Property buying guide for Indonesia
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Mortgage in Indonesia in 2024

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Indonesia

Full foreign ownership of land and real estate in Indonesia is generally prohibited. As a result, conventional mortgages secured by property are inaccessible to foreigners. Without full ownership rights, foreigners cannot obtain loans for housing.

One alternative for foreign investors is instalment plans from developers. These programmes allow foreign investors to finance property purchases on more favourable terms, offering a convenient payment plan during the construction period.

From Colonial Imbalances to Citizen-Centric Policies: Real Estate Regulations in Indonesia

The policy of restricting foreign ownership of real estate and access to mortgages in Indonesia is based on historical experience, economic policies, and the commitment to protect citizens’ interests.

During the colonial era, foreign ownership of Indonesian land led to significant economic and social imbalances due to the lack of control over the land by Indonesian citizens. Following its independence in 1945, Indonesia prioritised private land ownership for its citizens as a means of addressing the imbalances that had been created during the colonial era.

Indonesian Mortgage Law

The Basic Agrarian Law (Law No. 5 of 1960) places restrictions on foreign ownership of real estate in Indonesia. In particular, it allows only Indonesian citizens and legal entities to fully own land.

Foreigners can enter into long-term land leases, but cannot directly own freehold properties.

The 1996 Law UU Nomor 4 Tahun outlines the mortgage (Hak Tanggungan) regulations for foreigners, allowing them to be involved in mortgage agreements if the loan is used for real estate construction in Indonesia (Article 10, Paragraph 1).

Bali real estate 343 listings on Tranio
Turnkey apartments with ocean views in a residential complex surrounded by greenery, Uluwatu, South Kuta, Bali, Indonesia for From $304,000 From $304,000
Turnkey apartments with ocean views in a residential complex surrounded by greenery, Uluwatu, South Kuta, Bali, Indonesia

Completion in: 2026.I Total of 44 apartments

New complex of apartments and furnished villas with swimming pools and panoramic views near the beach, Ungasan, Bali, Indonesia for From $171,000 From $171,000
New complex of apartments and furnished villas with swimming pools and panoramic views near the beach, Ungasan, Bali, Indonesia

Completion in: 2025.IV 33 units in total

Duplex apartment near the prestigious Melasti Beach, Bali, Indonesia for From $86,000 From $86,000
Duplex apartment near the prestigious Melasti Beach, Bali, Indonesia

Completion in: 2025.I Total of 18 apartments

New complex of furnished apartments with a swimming pool and a view of the ocean, Bali, Indonesia for From $147,000 From $147,000
New complex of furnished apartments with a swimming pool and a view of the ocean, Bali, Indonesia

Yield 12.0% Completion in: 2025.I

New residential complex of apartments and townhouses in Nuanu, Bali, Indonesia for From $162,000 From $162,000
New residential complex of apartments and townhouses in Nuanu, Bali, Indonesia

Completion in: 2025.II Total of 50 apartments

Apartments and villas in a quiet rainforest area with ocean views, Melasti, Bali, Indonesia for From $326,000 From $326,000
Apartments and villas in a quiet rainforest area with ocean views, Melasti, Bali, Indonesia

Completion in: 2025 20 units in total

New residential complex with swimming pools, a spa and a restaurant near the ocean, Pererenan, Bali, Indonesia for From $91,000 From $91,000
New residential complex with swimming pools, a spa and a restaurant near the ocean, Pererenan, Bali, Indonesia

Yield 11.0% Completion in: 2026.III

First class beachfront complex of villas and townhouses with a huge swimming pool and restaurants, Melasti, Bali, Indonesia for From $249,000 From $249,000
First class beachfront complex of villas and townhouses with a huge swimming pool and restaurants, Melasti, Bali, Indonesia

600 units in total

Instalments as an alternative to mortgages in Indonesia

In Indonesia, developers are offering instalment plans as an alternative to mortgages for foreign buyers. These plans facilitate the de-facto bypassing of ad hoc bureaucratic obstacles, thus creating transparent and favourable conditions for property purchases.

