The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency has revealed that foreigners are eligible to own property in Indonesia by presenting their passports or visas.
“This is different from the previous regulations where we also asked for a Limited Stay Permit Card (KITAS) and a Permanent Stay Permit Card (KITAP) first. But now, with regard to residential ownership for foreigners, the KITAS and KITAP will be given after the foreigners buy or acquire property in Indonesia,” explained The Secretary General of the Ministry of Agrarian Affairs, Suyus Windayana.
However, there is a minimum price that can be purchased by foreigners.
“Now (the minimum price) for landed houses is an average of Rp5 billion, meanwhile, flats are at a minimum of Rp3 billion,” said Windayana.
The minimum prices for landed houses that foreigners can buy are as follows:
- DKI Jakarta: Rp5 billion
- Banten: Rp5 billion
- West Java: Rp5 billion
- Central Java: Rp5 billion
- East Java: Rp5 billion
- Special Region of Yogyakarta: Rp5 billion
- Bali: Rp5 billion
- West Nusa Tenggara: Rp3 billion
- North Sumatra: Rp2 billion
- East Kalimantan: Rp2 billion
- South Sulawesi: Rp2 billion
- Riau Archipelago: Rp2 billion
- Other regions or provinces: Rp1 billion
Moreover, the minimum prices for flats that can be purchased by foreigners are as follows:
- DKI Jakarta: Rp3 billion
- Banten: Rp2 billion
- West Java: Rp2 billion
- Central Java: Rp2 billion
- East Java: Rp2 billion
- Bali: Rp2 billion
- Special Region of Yogyakarta: Rp2 billion
- Other regions or provinces: Rp1 billion
Aside from pricing, there is a maximum measurement of land. Residential ownership for foreigners is limited to a maximum of 2,000 m2.
“Foreigners are only allowed, temporarily, to own a plot of land per family that has a land area of no more than 2,000 m2 but if they bring positive economic and/or social impacts, they can be given more prospects according to the minister’s permission,” he added.
Currently, the Ministry is studying existing land ownership over 2,000 m2 in Bali. Such considerations, continued Windayana, are the purpose of the land as well as whether the ownership could contribute to the surrounding economy.
Windayana added that residential and property ownership by foreigners in Indonesia can increase Indonesia’s competitiveness.
The government is confident that the presence of foreigners carrying out activities in Indonesia could increase Indonesia’s competitiveness when compared to other countries such as Singapore, Malaysia, and Thailand.
By opening the market as vast as possible, especially for foreign investors to invest in Indonesia, this step certainly opens up opportunities for job creation and a multiplier effect for improving the national economy.
One of the efforts made by the government is to reform regulations through the Job Creation Law as an instrument to encourage economic recovery and transformation.
“The Ministry, which has duties in the agrarian and land sector, supports the government’s efforts to provide ease of ownership of housing for foreign citizens, both residential and vertical housing,” he said.
The government through the Ministry of Agrarian Affairs has issued Government Regulation Number 18 of 2021 concerning Management Rights, Land Rights, Flats Units, and Land Registration, then Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia Number 18 of 2021 concerning Planning Means of Determining Management Rights and Land Rights.
Apart from that, other regulations that have been issued are Ministerial Decree ATR/KBPN No.1241/SK-HK.02/IX/2022 Year 2022 Acquisition and Prices for Foreigners’ Residential/Dwelling Houses.