their families can own only one property, with a maximum area of 2,000 square meters. The property must be purchased in cash or financed through a loan from an Indonesian bank. If a foreigner leaves Indonesia, they must transfer property rights to another eligible individual within one year of departure. The initial right of use is granted for 30 years, possibly extending it to 80 years. These regulations are in place to ensure that foreigners can invest in Jakarta’s real estate market while complying with Indonesian laws and policies. READ MORE:Essentials about Starting a Property Business in IndonesiaA Complete Guide to Property Tax in Indonesia Top Reasons to Use an Agent When Buying an Apartment in Jakarta Using a real estate agent in Jakarta is a wise decision, especially considering the challenges of navigating the property market. Therefore, enlisting the help of a real estate agent when looking to buy or rent an apartment in Jakarta is highly beneficial. Convenience and Access to Listings Due to Jakarta’s size and diversity, finding the perfect property can be overwhelming. Real estate agents provide significant convenience and access to many properties that meet your criteria. They have comprehensive listings from various agents and can quickly identify suitable options. Additionally, they can guide you to the best neighborhoods for your needs. If you’re selling a property, an agent can handle inquiries and appointments, saving you time and ensuring you get all potential buyers. Expert Negotiators Real estate negotiations can be complex, particularly when buyer and seller interests clash. Real estate agents serve as effective intermediaries, leveraging their negotiation expertise to facilitate smooth transactions. They can handle delicate issues, such as repair responsibilities, ensuring that both parties reach a satisfactory agreement. Assistance with Contract Review Property transactions often involve intricate contracts that confuse those unfamiliar with local regulations. Jakarta real estate agents possess the knowledge to review these contracts thoroughly, ensuring they protect your interests. They can advise you on necessary inclusions or exclusions and help clarify the implications of each clause. Identifying Risks and Potential Problems Experienced real estate agents in Jakarta can provide valuable insights into potential issues with a property. With their trained eyes, they can spot problems that might not be immediately apparent to newcomers, such as scams or structural issues that could lead to costly repairs. Save Time and Energy Buying or selling property in Jakarta can be time-consuming and stressful, especially in a bustling city. An agent can manage the entire process, working diligently to ensure everything runs smoothly. They keep you updated throughout, allowing you to focus on other priorities. Guide to Doing Business in Jakarta Mailchimp Free eBook Indonesia Business Insight Newsletter Full NameEmail I have read InCorp's Privacy Policy and agree to InCorp using my information provided to contact me about related content, and services.*Subscribe Buy Apartment in Jakarta with InCorp The Indonesian property market is thriving, with a continuous rise in demand for apartments and real estate. Partnering with a real estate agent simplifies your property search and enhances your investment journey in Jakarta. If you’re ready to explore the best options to buy an apartment in Jakarta, InCorp can assist you in navigating the complexities of buying or renting property in the city. Our expertise includes: Company Registration: We help you set up your business in Indonesia efficiently and compliantly. Land and Property Ownership: Our team provides tailored advice on property acquisition, ensuring you understand your rights and obligations. Fill out the form below to seize this valuable investment opportunity in Jakarta. Read Full Bio Verified by Ales Cina Consulting Manager at InCorp Indonesia Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights. Frequently Asked Questions Can you have a nominee arrangement when setting up PMA? A nominee arrangement is an arrangement that uses another person’s name as a subject. In Indonesia, it is prohibited. This restriction aims to prevent situations where a company is owned by one party but beneficially owned by another. According to the law, any nominee agreement between a local party and a foreign investor is deemed null and void. Can a PMA company hire expats in Indonesia? Yes, PMA companies in Indonesia can hire expatriates, but certain positions are restricted by the Ministry of Manpower. Expatriates need both working and stay permits, and employers must employ Indonesian counterparts for each expatriate employee, typically at a ratio of at least one Indonesian counterpart per expatriate. How do investors choose a holding jurisdiction for a PMA firm in Indonesia? Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia. Is it required to hire Indonesian staff in the PMA company? In Indonesia, the necessity of hiring Indonesian employees by foreign companies typically arises from commercial requirements, regulatory mandates in specific sectors like construction or shipping, or as part of employing foreigners to fulfill knowledge transfer obligations. Get in touch with us. Lead Form Subscribe Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Business Setup The Future of Manufacturing Industry in Semarang, Indonesia Read more Is The ESG Implementation Strategy Beneficial for Business? Read more 4 Mistakes You Need to Avoid When Going Through Company Set Up in Indonesia Read more