9 rules of Indonesia law that matter when you buy off-plan, each quoted from the official text with a link. We include an article only after reading it in the official source. General information, not legal advice: ask a local lawyer about your contract.
A foreigner can own a house in Indonesia only on Hak Pakai (right of use) land#
Title type, Who is buying and selling
A landed house owned by a foreigner must sit on Hak Pakai land: either plain Hak Pakai, Hak Pakai granted over someone's Hak Milik by a deed before a land deed official (PPAT), or Hak Pakai over Management Rights land under an agreement with the holder. Apartments (strata units) follow separate rules in the same article. If your contract promises you Hak Milik, or keeps the title in another person's name for you, ask a lawyer before paying.
Rumah tempat tinggal atau hunian yang dapat dimiliki oleh Orang Asing merupakan: a. rumah tapak di atas Tanah: 1. hak pakai; atau 2. hak pakai di atas: a) hak milik, yang dikuasai berdasarkan perjanjian pemberian hak pakai di atas hak milik dengan akta Pejabat Pembuat Akta Tanah; atau b) Hak Pengelolaan, berdasarkan perjanjian pemanfaatan Tanah dengan pemegang Hak Pengelolaan.
Translation: Houses or dwellings that may be owned by a Foreigner are: a. landed houses on Land: 1. right of use (hak pakai); or 2. right of use over: a) freehold (hak milik), held under an agreement granting right of use over freehold made by deed of a Land Deed Official; or b) Management Rights, under a land use agreement with the holder of the Management Rights.
Government Regulation (PP) No. 18 of 2021 on Management Rights, Land Rights, Strata Units and Land Registration, Article 71(1)(a). JDIH Nasional (peraturan.go.id), Ministry of Law.
The foreign buyer needs an immigration document#
Who is buying and selling
Only a foreigner who holds an immigration document under Indonesian law can own a home. Check what the contract says about your status and which document the notary will ask for.
Orang Asing yang dapat memiliki rumah tempat tinggal atau hunian merupakan Orang Asing yang mempunyai dokumen keimigrasian sesuai dengan ketentuan peraturan perundang-undangan.
Translation: A Foreigner who may own a house or dwelling is a Foreigner who holds an immigration document in accordance with the laws and regulations.
Government Regulation (PP) No. 18 of 2021 on Management Rights, Land Rights, Strata Units and Land Registration, Article 69(1). JDIH Nasional (peraturan.go.id), Ministry of Law.
Hak Pakai on State or Management Rights land runs 30 years, then 20, then 30#
Title type
Right of use with a time limit is granted for up to 30 years, can be extended for up to 20 years, and renewed for up to 30 years. An extension or renewal is an application, not automatic. Check which term your contract promises and who pays for extensions.
Hak pakai di atas Tanah Negara dan Tanah Hak Pengelolaan dengan jangka waktu diberikan untuk jangka waktu paling lama 30 (tiga puluh) tahun, diperpanjang untuk jangka waktu paling lama 20 (dua puluh) tahun, dan diperbarui untuk jangka waktu paling lama 30 (tiga puluh) tahun.
Translation: Right of use with a time limit over State Land and Management Rights Land is granted for at most 30 years, extended for at most 20 years, and renewed for at most 30 years.
Government Regulation (PP) No. 18 of 2021 on Management Rights, Land Rights, Strata Units and Land Registration, Article 52(1). JDIH Nasional (peraturan.go.id), Ministry of Law.
Foreign ownership has limits: minimum price, plot size, number of units, residential use#
Price, Title type
The regulation lets the government set a minimum price, a maximum plot size, a maximum number of plots or units, and requires residential use. The current figures are set in separate ministerial rules, so check them for your region before you sign.
Kepemilikan rumah tempat tinggal atau hunian Orang Asing sebagaimana dimaksud dalam Pasal 71 diberikan dengan batasan: a. minimal harga; b. luas bidang Tanah; c. jumlah bidang Tanah atau unit Satuan Rumah Susun; dan d. peruntukan untuk rumah tinggal atau hunian.
Translation: Ownership of a house or dwelling by a Foreigner as referred to in Article 71 is granted with limits on: a. minimum price; b. land plot area; c. number of land plots or strata units; and d. designation for residential use.
Government Regulation (PP) No. 18 of 2021 on Management Rights, Land Rights, Strata Units and Land Registration, Article 72. JDIH Nasional (peraturan.go.id), Ministry of Law.
Only Indonesian citizens can hold Hak Milik (freehold)#
Title type
Freehold land (Hak Milik, often shown as SHM on the certificate) can only be held by an Indonesian citizen. A foreign buyer cannot be registered as the owner of Hak Milik land.
Hanya warga-negara Indonesia dapat mempunyai hak milik.
Translation: Only Indonesian citizens may hold freehold (hak milik).
Law No. 5 of 1960 on Basic Agrarian Principles (UUPA), Article 21(1). JDIH Nasional (peraturan.go.id), Ministry of Law.
