In December, President Joko Widodo signed a Government Regulation (Peraturan Pemerintah, PP) on foreign home ownership in Indonesia. The president’s decision to sign the PP was to address the previously ambiguous regulations on the matter of foreign property ownership in Indonesia.
PP No. 103 of 2015 defines foreigners residing in Indonesia as those who do not hold an Indonesian citizenship and who contribute to the country through business, working, or investing in the country.
As stated in the PP, “Orang Asing dapat memiliki rumah untuk tempat tinggal atau hunian dengan Hak Pakai.” This translates to: foreigners can own a house with the Right of Use (Hak Pakai). In this statement, ‘Orang Asing’ relates to foreigners who hold residency permits in Indonesia.
If a foreigner owning property with the Right to Use were to die in Indonesia, the PP states that their house or residence can be inherited to a foreign heir, who must also own a residency permit.
The PP also states that Indonesians married to foreigners have the right to land ownership just as other Indonesians do.
Property which foreigners are now allowed to own are (a) Rumah Tunggal di atas Tanah (houses): (1) Right of Use; or (2) Right of Use over Hak Milik (Right of Ownership); (b) Sarusun (Satuan Rumah Susun) Apartments.
According to the PP, foreigners are allowed to own property for a period of 30 years, which can be extended for another 20 years. The PP mentions the right to renew after extension for a maximum period of 30 years.
PP No. 103 of 2015 also states that if the foreign owner, or foreign inheritor, of a property is no longer residing in Indonesia, they must either release or pass on their property within one year to a qualifying party. Failure to comply within the one-year time frame will result in the government taking control of the property.
Further details on the release or transfer of rights of foreign home ownership, according to the PP, are arranged by the ministry and head of agency in the agrarian sector. The PP effectively applies since the moment it was announced by the Minister of Law Yasonna H. Laoly on 28 December 2015.