Property in Indonesia for foreign investors: homes, offices, warehouses, factories and land

Foreigners cannot hold freehold land title (Hak Milik) in Indonesia, and neither can a foreign-owned company. That rule shapes every property decision a foreign investor makes, whether the need is a home, an office, a warehouse, a factory or a plot of land. There are legitimate routes for each. Which one fits depends on what you need the property for and who will hold it.

At a glance

Homes: right of use as an individual

A foreign individual with a valid Indonesian stay permit can hold a house or apartment under Hak Pakai, a right-of-use title. It is granted for an initial period and can be extended and renewed, so the total term can run for several decades depending on the underlying title.

Foreign buyers also face a minimum purchase price set by region. In Bali, for example, published guidance points to around IDR 5 billion for a landed house and IDR 2 billion for an apartment unit. Check the current threshold for your region with the land office or a notary before you shortlist properties.

Offices, shops and warehouses

Most foreign-owned companies lease their commercial space, at least at first. A lease is quick to arrange and keeps capital in the business. What matters is the contract: its term, extension rights, what happens if the owner sells, and whether the landlord's own title supports the lease you are signing.

A PT PMA can also buy commercial property and hold it under HGB, the right to build, provided the property is used for the company's registered business. The address also needs to suit your licences: a warehouse, for example, needs a location whose zoning allows warehousing.

Factories and industrial land

Under Government Regulation No. 20 of 2024, industrial companies are generally required to locate in an industrial estate, with limited exceptions. Whether your activity must be inside an estate depends on its business line (KBLI) and the local zoning, so confirm this before you look at any standalone site.

Estate plots are usually held under HGB granted on top of the estate operator's management right. That means the operator's consent is typically needed for transfers, extensions and renewals. Read those terms as carefully as the price. Estates often provide ready infrastructure and can come with licensing support or incentives.

Land for a project

A PT PMA can acquire land under HGB for its business plans. HGB is granted for an initial term that can be extended and renewed. If the land currently has a freehold certificate, it must be converted to HGB through a notary and the land office as part of the purchase.

Arrangements to avoid

Nominee structures, where an Indonesian citizen holds the title on a foreigner's behalf, are not legally recognised and leave the foreign party with little protection. Treat any proposal built on a nominee as a warning sign.

Checks before you sign

• Title: confirm the certificate is genuine, matches the land, and has no disputes or encumbrances.
• Zoning: confirm the permitted use matches your plans.
• Seller or landlord: confirm they have authority to sell or lease, including consents from co-owners where required.
• Permits: confirm the building approval and certificate of fitness, and environmental approval for industrial use.
• Tax and costs: understand transfer taxes, notary fees and who pays each.

Where to start

Decide first what the property is for and who should hold it: you personally, or your company. That points to Hak Pakai, HGB or a lease. From there, due diligence on the specific property protects the decision. See our Legal & Corporate services for property due diligence and transaction support.