Buying Property in Indonesia for Foreigners

Buying property in Indonesia can be done in many ways with several options. Further, it is also important to note that Indonesian agrarian law prohibits the ownership of a certain property title for foreigners. Let us assist and help you to structure owning a property in Indonesia.

Steps to Buy a Property

  1. Due diligence on the property
  2. Deciding the structure of acquiring the property, i.e sale and purchase, long lease, and/or other structure
  3. Providing a notary based on the location of the property who meets our expertise standard
  4. Preparing the documents and structuring the property acquisition (i.e condition sales and purchase agreement (CSPA), setting up PMA (as relevant), and any other supporting documents)
  5. Assisting the negotiation if required
  6. Processing the licenses required
  7. Specifically for the buyer, processing the transfer ownership title, and getting the property certificate in the name of the buyer

Common Mistakes in Buying Property in Indonesia



Do not conduct due diligence toward the property There is a possibility that the property is under a mortgage or any dispute.


If it is under a mortgage, you cannot transfer the ownership title unless the mortgage has been released. If it is under dispute, it will not be to your benefit if the original owner does not win in court.


Do not check the validity of the property certificate You may consider an extra cost if the validity of the property is near the expiration date.


Does not understand and consider the title of the property certificate The title of the property certificate is important whether you are eligible to own it or not and it will affect the validity of the property certificate


Does not use proper documentation to own and/or lease the property Documentation is important from the perspective of law. You should enter into documentation in favor of you


Do not aware of the licenses required on that property


Government can impose penalties on the unlicensed property
Do not have complete and proper documentation of property acquisition, i.e only have a CSPA as the document of title transfer and do not process the transfer ownership title of the property certificate in the National Land Agency (BPN)


By law, you are not the owner of the property until your name is registered in the certificate.
Do not hire a professional legal advisor who understands Indonesian law You might get inaccurate advice and your interest in the property would not be protected.



Get a free consultation with our Property Acquisition Team.

Tell us about your plan and our consultants will reach out to you to assist with your property needs.