Foreign Ownership Indonesian Property: Minimum Prices Revised

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 in case 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.

Price Mechanism Foreign Ownership of Landed Houses and Apartments in Indonesia:

Zone	Landed House Minimum value that can be purchased by foreigner	Apartment Minimum value that can be purchased by foreigner
Jakarta	IDR 10 billion	IDR 3 billion (initially IDR 5 billion)
Banten West Java	IDR 5 billion	IDR 2 billion (initially IDR 1 billion)
East Java	IDR 5 billion	IDR 1.5 billion
Bali	IDR 5 billion (initially IDR 3 billion)	IDR 2 billion
Yogyakarta	IDR 5 billion (initially IDR 3 billion)	IDR 1 billion
Central Java	IDR 3 billion	IDR 1 billion
North Sumatra	IDR 3 billion (initially IDR 2 billion)	IDR 1 billion
NTB East Kalimantan South Sulawesi	IDR 2 billion	IDR 1 billion
Other Regions	IDR 1 billion	IDR 750 million

^{Source: Investor Daily}

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