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PROPERTY OWNERSHIP FOR FOREIGN CITIZENS

In Indonesia’s national land law, there is a principle of “Prohibition of Land Alienation” (gronds verponding verbrood), namely the prohibition of land ownership with rights other than usufructuary rights to be owned by foreigners. The consequence of this principle is that foreign nationals cannot own land with ownership rights in Indonesia (only permitted with usufructuary rights). This is regulated in articles 42 and 45 of Law no. 5/1960 concerning Basic Agrarian Regulations; Article 39 PP No. 40/1996 concerning HGU, HGB and Land Use Rights; PP No. 41/1996 concerning Ownership of Residential or Residential Houses by Foreigners Domiciled in Indonesia. But now, with the promulgation of PP No. 103/2015 (State Gazette No. 325/2015), which regulates “Or Ownership of Residential Homes by Foreigners/Foreigners Domiciled in Indonesia)” on December 28, 2015, the provisions in PP No. 41/1996 was declared repealed and no longer valid. There are several conditions that must be met by foreigners to be able to buy property in Indonesia, namely:

1. You may only buy property with a usufructuary certificate For foreigners who want to buy property in Indonesia, the government only allows them to buy property with a Right to Use Certificate. Certificates of usage rights for landed houses or flats are only given for 30 years, but can be extended for 20 years and renewed for another 30 years. So the total time a foreigner can live in the property he buys can be up to 80 years. Right to use certificates obtained for landed houses and flats on existing ownership rights or HGB, are the remainder of the HGB period, and can be extended for 20 years and renewed for 30 years. Not only that, properties purchased by foreigners can also be inherited and can be used as collateral for debts by being burdened with Mortgage Rights.
Kitas
2. Have a Kitas (Limited Stay Permit Card) Based on Government Regulation Number 103 of 2015 article 2 paragraph 2 it states that foreign nationals who are allowed to buy property in Indonesia must have a residence permit and settle in Indonesia issued by the Ministry of Law and Human Rights. This residence permit, also known as KITAS (Limited Stay Permit Card), to obtain this Kitas a foreigner must first work in Indonesia and this card must be extended for every 2 years. From this rule it can also be understood that foreigners who want to buy property must first work in Indonesia, so their motivation for buying property is not to invest but to live in.
3. Only Single Houses and Apartments Foreigners can buy all types of property, only single houses and apartments are allowed. This rule can be seen clearly in Government Regulation Number 103 of 2015 article 1 paragraph 2 and 3.
Uang rupiah dan dollar
4. Property prices are regulated by area and there is a limit to the size of the property. The government provides a price limit for foreigners who wish to buy housing in Indonesia, with a standardized price of over IDR 5 billion. This is deliberately done to prevent foreigners from buying houses at low prices, so that low-income people can be protected. Another stipulation is regarding the area of ​​the property, foreign nationals can own property on a maximum land area of ​​2,000 square meters per person in one plot of land. However, if the presence of a foreigner has a positive impact on the national economy, they can be given a residence with a land area of ​​more than 2,000 square meters with permission from the minister.
Menikah dengan orang asing
5. Married to an Indonesian The final requirement for foreigners who want to buy property in Indonesia is to marry an Indonesian, that way every foreign national can have the opportunity to become an Indonesian citizen. In addition, every foreigner is also required to include the purchased property in the Prenuptial Agreement, because the property purchased by foreigners will become joint property with the spouse. Foreign nationals who already own property in Indonesia but are no longer domiciled in Indonesia, then within a period of 1 year are MANDATORY to relinquish or transfer their property rights to other parties who meet the requirements. If within that period, the right to the property has not been released or transferred to another party that meets the requirements, then : 1. The property is auctioned by the State and the results of the auction become the rights of the former rights holders; 2. The property belongs to the holder of the relevant land rights.

MINIMUM PRICE OF A HOUSE OR DESIGN THAT A FOREIGN PERSON CAN OWN

RUMAH TUNGGAL

 

No. Lokasi/ Provinsi Harga Minimal (Rupiah)
1. DKI Jakarta 10 miliar
2. Banten 5 miliar
3. Jawa Barat 5 miliar
4. Jawa Tengah 5 miliar
5. DI Yogyakarta 5 miliar
6. Jawa Timur 5 miliar
7. Bali 5 miliar
8. NTB 3 miliar
9. Sumatera Utara 3 miliar
10. Kalimantan Timur 2 miliar
11. Sulawesi Selatan 2 miliar
12. Daerah/ Provinsi Lainnya 1 miliar

SARUSUN

 

No. Lokasi/ Provinsi Harga Minimal (Rupiah)
1. DKI Jakarta 3 miliar
2. Banten 2 miliar
3. Jawa Barat 1 miliar
4. Jawa Tengah 1 miliar
5. DI Yogyakarta 1 miliar
6. Jawa Timur 1,5 miliar
7. Bali 2 miliar
8. NTB 1 miliar
9. Sumatera Utara 1 miliar
10. Kalimantan Timur 1 miliar
11. Sulawesi Selatan 750 Juta
12. Daerah/ Provinsi Lainnya 1 miliar

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