How Can Foreigners Buy Apartments in Jakarta?

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 and buy apartment Jakarta.

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 Indonesia
• Can 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.

Step-by-Step Process to Buying a Jakarta Apartment as a Foreigner

Buying an apartment in Jakarta as a foreigner is entirely possible—but it requires careful navigation of Indonesia’s property laws, investment regulations, and bureaucratic processes. This step-by-step guide will walk you through everything you need to do to secure legal ownership through the appropriate title and structure.

Step 1: Ensure Eligibility for Foreign Ownership

Before you begin the buying process, confirm that you meet the key legal requirements:

• You hold a valid KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit).
• You’re purchasing a property classified for foreign ownership, typically under a Hak Pakai title.
• The apartment you’re interested in meets the minimum value requirement (e.g., IDR 5 billion in Jakarta).

Without these, your purchase will not be considered legal.

Step 2: Choose the Ownership Structure (Personal or PT PMA)

Foreigners can buy property either:

• Individually, using the Hak Pakai title, or
• Through a foreign-owned company (PT PMA) for commercial investments.

If you’re buying for personal residence, Hak Pakai is the usual route. For business-related or large-scale acquisitions, a PT PMA may offer more flexibility—but it comes with higher setup costs and reporting obligations.

Step 3: Conduct Due Diligence on the Property

Hire a notary or licensed legal consultant to verify:

• The property’s legal status and title.
• Developer’s credibility or individual seller’s rights.
• Compliance with foreign ownership regulations.
• Outstanding taxes, encumbrances, or disputes.

Skipping this step can result in future legal complications or financial loss.

Step 4: Sign the Sale and Purchase Agreement (AJB)

Once due diligence is clear, sign the AJB (Akta Jual Beli) with the seller. This document must be:

• Drafted and witnessed by a public notary.
• Based on full agreement of sale terms, price, and timeline.
• Recorded with both parties’ valid documentation (including KITAS/KITAP for foreigners).

The notary will register the transaction with the National Land Agency (BPN).

Step 5: Pay Taxes and Government Fees

You’ll be required to pay:

• BPHTB (Land and Building Acquisition Duty): Usually 5% of the sale price.
• Stamp Duty and Notary Fees: Typically 1–2% of the transaction.
• The seller will pay income tax (PPh), but clarify who bears which costs in your agreement.

Keep all payment receipts and documentation for BPN registration.

Step 6: Register the Property and Receive the Hak Pakai Certificate

The notary will submit your documents to the BPN office for:

• Registration of ownership.
• Issuance of the Hak Pakai title certificate under your name or company.

This process can take a few weeks, depending on the administrative workload.

Step 7: Plan for Renewal and Succession

Remember, Hak Pakai is not indefinite. It comes with an initial term of 30 years, extendable up to 80 years. You must apply for renewal before the expiration date.

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.

READ MORE:

• Tips for Selecting a Reliable Property Agent in Bali
• Comprehensive Guide to Business Opportunities in Jakarta
• Moving to and Living in Jakarta for Foreigners: A Guide

Hak Pakai vs. Hak Milik: Understanding Your Property Rights in Indonesia

When it comes to real estate ownership in Indonesia, understanding the difference between Hak Pakai and Hak Milik is crucial—especially for foreigners looking to invest in property. These legal land titles define your ownership rights, duration, and limitations, and they can directly impact your ability to buy, sell, or lease property in Indonesia.

What is Hak Milik (Right of Ownership)?

Hak Milik is the strongest and most complete form of land ownership in Indonesia. It is equivalent to freehold title in many other countries. Holders of Hak Milik enjoy full rights to sell, lease, transfer, or bequeath the property without time limitation.

However, Hak Milik is exclusively reserved for Indonesian citizens. Foreign nationals are strictly prohibited from owning land or property under this title, even through marriage or long-term residency. Attempting to register property under a local proxy (nominee arrangement) is both risky and illegal, and it can result in the property being seized.

What is Hak Pakai (Right to Use)?

Hak Pakai is the only legal title that allows foreigners to hold property rights in Indonesia. It is a leasehold arrangement granted by the state, which provides the right to use and occupy a property for a fixed duration.

Under Indonesian law, Hak Pakai titles can be issued for:

• An initial term of 30 years,
• Extendable by 20 years, and
• Renewable for another 30 years—totaling up to 80 years of legal use.

Hak Pakai is applicable only to certain types of properties, typically apartments or land built on state-owned land designated for foreign ownership. It must be registered with the National Land Agency (BPN) and be compliant with the minimum investment thresholds (e.g., IDR 5 billion in Jakarta for apartments).

Key Differences Between Hak Milik and Hak Pakai

Feature	Hak Milik	Hak Pakai
Ownership Type	Freehold (full ownership)	Leasehold (right to use)
Eligible Parties	Indonesian citizens only	Foreigners and legal entities
Duration	Indefinite	Up to 80 years (with extensions)
Transferability	Freely transferable	With restrictions and approval
Resale Value	Typically higher	Lower due to time limitations

Why This Matters for Foreign Buyers

If you’re a foreign investor planning to buy an apartment in Jakarta or anywhere else in Indonesia, you must pursue a Hak Pakai title. This ensures you remain compliant with national property laws and avoid any legal complications.

Choosing the right title not only affects your ownership rights but also your ability to secure a mortgage, transfer the property, or pass it on to your heirs. Always conduct due diligence and consult with legal experts to validate the title and ensure proper registration.

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.

Frequently Asked Questions