Rules For Buying Property In Indonesia Relaxed, Foreigners Can Buy Luxury Houses And Commercial Flats

Illustration (Photo: Pixabay/Schluesseldienst)

YOGYAKARTA – Regulations for foreigners buying property in Indonesia have been relaxed. One of the conveniences of regulation is that foreigners who already have passports and visas are not required to have a permanent/limited residence permit card (Kitas/Kitap) to be able to buy housing.

The housing in question is houses and flats (flats) that are not subsidized.

Regulations for foreigners buying property in Indonesia

Regulations for foreigners buying property in Indonesia can be found in the ATR/Head of BPN Ministerial Regulation Number 18 of 2021 concerning Procedures for Determining Management Rights and Land Rights.

Article 186 paragraph (1) of the Ministerial Regulation states that the ownership of a residential or residential house for foreigners is limited to landed houses, including:

• Houses with the category of luxury homes in accordance with the provisions of the legislation
• One parcel of land per person/family
• The land area is at most 2,000 m2

However, if it has a positive impact on the economy and society, then landed houses can be given more than a plot of land or an area of more than 2,000 m2 with the approval of the minister.

Regarding the limitation of landed house ownership referred to in Article 186 Paragraph (1), an exception is made for the ownership of residential or residential houses by representatives of foreign countries and/or representatives of international agencies.

Previously, Article 185 of Permen ATR/Head of BPN Number 18 of 2021 stated that foreigners who have immigration documents issued by the competent authority can have a residence or residence in the form of:

• Landed houses that are above land use rights over state land or usage rights over property rights, which are controlled based on an agreement granting usufructuary rights on property rights with the deed of the Land Deed Making Officer (PPAT). Or it could also be on Management Rights based on land use agreements with Management Right holders.
• Flats built on plots of land with usage rights or building use rights (HGB) on state land, usage rights or HGB on management rights land, and usage rights or HGB on private land.

In the same regulation in Article 187 paragraph (2) it is stated that the housing that foreigners can buy is in the form of buying new houses/units or old houses/units and the price of residential or residential houses is determined by a Ministerial Decree.

Meanwhile, according to Ministerial Decree ATR/Head of BPN No 1241/SK-HK.02/IX/2022 concerning Acquisition and Price of Residential/Residential Houses for Foreigners, the minimum price for residential units for foreigners is set to vary according to region, namely in the range IDR 1 billion-IDRR 5 billion. The price limit has also been trimmed when compared to the previous benchmark price, which was a minimum of IDR 750 million-IDR 10 billion, based on location.

This is information about the regulations for foreigners buying property in Indonesia. To get other selected news updates, read on VOI.ID.