Simplified rules for foreigners buying real estate in Indonesia: now it is possible to purchase luxury homes and commercial properties.

In Indonesia, the rules for foreigners purchasing real estate have been relaxed. One of the conveniences of this regulation is that foreigners who already have a passport and visa do not need permanent or temporary residency (Kitas/Kitap) to be able to buy property. This applies to houses and apartments that are not subsidized.

The rules for foreigners purchasing real estate in Indonesia can be found in the Ministerial Regulation ATR/Head of BPN No. 18 of 2021, which pertains to the procedures for determining rights to manage and land rights. Article 186, paragraph (1) of the Ministerial Regulation states that foreigners can own real estate in the form of land houses, including:

• Houses classified as luxury housing according to the legislation;
• One land share per person/family;
• The area of the land should not exceed 2000 m2.

However, if this has a positive impact on the economy and society, it may be possible to grant foreign individuals more land or plots larger than 2000 m2 with the minister's consent.

However, there is an exception to the restriction on owning a land house established in Article 186, paragraph (1). The exception is made for representatives of foreign countries and/or representatives of international organizations.

Earlier in Article 185 of the ATR/Chapter BPN No.

• Land houses must be above land rights to state lands or rights to use real estate, controlled based on an agreement granting the right to use property by a state notary act (PPAT). Or based on management rights under a land use agreement with the owners of management rights.
• Apartments on plots of land with the right of use or the right to use buildings (HGB) on state lands, the right of use or HGB on lands with the right of management and the right of use or HGB on private lands.

According to the same regulation, Article 187, paragraph (2) states that foreigners can also acquire new or old residential units, and the price of residential houses is determined by a ministerial decree.

According to the Ministerial Decree ATR/Head of BPN No. 1241/SK-HK.02/IX/2022 regarding the purchase and price of residential houses for foreigners, the minimum price of residential units for foreigners can vary depending on the region, ranging from 1 billion IDR to 5 billion IDR. The price limit has been reduced compared to the previous level, which was a minimum of 750 million IDR to 10 billion IDR depending on the location.

This is information about the rules for foreigners wishing to purchase real estate in Indonesia. If you want to receive other news, read the articles available on the VOI.ID website. Tags: housing loan, ATR BPN ministry, real estate.