Can Foreigners Buy Property in Indonesia?

Indonesian land law derives from the 1960 Basic Agrarian Law, updated by later regulation including PP 18/2021, which clarified and improved access for foreigners. Freehold ownership (Hak Milik) remains restricted to Indonesian nationals. However, the framework explicitly provides for foreign use and investment through other rights — a deliberate balance between protecting national land ownership and welcoming foreign capital.

• Hak Pakai (Right to Use). Available to foreigners who hold a valid Indonesian residence permit. Terms can extend up to 80 years cumulatively. Suitable for a personal residence or a held-for-income property.
• Hak Sewa (Leasehold). A lease of land or property for a fixed term (commonly 25–40 years, often extendable). The simplest and most common route for managed investment, and it does not require residency.
• HGB via PT PMA. A foreign-owned Indonesian company can hold HGB (Right to Build), suiting larger or commercial-scale investments. See leasehold vs HGB for the comparison.

Title is only part of the picture. A legitimate building also needs the correct permit — the PBG (Persetujuan Bangunan Gedung, which replaced the older IMB) — and clean land certification. Before transferring funds, verify the land certificate, the seller's or developer's right to build, the PBG, and that the structure you are buying into is properly documented. Our pre-purchase checklist walks through this step by step.

Buying and holding property in Indonesia involves transfer taxes, notary fees and, depending on use and structure, income or rental taxes. A PT PMA also has corporate accounting and reporting duties. These vary by structure and should be modelled for your specific situation by a qualified Indonesian tax advisor. The Indonesia property guide for foreigners covers the practicalities in more detail.

Foreign property investment in Indonesia is well-established and legally protected, but the responsibility for due diligence is yours. Use an independent lawyer — not one supplied solely by the seller — verify every document, and choose a developer with a real track record. For the Lombok-specific picture, see can foreigners invest in property in Lombok.