Condo under constrcution as Indonesia property ownership laws change

Minimum prices for expat property ownership under the Right To Use (“Hak Paki”) ownership title under Indonesia law were changed recently by the Indonesia government.

Minimum prices revised for Indonesia foreign property ownership.

In 2015 the Indonesian government decided to allow foreigners to “own” luxurious apartments and landed houses under the extended “right of use” category (as opposed to the much stronger “right of ownership” category). However, the government set minimum property prices – and rather high ones – in order to protect the Indonesian people in the property market as there were concerns that foreigners would buy a high amount of houses and apartments if they would be allowed to buy the cheaper property units.

The latest revision sets higher minimum prices for expats who want to buy landed houses in Yogyakarta, Bali and North Sumatra. Meanwhile, the minimum price for apartments in Banten has also been raised. Only the minimum price for the purchase (by expats) of apartments in Jakarta has been reduced in a bid to attract property purchases.

Table 1 - showing new Indonesia foreign property ownership laws

Table showing new minimum values for houses and apartments purchased by expatriot buyers under Hak Pakai (Right To Use) Title in nine “zones” of Indonesia