Is It Possible for Foreigners to Get Land and property ownership In Indonesia?

Considered as one of the globe’s fastest-growing nations in the economy, Indonesia is such a fitting place for foreigners to invest and expand their business. Not only does the archipelago open wider opportunities for avid entrepreneurs to grow the corporation, but it also offers a great climate to reside.

For some people, being an expat in Indonesia is like a dream come true. Enjoying the sun all year round and making an escape to an island are few benefits you can have while living there. Yet, have you ever thought of purchasing land and property for your future investment? If yes, do you know how to deal with the land and property ownership? To clarify the issues, be sure to read on this following brief explanation.


The Rights of Foreign Ownership concerning Land in Indonesia


Land ownership for expatriates living in Indonesia is regulated by Act No.5 of 1960. The law arranges a couple of rights you need to figure out


1. Right of Use

Once gaining the right of use, you can both utilize and grow plants from the state’s land. This one has a close relation to the official government authorization and the land owner’s government. If you are about to make a transfer to other parties, you need to deal with the authorization of local government.


2. Building Rights on Land

On this right, anyone can own and establish a structure on the land of other parties. For this category, an expat has an initial period of possessing the area and building as well for about 30 years. According to the article 30 of the similar act, the ownership can be extended for other 20 years. This type of right can be turned into inheriting as well as selling.


3. Cultivation Right on Land

If your type of business is related to either farming or agriculture, you might apply the cultivation right. The duration for the landowners to optimize the ground is up to 25 years with an extension of 35 years. While sending an application, you are encouraged to let it registered through the National Land Agency. The feature of this right is you are allowed to get a loan by handing the certificate to a lender.


How about the Property Ownership?

Under the right of use, foreigners who live in Indonesia have free access to buy some properties. However, it comes with a range of inevitable requirements you need to underline.

  • The property has a steady minimum price according to the region’s regulation.
  • The foreigners are only allowed to make a purchase from a developer.
  • Renting some properties by the third party is banned.
  • It is vital to transfer the right of use to the right person when the foreigners plan to leave for another country.
  • The foreigners are able to purchase a landed house with a total period of 80 years.

All in all, foreigners can access to land and property ownership while residing in Indonesia. It has been regulated by the applicable law issued by the local government.




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