Foreigners are allowed to buy property in Indonesia

Indonesia has implemented quite restrictive policy regarding who can buy properties within its territory. Previously, only foreigners who have an Indonesian temporary residence permit or Kartu Izin Tinggal Terbatas (KITAS) are allowed to buy property with some additional requirements with regards to the type of property and its purchase value. However, as of 2021 a new policy update has loosened the requirement for the foreigners to be able to buy property just by showing evidence of a foreign passport or a visa. The government policy update in question Peraturan Pemerintah (PP) Nomor 18 tahun 2021 tentang Hak Pengelolaan, Hak Atas Tanah, Satuan Rumah Susun, dan Pendaftaran Tanah pasal 69 stated that:

• The foreign person who is allowed to have a house is a foreigner who has all the immigration documents according to the law (i.e., these documents are visa, passport, or residence permit). In this case, the foreigner is allowed to have a property in Indonesia with only passport or visa and KITAS is not mandatory
• In case of death, the house or property can be inherited to the heir
• The hair can be a foreigner and he/she must have all immigration documents according to the law

In addition, the type of property bought by the foreigner must also comply with the requirements imposed by the government, namely:

• A free-standing house must have a minimum purchase value of IDR 5 billions
• An apartment must have a minimum purchase value of in average IDR 3 billions. This is due to different policies on each region in Indonesia. These different minimum purchase values are listed below: