Foreigners Can Now Purchase Real Estate in Indonesia with a Passport Only

Indonesia has relaxed restrictions on property ownership for foreigners, taking an important step towards increasing foreign investments and stimulating the real estate market.

Now, foreign citizens can purchase property in the country without the need for a special stay permit (ITAS or ITAP). Only a passport will be required for the transaction.

President Joko Widodo, announcing the policy change, emphasized that this move is part of a broader government strategy to attract more direct foreign investments and promote economic growth.

“We believe that opening our real estate market to foreigners will lead to increased investments, job creation, and economic development,” President Widodo stated during his announcement.

It is worth noting that while foreigners can now purchase property in Indonesia without a special stay permit, certain conditions have been introduced to ensure that this policy truly benefits the country’s economy. Foreigners will be subject to the same taxes and property regulations as Indonesian citizens and must adhere to zoning and land use rules. So it is important to note that in this case, foreigners have the right to acquire real estate with the status of “Hak Pakai.”

The most common type of property ownership in Indonesia for foreign citizens is obtaining the “Hak Pakai” right of use. This permission is one of the safest options for foreigners and grants the right to use and operate real estate for residential or commercial purposes for a specified period. Typically, the license is issued for 25-30 years with the possibility of renewal. It’s also worth understanding that real estate with “Hak Pakai” rights must be built on land with “Hak Milik” (ownership right), which in most cases belongs to an Indonesian citizen.

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