Indonesian Property Ownership Laws

In exciting news today the Indonesian government has updated the Indonesian Property ownership laws.  The President Joko Widodo signed a Government Regulation (Peraturan Pemerintah, PP) on foreign home ownership in Indonesia in December 2015.  We expect further clarification and announcements in the coming weeks.  Our understanding of the PP is summarized below:

PP No. 103 of 2015 defines foreigners residing in Indonesia as those who do not hold an Indonesian citizenship and who contribute to the country through:

 

  • Business
  • Working
  • Investing in the country.

 

Property which foreigners are now allowed to own are:

 

  1. Rumah Tunggal di atas Tanah (houses)
    1. Right of Use;
    2. Right of Use over Hak Milik (Right of Ownership);
  2. Sarusun (Satuan Rumah Susun) Apartments.

Foreigners are allowed to:

 

  1. Own property for a period of 30 years
  2. Can be extended for another 20 years.
  3. The PP mentions the right to renew after extension for a maximum period of 30 years.
  4. The new law applies since 28 December 2015
  5. Foreigners married to Indonesians have the right to land ownership just as other Indonesians do.
  6. The ownership rights can be inherited by a foreign heir who must also have a residency permit.

 

For further information please see the announcement from the Indonesian government website.

 

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