The price mechanism for property that can be bought by expats under the “right-of-use” category has been revised by the Indonesian government. Through Agrarian and Spatial Planning Affairs/National Land Agency (BPN) Regulation No. 29/2016 on Procedures for the Granting, Relinquishment and Assignment of Ownership Rights over Residential Homes or Housing by Foreigners Resident in Indonesia, minimum prices set on property has been changed (divided by region and the type of property).
Back in 2015, foreigners were allowed to “own” luxurious apartments and landed houses under the “right to use” category with a minimum price set on the property prices by the Indonesian government in order to protect the Indonesian people in the property market.
The latest revision sets higher minimum prices for expats who want to buy landed houses in Yogyakarta, Bali and North Sumatra. Meanwhile, the minimum price for apartments in Banten has also been raised. Only the minimum price for the purchase (by expats) of apartments in Jakarta has been reduced in a bid to attract property purchases.