Real Estate in Indonesia

How do I find a place to live in Indonesia?

We asked expats how they chose their neighborhood and found a place to live. They answered:

"I looked around and used local housing agents for my first house, which I overpaid on significantly. The next house was a much better deal, though still had to pay 1 year in advance," said one person in Batam.

"We moved into staff housing already selected and under contract before we'd arrived," remarked one foreigner who made the move to Jakarta.

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What is a typical expat home or apartment like in Indonesia?

"3 bedroom, 2.5 bath, driveway, not much of a yard. This is pretty typical for the area, and a lot of expats live in this area," said one person in Batam.

"Single family detached house which is typical for most expats in our area. High-rise apartments are also popular for those not wishing to employ a lot of staff for gardens or security, and those who don't want to worry about their homes when traveling," said one expat who made the move to Jakarta.

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What is the average cost of housing in Indonesia?

If you are thinking about moving to Indonesia, cost of living in probably a key consideration. Expats commented about the cost of housing:

"The average cost of housing in Indonesia varies depending on the location. Generally speaking, most basic housing in Indonesian cities can be found for a reasonable price, although prices can be higher in more populated or desirable areas. Additionally, the cost of renting an apartment or house in Indonesia is typically lower than that of purchasing a property," said one expat in Indonesia.

"Much higher and not justifiable in my opinion! Average cost of housing is US$3,000/month, payed 24 months in advance, lump sum, and in US dollars. Most houses are built with inferior material and shoddy methods. They look good when newly built or renovated, but they are not meant to last more than 15 years (when they are gutted and renovated). Many owners paid more for the lot than they did to construct the house," remarked one member in Jakarta.

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Should I buy or rent a home in Indonesia?

If you have not spent a lot of time in Indonesia, you should rent before even thinking about buying. We asked expats there about the buy vs. rent decision:

"Buying a home in Indonesia could be a good investment and provide both financial security and a sense of stability. Renting may be a better option for those who do not plan to stay in Indonesia for a long period of time, as it is less expensive and does not involve the commitment of a long-term mortgage. Additionally, renting may allow for more flexibility if you decide to move within the country or need to move out of the country. Consider your needs and circumstances before deciding to buy or rent a home in Indonesia," said one person in Indonesia.

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What do I need to know when buying property in Indonesia?

When we asked expats what advice they would give a foreigner before buying a property in Indonesia, they said:

"1. It is important to verify the seller and their ownership claim to the property before any transaction. 2. A foreign national cannot own land in Indonesia, but may acquire title to dwellings and apartments built on the land with permission from the local district office and permission from the Ministry of Manpower and Transmigration. 3. Foreigners may purchase a property through a limited liability company (PT PMA) and can also rent land for 99 years from the government. 4. A buyer should purchase title insurance to protect them from any land claims or legal issues that may arise from a disputed title. 5. Hiring an experienced lawyer or property advisor is recommended to ensure legal and financial accuracy and to provide assistance with the purchase process. 6. Acquisition costs include the initial purchase of the property, additional taxes and fees, a broker commission and legal fees. 7. It is important to research the local area and familiarize oneself with any applicable regulations or laws before making a purchase," explained one expat in Indonesia.

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Are foreigners allowed to own property in Indonesia?

When we asked expats what advice they would give a foreigner before buying a property in Indonesia, they said...

"Foreigners are generally not allowed to own property in Indonesia. However, there are certain exceptions. Foreigners may own property in Indonesia if they have a valid residence permit, or if they are married to an Indonesian citizen. Additionally, foreign companies may own property in Indonesia if they have a valid business license. In all cases, the property must be registered with the local government," explained one foreigner living in Indonesia.

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What appliances are typically included in a rental?

We asked foreigners in Indonesia what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included:

"In Indonesia, when renting a home, appliances typically included in the rental property are fridges, stoves or ovens, air conditioning units, washing machines, and hot water heaters. Additionally, some rental properties may include other amenities such as dishwashers, televisions, and microwaves," explained one person living in Indonesia.

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Additional Information about Searching for a Home in Indonesia:

We asked foreigners in Indonesia what appliances are typically included in a rental, and, if there is anything else included or not included that a newcomer would not expect. Replies included...

"Expats can search for homes in Indonesia by looking online for real estate websites that specialize in the area, asking friends and colleagues for recommendations, and contacting local real estate agents for assistance. Additionally, expats can look for online forums and discussion boards to get advice from other expats who have already gone through the process of finding a home in Indonesia," remarked one foreigner who made the move to Indonesia.

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