Indo.Rent

Can foreigners buy property in Indonesia?

Foreigners cannot own freehold (Hak Milik) property in Indonesia. However, they can secure long-term leasehold agreements (Hak Sewa / Hak Pakai) typically lasting 25–30 years, which can often be renewed. This is the most common and legally sound way for foreigners to invest in Indonesian real estate.

What is the difference between leasehold and freehold?

Freehold (Hak Milik) grants permanent ownership and is only available to Indonesian citizens. Leasehold (Hak Sewa) is a long-term rental agreement, typically 25–30 years, available to foreigners. Hak Pakai (Right to Use) is another option available to foreigners holding a valid visa, granting usage rights for up to 80 years.

What are the typical costs when renting in Bali?

Rental costs in Bali vary widely by location and property type. A one-bedroom villa in Canggu ranges from $800–$1,500/month, while Ubud offers more affordable options from $400–$800/month. Annual contracts are common, typically paid upfront. Budget 10–20% extra for utilities (electricity, water, internet, and waste management).

How long are typical lease agreements?

Lease agreements in Indonesia typically range from 1 year (for rentals) to 25–30 years (for leasehold). Villa rentals often require annual contracts paid in advance. Leasehold investments usually offer 25-year initial terms with extension options. Always negotiate extension terms before signing the initial agreement.

Is it safe to rent property online in Indonesia?

Online property platforms like indo.rent provide a convenient starting point, but always verify listings in person before making payments. Request to see original documents, visit the property, and ideally engage a local notary for leasehold transactions. Never send large sums without proper legal agreements in place.