In 2015 the Indonesian government decided to allow foreigners to "own" luxurious apartments and landed houses under the extended "right of use" category (as opposed to the much stronger "right of ownership" category). However, the government set minimum property prices - and rather high ones - in order to protect the Indonesian people in the property market as there were concerns that foreigners would buy a high amount of houses and apartments in case they would be allowed to buy the cheaper property units.

The latest revision sets higher minimum prices for expats who want to buy landed houses in Yogyakarta, Bali and North Sumatra. Meanwhile, the minimum price for apartments in Banten has also been raised. Only the minimum price for the purchase (by expats) of apartments in Jakarta has been reduced in a bid to attract property purchases.

Price Mechanism Foreign Ownership of Landed Houses and Apartments in Indonesia:

Zone Landed House
Minimum value that can
be purchased by foreigner
Apartment
Minimum value that can
be purchased by foreigner
Jakarta IDR 10 billion IDR 3 billion
(initially IDR 5 billion)
Banten
West Java
IDR 5 billion IDR 2 billion
(initially IDR 1 billion)
East Java IDR 5 billion IDR 1.5 billion
Bali IDR 5 billion
(initially IDR 3 billion)
IDR 2 billion
Yogyakarta IDR 5 billion
(initially IDR 3 billion)
IDR 1 billion
Central Java IDR 3 billion IDR 1 billion
North Sumatra IDR 3 billion
(initially IDR 2 billion)
IDR 1 billion
NTB
East Kalimantan
South Sulawesi
IDR 2 billion IDR 1 billion
Other Regions IDR 1 billion IDR 750 million

Source: Investor Daily

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