How overseas buyers buy property in Indonesia

What to know first

• Every listing in this catalogue uses Hak Sewa (leasehold), 25–30 years, open to any foreign national with no residency permit required to buy
• Freehold (Hak Milik) is barred to foreigners nationwide under the 1960 Agrarian Law — not a restriction specific to any one project or developer
• Non-resident individuals without a PT PMA face a 20% withholding tax on gross rental income — materially higher than the 10% final-tax rate available through a properly structured PT PMA
• No mortgage access for most foreign buyers on leasehold property — budget for cash or developer payment-plan purchase, not bank financing
• Nominee arrangements (an Indonesian citizen holding freehold title on a foreigner's behalf) are illegal, unenforceable in Indonesian courts, and actively targeted for seizure — avoided entirely by the Hak Sewa structure this catalogue uses

The general process

1. Confirm what foreigners may own in Indonesia and in which areas.
2. Set your budget in IDR, including taxes, fees and currency costs.
3. Shortlist areas and check the developer or seller.
4. Appoint an independent local lawyer before paying anything substantial.
5. Reserve, sign the contract, and pay through the approved channel.
6. Complete registration, and take tax advice in both countries on any rent or sale.

The exact steps and order differ by country and by project.

Financing for foreign buyers

Notes

This is a structurally cash/developer-finance market, not a bank-mortgage one, for the leasehold structure every listing in this catalogue uses

Residency through property

Programme

No standard residency-by-investment tied to leasehold property; Hak Pakai (right-to-use, up to 80 years total tenure) requires an existing KITAS/KITAP residency permit to hold, rather than granting one

Taxes and running costs

Income tax on rent

Non-resident individuals without a PT PMA (foreign-owned company) face 20% withholding tax on gross rental income; tax residents and PT PMA holders pay a 10% final tax on gross rental income under PP 34/2017 instead

Capital gains tax

Taxed as part of standard income tax rules for the applicable ownership structure — varies by whether the seller is an individual or a PT PMA; get structure-specific advice before assuming a rate

Transfer tax or fees

Standard Indonesian property transfer duties (BPHTB) apply on registered transactions; leasehold assignments carry their own notarial/registration costs distinct from freehold transfer tax

Annual property costs

Land and building tax (PBB), plus villa management/operating costs which typically run 45–50% of gross short-term-rental revenue (staff, utilities, maintenance, supplies)

Area guides in Indonesia