Learn About Property & Land Ownership in Indonesia

A. Property & Land Ownership in Indonesia

Due to its diverse business opportunities, Indonesia is frequently regarded as an appealing Asian country for foreign investment. The construction industry, valued at USD 238 billion in 2021 and expected to grow by more than 5% over the next four years, is one of the sectors that is currently thriving.

This projection will pique the interest of investors, assisting in job creation. With such an optimistic forecast, foreign investors in Indonesia require greater ease of property regulation and land ownership. 

The Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency has issued Regulation No. 18 of 2021 on Procedures for the Determination of the Right to Manage and Rights over Land.

According to the regulation, foreigners who have obtained immigration documents may own landed houses or multistory housing that occupy specific types of land and meet particular requirements:

1. 1. Landed houses
      • The relevant property positively impacts local economic and social life,
      • Foreigners have secured a permit from the Minister
      • Residency ownership for foreign representatives
   2. Multistory housing, which falls into the commercial category. Abisnis will provide the necessary assistance to help you obtain the property and land ownership requirements.

B. Lands Title Available in Indonesia

You should obtain some titles once you have obtained your desired land or property.

The Agrarian Law specifies several regulations concerning the titles and rights over land in Indonesia.

C. The Price Mechanism of Land & Property Ownership for Foreigners in Indonesia

Aside from the necessary documents, foreigners must follow the price mechanisms in order to obtain land and property ownership in Indonesia. Every region has a different price. Find the details below.