Singapore citizens looking to purchase property in Indonesia must comply with the regulations set by the Indonesian government. Here are the steps and requirements to be aware of:
Ownership Status Foreign nationals (including Singapore citizens) are allowed to own property in Indonesia under the "Right to Use" (Hak Pakai) status. This status grants the right to use land or buildings for a specified period.
Types of Property Eligible for Foreign Ownership
Landed Houses: Foreign nationals can own landed houses on land with Hak Pakai status.
Apartments (Condominiums): Foreign nationals can own apartment units built on land with Hak Pakai status.
Document Requirements Previously, foreign nationals were required to have a Limited Stay Permit (KITAS) or a Permanent Stay Permit (KITAP). However, under Government Regulation No. 18 of 2021, this requirement has been simplified. Foreign nationals can now purchase property with just immigration documents such as a passport or visa.
Property Price Limit The government sets a minimum property price that foreign nationals are allowed to purchase, which varies by region. For example, the minimum price for landed houses in Jakarta is IDR 5 billion.
Right to Use Duration The Hak Pakai is granted for an initial period of 30 years and can be extended according to applicable regulations.
Purchase Process
Choose a Property: Identify a property that suits your needs and budget.
Legal Verification: Ensure that the property has complete and compliant legal documents.
Sale and Purchase Agreement: Execute the sale and purchase agreement in the presence of a Land Deed Official (PPAT).
Tax Payment: Settle all tax obligations related to the property transaction.
Certificate Processing: Upon completion, the Hak Pakai certificate will be issued in your name.
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