Property

Indonesia — Property: Rental Market

Foreigners cannot own land in Indonesia but can rent via Hak Sewa or use via Hak Pakai; leases are usually 1-3 years with rent paid yearly in advance.

VerifiedProfessional tax guide — not a government sourceRumah123 – Lease agreements in Indonesia for expatriates (property portal guide)Last reviewed: 2026-10-26

Key facts

  • Lease duration is usually one to three years, extendable by mutual agreement; in popular expat areas such as Bali, leases of 25-30 years are possible if both parties agree.
  • Rent is usually paid yearly in advance.
  • A security deposit is typically one to three months of rent.
  • Agreements can be private or notarized; notarization is strongly recommended for long-term or high-value rentals, and the contract should be bilingual (Bahasa Indonesia and English).
  • Foreign nationals cannot hold land ownership; Hak Sewa (right to lease) and Hak Pakai (right to use) are the routes open to them.
  • Renters may need a passport copy, KITAS/KITAP and a signed bilingual lease.

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