Faq1Can you own real estate in indonesia

Can you own real estate in Indonesia?

Yes, it is possible to own real estate in Indonesia as a person. There are two types of property ownership in Indonesia: leasehold and freehold. Leasehold is the most accessible way for a foreigner to own real estate in Indonesia.

You then buy the land for a specified period. For new construction, this is often 25 years, with an option to extend for another 25 years. This ownership is regulated by a notary.

As a foreigner, you can also own land through a company. You need to establish a company in Indonesia, and that company can own land. If you establish a company in Indonesia, you can choose to set it up as a limited liability corporation (PT). A PT is an independent legal entity that can be owned by foreign investors. By setting up a PT, you can own land and real estate for business purposes. The land will then have a different title and will be periodically monitored by the government. As long as no crimes are committed, the government will not intervene. This form of ownership is less common due to its complexity. Additionally, purchasing land freehold instead of leasehold is often much more expensive, making the investment less attractive.