Indonesia’s property market continues to attract foreign interest, particularly in regions like Bali, Jakarta, and Yogyakarta. However, navigating property ownership as a foreign national requires understanding the legal framework established by Indonesian law. This article provides an updated overview of the regulations governing foreign property ownership in Indonesia as of 2025.
Under Indonesian law, the state holds ultimate control over land, and full ownership rights (Hak Milik) are reserved exclusively for Indonesian citizens. Foreigners are prohibited from owning land outright. However, several legal avenues allow foreign nationals to acquire property rights:
The Omnibus Law on Job Creation, enacted in 2020, introduced significant reforms to Indonesia’s legal and regulatory landscape, including provisions related to property ownership. Notably, Government Regulation No. 18 of 2021 (GR 18/2021) amended several aspects of land rights, making it easier for foreigners to own property in the country.
Key provisions include:
The process for acquiring property as a foreign national involves several steps:
While foreign property ownership is permissible under certain conditions, it’s essential to be aware of potential risks and challenges:
Conclusion
Foreign nationals interested in acquiring property in Indonesia must navigate a complex legal landscape that includes restrictions on land ownership and specific requirements for property rights. By understanding the available legal avenues and engaging with qualified professionals, foreigners can make informed decisions and mitigate potential risks associated with property investments in Indonesia.
For personalized guidance and assistance with property acquisition, it’s advisable to consult with legal experts and real estate professionals familiar with Indonesian property laws and regulations.
