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Southeast Asia properties: All you need to know about investing in Indonesia houses

Amy  Buxton Amy Buxton
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Comprising of thousands of volcanic islands, Indonesia offers travellers access to stunning beaches, incredible natural beauty and enchanting wildlife, which is why so many people are keen to consider buying property there, but what do you need to know, before you take the plunge? Ask any real estate agent and they'll tell you that buying in Indonesia is a sound investment, but that priority is always given to nationals, with land ownership being something of a contentious issue. If you have been dreaming of a luxurious multi-bedroom beach home for some time, take a look at the information we have discovered and see if Indonesia could be a good fit for you.

1. Where's best to invest?

To make a shrewd investment in Indonesian property, you need to be thinking about the most popular locations, which are usually famed for having incredible beaches. Ket areas to be searching in are Jakarta, Bali, East and West Java and Sumatra. Be aware though, that homes in these areas will often attract hefty prices tags.

2. What are the property price ranges?

This is a tricky question! We'll get to how difficult it is for non-nationals to buy a home in Indonesia in a moment, but what we will say now is that foreigners have to commit to a minimum value purchase, which changes from region to region. You should expect to spend anywhere between 440,000 HKD, all the way up to 60,000,000 HKD, as the minimum value! It might have a lot of beaches, but Indonesia is not an underdeveloped area in terms of property!

3. What does a non-national need to know?

Indonesia is fiercely protective over land ownership, with non-nationals being able to own a house or apartment, but not the land it is built on. Developments in recent years have seen land leases being made available, but only for a maximum of 80 years. There are also a host of other tricky rules in place, such as ex-pats only being able to buy directly from developers, with no rental to third-parties. It would be wise to employ the services of a local property lawyer, to successfully navigate this difficult procedure. 

4. Is there property tax to take into account?

There sure are! A buyer will be liable for Transfer Tax (5% of sale value), Sale and Purchase of Land Deed (1% of sale value), Legal Fees (0.5-1.5% of sale value) and a Registration Fee (0.20% of sale value). These are all issues that a local property specialist will be able to help with and we cannot recommend hiring one enough! This is a complicated procedure and you want to know that you are getting good value for your money.

For more home-buying advice, take a look at this Ideabook: Southeast Asia properties: All you need to know about investing in Philippine houses.

Are you still considering a home in Indonesia?
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