【How to buy a house in Indonesia】”Your Ultimate Guide to Buying a House in Indonesia”

Investing in a house is a long-term commitment and a significant financial decision. Regardless of where you are in the world, buying a house requires careful planning, research, and preparation. In Indonesia, the process of buying a house entails a few steps that must be followed to ensure that the transaction is smooth and successful. In this article, we will discuss the steps involved in buying a house in Indonesia.

Finding the Right Property

The first step in the process of buying a house in Indonesia is to find the right property. You can start by researching online or contacting a reputable real estate agent. It is essential to consider your budget, location, and type of property you want to buy. Once you have found a property that you like, visit the site to inspect it personally. This will give you an idea of the condition of the property, the surrounding area, and whether it is suitable for your needs.

Legal Process

Once you have found the right property, the next step is to complete the legal process involved in buying a house in Indonesia. The process involves several steps, starting with the drafting of a purchase agreement between the buyer and the seller. The agreement must be written in Indonesian, and it must include all the necessary details, such as the purchase price, payment terms, and any other conditions agreed upon by both parties. After the agreement is signed, the buyer must pay a deposit, usually 10% of the purchase price, to show their commitment to the purchase.

The next step is to obtain the necessary permits and certificates from the local government authorities. This includes the land certificate, building permit, and tax identification number. It is essential to ensure that all the permits and certificates are in order to avoid any legal issues later on.

Payment and Transfer of Ownership

The final step in the process of buying a house in Indonesia is payment and transfer of ownership. Once all the legal requirements have been met, the buyer must pay the remaining balance of the purchase price. After this, the seller will transfer the ownership of the property to the buyer by signing the deed of sale at the land office. The buyer must also pay the necessary fees and taxes, including the transfer tax, registration fee, and notary fee.

Buying a house is a significant investment and requires careful planning and research. If you are planning to buy a house in Indonesia, there are several things you need to consider. In this article, we will guide you through the process of buying a house in Indonesia.

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Understanding the Law

As a foreigner, you are not allowed to own land in Indonesia. However, you can own a house on a leasehold basis for up to 25 years, which can be extended for another 25 years. The leasehold agreement is regulated under the Indonesian Civil Code and must be notarized by a public notary.

Finding the Right Property

Once you have decided to buy a house in Indonesia, the next step is to find the right property. You can either hire a real estate agent or search online for properties that meet your requirements. Make sure to visit the property before making any decision and verify all the legal documents.

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Negotiating the Price and Payment

After finding the right property, the next step is to negotiate the price and payment terms. In Indonesia, it is common for buyers to pay a deposit of 10-20% of the total price. The remaining amount can be paid in installments or through a bank loan. It is advisable to hire a lawyer to assist you in the negotiation and ensure that all the legal documents are in order.


Buying a house in Indonesia can be a complex process, but with the right guidance and research, it can be a rewarding investment. Make sure to understand the law, find the right property, and negotiate the price and payment terms carefully. Seek assistance from professionals, including a real estate agent and a lawyer, to ensure a smooth and legal transaction.

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