Guide to Property and Land Investment in Malang

Guide to Property and Land Investment in Malang

  • InCorp Editorial Team
  • 15 May 2023
  • 5 minute reading time

Malang and Batu, located in East Java, Indonesia, are rapidly emerging as prime destinations for property and land investment. As a result, the region shows growth potential to attract local and foreign investors.

Therefore, many are looking to capitalize on the numerous opportunities available, ranging from residential to commercial and industrial properties.

Why Should You Invest in Property and Land

Guide to Property and Land Investment in Malang

Investing in the land offers several advantages, including appreciation in value over time, a hedge against inflation, and potential tax benefits.

Additionally, the land investment allows investors to hold on to the property for an extended period without worrying about repairs, renovations, or tenant turnover. 

Another advantage of investing in land is the potential for development. However, the land investment will require little maintenance compared to other real estate investments like rental properties. 

Land in its natural state can be converted for various purposes, including residential, commercial, or industrial, and owning it gives investors a valuable asset to pass down to future generations.

Read more: The Growing Potential of Property Investment in Surabaya

Overview of The Property and Land Market in Malang and Batu

Guide to Property and Land Investment in Malang

The real estate market sector has seen significant growth over the years, driven by population growth, urbanization, and economic development. This growth is evident in the increasing property demands. 

The demands of housing, commercial properties, and infrastructure development increased property values and sales. Additionally, technological advancements have made real estate transactions more efficient, further fueling the industry’s growth. 

Other than that, sustainable and eco-friendly buildings are on the rise. It’s embracing green technologies and practices to develop a new market for sustainable communities. 

Overall, the real estate market sector continues to experience growth and shows excellent potential for future expansion.

Real Estate Development in East Java

Indo Jaya Property’s Samaview Residence project is a prime example of land investment expansion. Located in Tawangargo Village, Karangploso District, Malang Regency, the project presents a lucrative investment prospect for real estate in East Java.

The CEO of Indo Jaya Property, Grace Tagore, believes that the potential for property investment in Karangploso, Malang, is very promising, as it has become a gateway for tourism and business to Malang and Batu. 

The area surrounding the Samaview Residence project is considered a potential tourist destination due to its beautiful scenery and easy access to transportation, making it an attractive location for buyers looking for a passive income investment opportunity. 

As a result, Batu has become an ideal location for investment in tourism, including hotels, resorts, and restaurants. 

Samaview Residence is on track to be finished by the end of 2024, and the project has already sold more than 200 units, with most buyers hailing from the East Java region.

Prospecting The Potential of Property and Land Investment in Malang

The Malang city government aims to attract investments worth IDR 4 trillion in 2023. The government has set a target to attract investments from various sectors such as infrastructure, tourism, and industry. 

The city government is collaborating with the private sector to achieve this target and has been conducting roadshows to promote investment opportunities in Malang. 

The government also provides various incentives, such as land tax discounts and simplification of the investment permit process. These efforts have been well-received by investors. 

The city’s strategic location, availability of skilled labor, and supportive business environment make it an attractive destination for investment.

The Current and Future State of The Land and Property Market

Seventy-six business owners have invested Rp 700 billion in various sectors in Malang. Most investments are in the property, housing, and apartment sectors, indicating potential for economic growth. 

However, aside from that, the sector of healthcare and transportation has also seen exponential growth and is expected to continue growing. The investment is expected to create job opportunities and boost the city’s economy. 

The Malang city government has expressed appreciation for the investors and their commitment to developing the city and providing support to ensure the success of the investment projects.

The Government’s Facilitation of Investment Opportunities in Batu

The local government of Batu has emphasized the importance of providing a conducive environment for investors to do business in the city. The Mayor of Batu, Dewanti Rumpoko, stated that a comfortable investment climate is essential to attract investors and encourage them to expand their businesses. 

She urged her administration to provide various facilities and services to support investors, such as simplified investment procedures, fast licensing services, and infrastructure improvements. 

Streamlining processes to provide greater ease to investors will positively impact the number of foreign investments made in the Batu region.

Read more: 6 Ways To Manage a Leased Property in Bali

6 Ways to Invest in Property and Land 

These investment opportunities offer different levels of authority and control over the land and can suit a range of investment goals, from buying and selling properties to earning rental income.

  1. Right of Ownership: Only for Indonesian citizens, grants the highest authority over land with no expiration date.
  2. Right to Build: 30-year term (extendable 20 years), only for legal companies incorporated under Indonesian law and citizens.
  3. Right to Cultivate: Authority over farming, animal raising, and fishing, valid for 35 years for legal entities and 25 years for individuals (extendable 25 years).
  4. Right to Use: Authority to use goods gathered from the state or another’s land, available to foreigners, citizens, and mixed ownership businesses.
  5. Leasehold Right: Utilize non-owned land through a leasing agreement, with rent paid to the owner.
  6. Right of Land Clearing & Collect Forest Products: Clear land and collect materials and goods from the property’s forest.

How InCorp Indonesia Can Assist

Investing in property and land in Malang can be lucrative, but navigating the legal and bureaucratic requirements can be challenging. 

InCorp Indonesia (formerly Cekindo) offers a streamlined process to help investors with land and property ownership and business licensing in Malang and Batu. 

With expertise in the field, investors can avoid the common pitfalls and delays associated with navigating the complex regulations in Indonesia. 

Teddy Willy

Branch Manager - Surabaya Office at InCorp Indonesia

With 10 years of experience in business consultancy, Teddy Willy offers expertise in financial and production auditing, sales and marketing, channels and distribution, supply chain management, and human resources for every business sector in Indonesia.

Get in touch with us.

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Frequent Asked Questions

When a foreigner or their heir move to another country and have not stayed in Indonesia within one year, they must relinquish or transfer ownership rights to someone that meets Indonesian land or property ownership requirements in Indonesia.

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.