Can Expatriates Own a Property in Indonesia?

Wednesday, 18 March 2015 , 08:30:00 WIB - Legal Advice

Photo Poster: ANTARA

My expatriate co-worker wants to have a property or house here (Indonesia). Do expatriates reserve the right to have a property in Indonesia?

Une in Karawaci-Tangerang

An expatriate couldn’t own a pedestal property. Expatriates only have use-rights pedestal. The regulation on basic agrarian and flats regulate expatriates only to have use rights. This regulation is confirmed in the Government Policy No. 41 Year 1996 Law of property ownership of residential house or residence by foreigners domiciled in Indonesia which states that:

A property of a residential house that could be owned by expatriates, as confirmed in Article 1, are:
1. Stand-alone houses built on a land property
a. State land property use rights.
b. Regulated by an agreement with the land property owner.
2. A flat built on a land property with the State use rights

According to the basic law of agrarian, property use rights is to use and collect the lot products owned by the State or someone’s land property, who gives the rights and duty determined by the owners or authorized officials and the agreement on the decision to hand over the land property, which are not the agreement on rent or land cultivation, as long as it not against the will and regulations.

I hope this could answer your questions.