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Real Estate in Indonesia | Digital Nomad Exchange
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Ubud on Bali Island, Indonesia

Real Estate in Indonesia

By Joshua Wood, LPC

Last updated on Feb 08, 2024

Summary: An expat should search for a home to buy in Indonesia by researching the local real estate market and consulting with a real estate agent who is familiar with the area. It is important to consider the location, size, and price of the property. Foreigners are allowed to own property in Indonesia, but there are restrictions on the type of property that can be purchased. Generally, foreigners are only allowed to purchase freehold properties, such as apartments, villas, and houses. Houses in Indonesia typically include amenities such as air conditioning, a kitchen, and a bathroom. Some houses may also include a swimming pool, a garden, and a garage.

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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:

"The company has a Family Liason Officer that assisted us along with 2 respresentatives from Expat Relocation. All of them assisted us from finding a home, leased furnitures, picked fabric (from curtains to sofas) and decorate," said one person in Jakarta.

"Finding a place to live in Indonesia depends largely on your budget and preferences. Consider if you prefer to rent or buy a property and in what type of city or area you would like to live in. Research the options available for rental or purchase in various regions - for example, property rental websites, real estate agencies and newspapers. Due to the large population in Jakarta, there are many housing options available in the capital city. Consider if you would like to live in a city centre or outskirts and narrow down your search accordingly. Alternatively, if you have a specific area in mind, contact local estate agents and ask for advice. If you need assistance in viewing properties, you can find a property viewing service online," said one expat who made the move to Indonesia.

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

"Most of Expat families particularly with children have larger house and swimming pool has to be included. If no house is available with swimming pool, they family mostly end-up in a compound with various expat lives from different companies. For couples with no children, they mostly stay in a serviced apartment," said one person in Jakarta.

"Expat homes and apartments in Indonesia are typically comfortable, furnished with modern amenities, and often include a balcony with a beautiful view of the surrounding area. Most expats enjoy living in Indonesia as the country provides a tropical climate and a slower pace of life. With a vibrant culture, great food, and friendly people, expats often find themselves well integrated into their local communities. Expat apartments usually come equipped with air-conditioning, high-speed internet, and plenty of space to enjoy entertaining and family life. Expats may choose to live in luxury apartments with private pools, outdoor patios and outdoor gardens or opt for more modest apartments. Additionally, expats can also find townhouses or villas that offer a greater sense of privacy," remarked one foreigner who made the move to Indonesia.

Universal Tax Professionals

We are a U.S. tax firm specializing in taxes for Americans living abroad. We offer expert guidance on navigating the complexities of filing overseas income, foreign asset reporting, and ensuring compliance with both U.S. and international tax regulations. Universal Tax Professionals is a team of experienced experts well-versed in the latest tax laws, including the nuances that apply to expatriates.

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Click connect to have our partner contact you via e-mail and/or phone.

Universal Tax Professionals

We are a U.S. tax firm specializing in taxes for Americans living abroad. We offer expert guidance on navigating the complexities of filing overseas income, foreign asset reporting, and ensuring compliance with both U.S. and international tax regulations. Universal Tax Professionals is a team of experienced experts well-versed in the latest tax laws, including the nuances that apply to expatriates.

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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:

"Right now, we've just continued the leased from the previous family but the ball park would be $1,000/month with 3 security guards on 8 hours rotation provided by the company. $1,000-2,000/month is the average cost of leasing a house. Apartment, I don't know," said one expat in Jakarta.

"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," remarked one member in Indonesia.

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.

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 person living in Indonesia.

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," wrote one expat who made the move to Indonesia.

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 foreigner living in Indonesia.

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," explained one person living in Indonesia.

About the Author

Joshua Wood Joshua Wood, LPC is one of the Founders of Digital Nomad Exchange and serves as Co-President of Expat Exchange. Prior to Expat Exchange and Digital Nomad Exchange, Joshua worked for NBC Cable (MSNBC and CNBC Primetime). Joshua has a BA from Syracuse and a Master's in Clinical and Counseling Psychology from Fairleigh Dickinson University. Mr. Wood is also a licensed counselor and psychotherapist.

Some of Joshua's articles include Pros and Cons of Living in Portugal, 10 Best Places to Live in Ireland and Pros and Cons of Living in Uruguay. Connect with Joshua on LinkedIn.

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Ubud on Bali Island, Indonesia
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