Instalment terms, including interest and payment schedules, are agreed upon individually with developers.

In Indonesia, instalment plans are often interest-free, with payments spread over months or years without additional surcharges and rates.

Common Instalment Plans in Indonesia

30–50%

Downpayment

40–60%

During construction

10%

Upon handover

Houses for sale in Bali 274 listings on Tranio
New complex of apartments and furnished villas with swimming pools and panoramic views near the beach, Ungasan, Bali, Indonesia for From $171,000 From $171,000
New complex of apartments and furnished villas with swimming pools and panoramic views near the beach, Ungasan, Bali, Indonesia

Completion in: 2025.IV 33 units in total

Apartments and villas in a quiet rainforest area with ocean views, Melasti, Bali, Indonesia for From $326,000 From $326,000
Apartments and villas in a quiet rainforest area with ocean views, Melasti, Bali, Indonesia

Completion in: 2025 20 units in total

New residential complex with swimming pools, a spa and a restaurant near the ocean, Pererenan, Bali, Indonesia for From $91,000 From $91,000
New residential complex with swimming pools, a spa and a restaurant near the ocean, Pererenan, Bali, Indonesia

Yield 11.0% Completion in: 2026.III

First class beachfront complex of villas and townhouses with a huge swimming pool and restaurants, Melasti, Bali, Indonesia for From $249,000 From $249,000
First class beachfront complex of villas and townhouses with a huge swimming pool and restaurants, Melasti, Bali, Indonesia

600 units in total

Complex of apartments and townhouses with swimming pools and green landscape, Ubud, Bali, Indonesia for From $112,000 From $112,000
Complex of apartments and townhouses with swimming pools and green landscape, Ubud, Bali, Indonesia

Completion in: 2025.II 40 units in total

New residential complex with a swimming pool and a view of the ocean close to Melasti Beach, Bali, Indonesia for From $311,000 From $311,000
New residential complex with a swimming pool and a view of the ocean close to Melasti Beach, Bali, Indonesia

Yield 16.0% 51 units in total

New freehold complex of apartments and villas in Bukit, Bali, Indonesia for From $127,000 From $127,000
New freehold complex of apartments and villas in Bukit, Bali, Indonesia

Completion in: 2025.IV 48 units in total

Premium apartments and villas with large rooftop and outdoor cinema, Changgu, Bali, Indonesia for From $127,000 From $127,000
Premium apartments and villas with large rooftop and outdoor cinema, Changgu, Bali, Indonesia

Completion in: 2025.III 38 units in total

Property Purchase in Indonesia for Foreigners

Purchasing property in Indonesia is a straightforward process, requiring only a passport with at least six months of validity.

The entire transaction can be completed remotely. Contact our experts to find property in Indonesia online.

Contact us

Once all agreements have been finalised, the investor and developer enter into a contract that outlines each party’s obligations, the property transfer process, and the payment procedure.

It is common for developers to offer management services for the property, which are regulated by a separate agreement if the investor plans to transfer management responsibility.

Once the purchase has been completed and the final instalment has been paid, the sales contract is notarised and the new owner is entered in the local property register as the legal owner for the lease period.

How can you get Mortgage (Instalments) in Indonesia

The purchase of property from a developer in instalments starts with the reservation of a property by paying an Expression of Interest (EOI).

Once an expression of interest has been submitted, the purchaser must sign an agreement with the developer. Investors might be willing to provide:

  • passport with at least six months of validity;
  • сapital for the down payment of 30–50% of the property’s total cost.

Prior to finalising the agreement, investors may request documentation from the developer to verify the legitimacy of its operations. Typical documents provided by the developer include:

  • вuilding permit (Persetujuan Bangunan Gedung);
  • land title certificate;
  • land tax receipt (PBB);
  • Indonesian account and tax numbers.
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    Property buying guide for Indonesia
    Article 3 of 5
    Tranio’s managers offer advice on buying real estate in Indonesia
    Marina Filichkina
    Marina Filichkina
    Head of Sales Tranio Thailand, Europe
    +44 17 4822 0039
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