Property

Indonesia — Property: Foreign Ownership

Foreigners in Indonesia cannot hold freehold, HGU or HGB land but can hold right to use (hak pakai), lease buildings and own apartment units in permitted zones.

VerifiedGovernment / official sourceDirectorate General of State Assets (DJKN) — land rights for foreigners; PP 18/2021Last reviewed: 2026-10-23

Key facts

  • A DJKN article says foreigners may hold a hak pakai for a fixed term, a building lease, ownership of an apartment unit (sarusun) and a residence, but may not hold hak milik, HGU or HGB.
  • Apartment ownership by foreigners is limited to special economic zones, free trade areas and ports, industrial estates and other economic zones, with limits on minimum price, land area and number of units set by a ministerial regulation.
  • Government Regulation 18/2021 replaced PP 40/1996 and PP 103/2015 on foreign home ownership; the current price floor was not found.
  • The DJKN article predates the current rules.

Steps

  1. Determining Eligibility — Research the specific regulations and restrictions for the desired location and type of property. Check with local authorities or a qualified attorney to determine if foreign ownership is allowed and if any special permits or licenses are required.
  2. Obtaining Necessary Permits — If foreign ownership is permitted, apply for the necessary permits and licenses. The process and requirements for these permits can be complex and time-consuming.

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