Learn About Property & Land Ownership in Indonesia

Obtaining property & land ownership in Indonesia offers some challenges for foreigners. However, buying property in Indonesia is attainable with specific resources and documents – InCorp Indonesia can help expedite the process.
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Property & Land Ownership in Indonesia

Offering a wide range of business opportunities, Indonesia is often seen as an attractive Asian country for foreign investment. One of the thriving sectors is the construction industry, valued at USD 238 billion in 2021 and projected to grow by more than 5% in the next four years. This projection will attract more interest from investors, which will aid in job creation.

With such an optimistic projection, foreign investors need more convenience regarding property regulation and land ownership in Indonesia. The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency has issued Regulation No. 18 of 2021 on Procedures for Determining the Right to Manage and Rights over Land.

Regulations for Owning Property in Indonesia

The regulation states that foreigners who have secured immigration documents could own landed houses or multistory housing that occupy certain types of land with specific requirements:

1. Landed houses

  • Luxury houses following the relevant laws and regulations
  • One plot of land is permitted per person or family
  • The purchased area can be a maximum of 2,000 sqm. One can be exempt from this limitation if: 
  1. The relevant property positively impacts local economic and social life,
  2. Foreigners have secured a permit from the Minister
  3. Residency ownership for foreign representatives

2. Multistory housing

Multistory housing is a residential building with 4 or more stories and 10 or more dwelling units. This category includes:

  • Apartments: Individual units with private kitchens and bathrooms, accessible through shared hallways and stairs.
  • Condominiums: Individually owned units within a larger building, often with shared amenities like pools or gyms.

Restrictions for foreigners in buying property in Indonesia

Foreigners face restrictions on owning land with property rights in Indonesia, as governed by the Basic Agrarian Law (BAL), specifically Article 24. Therefore, it is important to be aware of the prohibited actions related to foreign ownership of land and property in Indonesia.

Direct Purchase of Land with Property Rights: It is illegal for foreigners to directly acquire land with property rights under the BAL.
Using Nominee Agreements: Agreements where an Indonesian citizen holds the land title on behalf of a foreigner are considered illegal and pose significant legal risks.

Steps of Buying Land and Property in Indonesia

Buying property in Indonesia can be complicated due to specific regulations and exceptions. These three ways will help you navigate the process of buying land and property in Indonesia.

Right to Use (Hak Pakai): Leasehold rights granting use for up to 80 years (renewable).
Company Ownership: Invest in an Indonesian company that can own land with full rights.
Marriage to an Indonesian Citizen: Gain indirect rights through joint ownership (legal complexities apply).

Lands Title Available in Indonesia

Once your desired land or property has been obtained, you should attain some titles. The Agrarian Law specifies several regulations concerning the titles and rights over land in Indonesia.

The Price Mechanism of Land & Property Ownership for Foreigners in Indonesia

Other than the relevant documents, foreigners must comply with the price mechanisms to obtain land & property ownership in Indonesia. The price varies in every region. Find the details below.

No Region Minimum Value to Purchase by Foreigners*
Landed House Multistory Housing
1 Jakarta IDR 10 billion IDR 3 billion
2 Bali IDR 5 billion IDR 2 billion
3 Batam IDR 3 billion IDR 1 billion
4 Banten IDR 5 billion IDR 2 billion
5 East Java IDR 5 billion IDR 1.5 billion
6 West Java IDR 5 billion IDR 1 billion
7 Yogyakarta IDR 5 billion IDR 1 billion
8 Central Java IDR 3 billion IDR 1 billion
9 West Nusa Tenggara IDR 3 billion IDR 1 billion
10 North Sumatra IDR 3 billion IDR 1 billion
11 East Kalimantan & South Sulawesi IDR 2 billion IDR 1 billion
12 Other Regions IDR 1 billion IDR 750 million

InCorp will professionally arrange the most suitable and risk-averse plan for your land & property ownership investment in Indonesia.

*The scheme can change at any time

InCorp Indonesia as The Solution for Land & Property Ownership in Indonesia


InCorp provides complete services to help you obtain the correct titles and other.


Foreigners who want to own land & property in Indonesia must provide valid.


InCorp Indonesia offers thorough consultations before you go through the land & property.

Interested in Buying/Selling Property in Bali?

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

Get in touch with us.

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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.

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