Foreigners can securely own property in Indonesia by establishing a PT PMA, granting them outright ownership via Hak Guna Bangunan (HGB) title. Alternatively, they can acquire leasehold rights (Hak Sewa) for a specific period, held in their personal name and legally protected.

Leasehold rights, known as Hak Sewa, allow individuals or entities to use land or buildings owned by others for a fixed period. These rights can be granted over land with Freehold, Right to Build, or Right to Use titles.

Both Indonesian and foreign individuals and entities can acquire Leasehold properties for terms typically ranging from 1 to 25 years, with potential extensions outlined in agreements between lessors and lessees.

However, Hak Sewa cannot be mortgaged or registered with the National Land Agency. Within lease agreements, foreigners can develop permanent structures on leased land and even transfer the remaining lease term to third parties.

Examples of properties under Hak Sewa include commercial spaces like offices, factories, restaurants, hotels, shops, as well as residential units like apartments, condominiums, villas, and houses.

Freehold, known as Hak Milik, is the highest form of land ownership in Indonesia, reserved exclusively for Indonesian nationals. Limited liability companies (PT/Perusahaan Terbatas) and foreign individuals cannot obtain land under this title.

However, foreigners can acquire land through Hak Pakai or Right of Use entitlement.

Leasehold property transactions (Hak Sewa) typically have no tax implications for the buyer, while the seller faces a final income tax of 10% for Indonesian nationals or KITAS/KITAP holders, and 20% for foreigners without KITAS/KITAP.

Note that developers may have varying terms regarding taxes, with some including them in the property price and others not.

1.Contact us and submit your property requirements;

2.Select your preferred properties and schedule viewings;

3.Initiate negotiation by submitting a signed 'Offer to Purchase' document for your chosen property;

4.Choose a Notary/PPAT or seek recommendations from your agent;

5.Clarify terms and conditions by signing a binding 'Sale and Purchase' agreement;

6.Transfer a deposit to the notary escrow account to secure your investment. With the receipt of the deposit, the property will be taken off the market and restricted from selling to any third party;

7.Due Diligence – After your deposit has been received, the notary will start the process of due diligence which takes on average 14-30 days, depending on the property ownership title and the location of the property;

8.Completion of Legal Due Diligence – Once the due diligence is satisfactory, you can make an appointment at the notary to sign the final sale and purchase deed (Lease transfer deed). In case of a non-satisfactory due diligence, the notary will refund 100% of your deposit;

9.Sign and process balance payment – Once you have signed the final “Sale and Purchase” deed (lease transfer deed), with the seller, in front of the notary, you can transfer the balance payment to the nominated bank account of the seller;

10.Access your purchased property and receive dividends or live in it yourself.