Arrangements that pass freehold to a foreigner, directly or indirectly, are void#
Title type
Any sale or other act meant to transfer Hak Milik to a foreigner, directly or indirectly, is void by law, the land falls to the State, and money already paid to the owner cannot be claimed back. This is why nominee structures (an Indonesian holds the freehold for you) are a serious risk.
Setiap jual-beli, penukaran, penghibahan, pemberian dengan wasiat dan perbuatan-perbuatan lain yang dimaksudkan untuk langsung atau tidak langsung memindahkan hak milik kepada orang asing, kepada seorang warga-negara yang disamping kewarganegaraan Indonesianya mempunyai kewarga-negaraan asing atau kepada suatu badan hukum kecuali yang ditetapkan oleh Pemerintah termaksud dalam pasal 21 ayat (2), adalah batal karena hukum dan tanahnya jatuh kepada Negara, dengan ketentuan, bahwa hak-hak pihak lain yang membebaninya tetap berlangsung serta semua pembayaran yang telah diterima oleh pemilik tidak dapat dituntut kembali.
Translation: Every sale, exchange, gift, bequest and other act intended to transfer freehold directly or indirectly to a foreigner, to a citizen who also holds a foreign citizenship, or to a legal entity other than those set by the Government under Article 21(2), is void by law and the land falls to the State, provided that rights of other parties encumbering it continue and all payments already received by the owner cannot be claimed back.
Law No. 5 of 1960 on Basic Agrarian Principles (UUPA), Article 26(2). JDIH Nasional (peraturan.go.id), Ministry of Law.
Leasehold: a lease of someone else's land for building#
Title type
The basic land law recognises a lease of land owned by someone else for building, paid to the owner, and a foreigner domiciled in Indonesia may hold it. A lease is a contract with the land owner, so check the owner on the land certificate, the length of the lease, and the written terms for extension.
Seseorang atau suatu badan hukum mempunyai hak sewa atas tanah, apabila ia berhak mempergunakan tanah-milik orang lain untuk keperluan bangunan, dengan membayar kepada pemiliknya sejumlah uang sebagai sewa.
Translation: A person or legal entity has a lease right over land if entitled to use land owned by another for building, paying the owner a sum of money as rent.
Law No. 5 of 1960 on Basic Agrarian Principles (UUPA), Articles 44(1) and 45. JDIH Nasional (peraturan.go.id), Ministry of Law.
Pre-sales (PPJB) of houses under construction need land status, permits and 20% built first#
Payment schedule, Permits, Title type, Completion date
Homes still being built may be sold through a preliminary sale agreement (PPJB) only after there is certainty on the land ownership, what is promised, the building permit, the infrastructure, and at least 20% of the housing built. Ask the developer for proof of each. This is the 2011 wording; the Job Creation law later amended parts of this law, so have a lawyer confirm the current text.
Perjanjian pendahuluan jual beli sebagaimana dimaksud pada ayat (1) dilakukan setelah memenuhi persyaratan kepastian atas: a. status pemilikan tanah; b. hal yang diperjanjikan; c. kepemilikan izin mendirikan bangunan induk; d. ketersediaan prasarana, sarana, dan utilitas umum; dan e. keterbangunan perumahan paling sedikit 20% (dua puluh persen).
Translation: The preliminary sale agreement referred to in paragraph (1) is made after meeting the requirement of certainty on: a. the land ownership status; b. what is agreed; c. holding the main building permit; d. availability of infrastructure, facilities and public utilities; and e. at least 20% (twenty percent) of the housing built.
Law No. 1 of 2011 on Housing and Residential Areas, Article 42(1) and (2). JDIH Nasional (peraturan.go.id), Ministry of Law.
PBG is the building approval; SLF certifies the building is fit for use#
Permits
PBG (Persetujuan Bangunan Gedung) is the permit given to the building owner to build. SLF (Sertifikat Laik Fungsi) is issued by the local government to state the building is fit for function before it can be used. Both run through SIMBG, the government's web system, so a real PBG can be checked there.
perizinan yang diberikan kepada pemilik Bangunan Gedung untuk membangun baru ... sertifikat yang diberikan oleh Pemerintah Daerah untuk menyatakan kelaikan fungsi Bangunan Gedung sebelum dapat dimanfaatkan ... sistem elektronik berbasis web yang digunakan untuk melaksanakan proses penyelenggaraan PBG
Translation: a permit given to the owner of a Building to build new ... a certificate given by the Regional Government to state that a Building is fit for function before it can be used ... a web-based electronic system used to carry out the PBG process
Government Regulation (PP) No. 16 of 2021 implementing Law No. 28 of 2002 on Buildings, Article 1 points 17, 18 and 48. JDIH of the Ministry of Housing and Settlement Areas (jdih.pkp.go.id).
Used by the late-handover calculator and the contract law notes. See also how to check a project in Indonesia.
Did we misread a rule? Send documents and we add your reply or correct the record: right of reply · corrections. Every figure here is computed from the open dataset (/data/bali-cases.json, CC BY 4.0) and changes when the data changes.