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.