Investment property: Indonesia

Updated 6 October 2026

Indonesia is above all a resort market: Bali has long been one of the world's best-known destinations for villas and rental apartments, while Jakarta has business demand.

The key feature: a foreigner cannot hold land in Indonesia as freehold (Hak Milik). So choosing the right legal form of ownership matters more here than choosing the property itself.

How a foreigner can hold property

Holding through a local citizen under a private agreement, where the foreigner pays and the land is registered to an Indonesian, is not protected by law: such deals are declared void. We do not use such schemes.

Minimum price for foreigners

Under a decision of the Ministry of Agrarian Affairs and Spatial Planning, a foreigner may buy a home only above the minimum set for the province. In Bali it is IDR 5 billion, about $279,400, for a house and IDR 2 billion, about $111,800, for an apartment. In Jakarta it is IDR 5 billion for a house and IDR 3 billion, about $167,700, for an apartment. Dollar amounts use the Bank Indonesia rate of 2 October 2026, IDR 17,898 per dollar, rounded up.

Taxes and costs

• Land and building acquisition duty (BPHTB) - up to 5% of the value, paid by the buyer.
• The seller pays a final 2.5% tax on the price.
• New builds from a developer carry VAT, with government incentives for some properties - we check on the deal date.
• Rental of land and buildings carries a final 10% tax on the rent.
• The notary and title registration with the land office.

How the deal works

• Checking the land certificate at the land office: owner, type of right, boundaries, encumbrances.
• Checking zoning: whether building and tourist letting are allowed on the plot.
• A deed before a land deed official (PPAT) and payment through a bank.
• Registering the right of use, unit or lease in your name or your company's.
• For tourist rentals, an accommodation licence.

Property and residence

Buying property does not by itself give residence, but Indonesia offers visas for wealthy foreigners that take financial assets or property into account. Conditions change periodically, so we check them on the deal date and plan the purchase together with the visa.

Common buyer mistakes

• Buying in the name of an Indonesian acquaintance under a private agreement.
• A villa for tourist rental on a plot where zoning bans such rentals.
• A lease without checking who really owns the land.
• A price below the foreigners' minimum: the right will not be registered.

Can a Russian citizen buy property in Indonesia

Yes, on the same terms as any foreigner: there are no separate restrictions for Russian citizens. But a foreigner gets the right to use a house or the right to an apartment only with a permit to stay in Indonesia - a temporary or permanent residence permit. Without one, the option is a long-term lease of land and a house by contract, usually for 25-30 years with the right to extend.

Indonesia has not joined Western sanctions, so for Russians the deal runs into payment rather than bans: Russian cards do not work here, and money goes by bank transfer from a third country with documents on its origin. The law does not protect deals registered in a local acquaintance's name; such deals are declared void. Status options for buyers are on the page Indonesia residence permit.

Minimum prices for foreigners by province

The minimums were set by a 2022 decision of the Ministry of Agrarian Affairs and Spatial Planning: 5 billion rupiah for a house in Bali and Jakarta, 3 billion rupiah for an apartment in Jakarta and 2 billion rupiah in Bali. Below the threshold the right cannot be registered in a foreigner's name. Amounts in US dollars at the European Central Bank rate of 6 October 2026, rounded up. Buying in Bali is covered in buying an apartment in Bali.

Owner taxes: rent and sale

• Annual land and building tax. Paid to the local administration on the cadastral valuation, at a fraction of a percent.
• Rent. Letting land and buildings is subject to a final 10% tax on the rent. Short-term tourist lets need a guest accommodation licence.
• Sale. The seller pays a final 2.5% tax on the price, and the buyer pays an acquisition tax of up to 5%.

The double tax treaty between Russia and Indonesia is in force and Russia has not suspended it, so a Russian tax resident can credit rent tax paid in Indonesia. The Indonesian bank account must be reported to the tax office. More on the page taxes in Indonesia.

How to buy property in Indonesia remotely

Indonesia has been part of the Hague Apostille Convention since 2022, so a power of attorney made before a notary in the country of residence only needs an apostille and a translation into Indonesian. With it the representative checks the land certificate and zoning, signs the contract before a land deed notary and registers the lease.

The right to use a house or the right to an apartment is harder to arrange remotely: first you need a residence permit, and that requires a visit. So a purchase is usually split into two steps: choosing and checking the property in advance, and registering the right after the status is granted. The lease can be signed at once, while the contract with the developer is made conditional on registering the right after residence is granted.

What we do

We choose the ownership form for your goal, check the certificate, zoning and seller, register a foreign-owned company if needed, handle the deal before the notary, calculate taxes, obtain the rental licence and help with the visa.

What we do

• Property shortlist for your investment goal
• Legal due diligence on the property
• End-to-end transaction support
• Ownership structuring (company, trust)
• Property management and letting

See also

Company formation · Business account · Personal account · Country taxes · All country programs

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