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 o
ption 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.