Foreigners May Purchase Residential Houses with the Following Minimum Prices

PERTANYAAN

Is it true that there is a policy on the minimum house price for foreigners to own? Are there any sanctions if it turns out that the foreigner purchases a house below the minimum price?

ULASAN LENGKAP

This article is an English translation of WNA Bisa Beli Rumah Hunian dengan Harga Minimal Berikut Ini which was written by Dian Dwi Jayanti, S.H., and was published on Wednesday, 8 February 2023.

This article below is an update of the article entitled Requirements For Houses and Apartments that Can be Purchased by Foreigners (Ini Syarat Rumah dan Apartemen yang Dapat Dibeli WNA), which was first written by Tri Jata Ayu Pramesti, S.H., and was first published on Friday, 22 April 2016.

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Provisions on Residential House Ownership by Foreigners

Can foreigners purchase houses? Foreigners who may own a residence or occupancy are foreigners who have immigration documents in accordance with the provisions of the laws and regulations.[1] According to the Elucidation of Article 69 section (1) Government Regulation 18/2021, "immigration documents" are visas, passports or stay permits issued by authorized agencies in accordance with immigration provisions.

Foreigners who have immigration documents issued by authorized agencies may own residences or occupancies in the form of:[2]

1. landed house above the land:

1. Right to Use on State Land; or
2. Right to Use above:

1. Right of Ownership, which is controlled based on the agreement of the granting of Right of Use over the Right of Ownership, with the deed/certificate from Land Deed Official (Pejabat Pembuat Akta Tanah/ “PPAT”); or
2. Right to manage based on land utilization agreements with the holder of this right.

2. multistorey housing which is built on plots of land:

1. Right to Use or Right to Build on a State Land;
2. Right to Use or Right to Build on a Right to Manage land; or
3. Right to Use or Right to Build on a Right of Ownership land.

The acquisition of said residential houses or occupancies may originate from sales and purchases, grants, exchanges, auctions, or other methods that are intended to transfer land rights or Rights of Ownership to Apartment Units.[3] In the event that the acquisition of landed houses is in the form of a Right of Ownership or Right to Build, then it shall be changed into the right to use.[4]

Minimum Price of Residential Houses for Foreigners

Continuing your question, it is true that the ownership of houses for foreigners is limited. Article 186 Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021 stipulates the following limitation of house ownership for foreigners:

1. for landed houses:

1. luxury house category in accordance with the provisions of laws and regulations;
2. 1 plot of land per person/family; and/or
3. land area is 2,000 m² (maximum);

2. for multistorey housing with the category of commercial multistorey housing.

In terms of granting a positive impact on the economy and society, then landed houses may be granted more than 1 plot of land or an area of more than 2,000 m², with a permit from the minister who organizes government affairs in the agrarian sector and spatial planning.[5]

However, this limitation on house ownership for foreigners is excluded from the ownership of residential houses or occupancies by representatives of foreign countries and/or representatives of international agencies.[6]

Then the purchase of new houses/units or old houses/units and the prices of residential houses or occupancies are determined by a decree of the minister,[7] i.e. through Decree of the Minister of Agrarian Affairs and Spatial Planning 1241/2022 which sets the minimum price as follows.[8]

1. Landed House

No.	Location/Province	Minimum Price (IDR/ Rupiah)
1.	Jakarta	IDR 5 billion
2.	Banten	IDR 5 billion
3.	West Java	IDR 5 billion
4.	Central Java	IDR 5 billion
5.	East Java	IDR 5 billion
6.	Special Region of Yogyakarta	IDR 5 billion
7.	Bali	IDR 5 billion
8.	West Nusa Tenggara	IDR 3 billion
9.	North Sumatra	IDR 2 billion
10.	East Kalimantan	IDR 2 billion
11.	South Sulawesi	IDR 2 billion
12.	Riau Islands	IDR 2 billion
13.	Other Regions/Provinces	IDR 1 billion

2. Multistorey Housing Unit

No.	Location/Province	Minimum Price (IDR/ Rupiah)
1.	Jakarta	IDR 3 billion
2.	Banten	IDR 2 billion
3.	West Java	IDR 2 billion
4.	Central Java	IDR 2 billion
5.	East Java	IDR 2 billion
6.	Bali	IDR 2 billion
7.	Special Region of Yogyakarta	IDR 2 billion
8.	Other Regions/Provinces	IDR 1 billion

The minimum price limit for diaspora is 75% of the price limit for landed houses or multistorey housing units as referred to in letter a and b above.[9]

Therefore, to answer your other question, according to our research, there are no sanctions that can be imposed if a foreigner buys a residential house or occupancy below the minimum price that has been determined.

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These are the answers we can provide, we hope you will find them useful.

Legal Basis:

1. Regulation of the Government Number 18 of 2021 on Right-to-Manage, Land Titles, Multistorey Housing Units, and Land Registration;
2. Regulation of the Minister of Agrarian Affairs and Spatial Planning/the Head of the National Land Agency Number 18 of 2021 on Procedures for the Determination of Right-to-Manage and Land Rights;
3. Decree of the Minister of Agrarian Affairs and Spatial Planning/the Head of the National Land Agency Number 1241/SK-HK.02/IX/2022 of 2022 on Acquisition and Prices of Residential Houses for Foreign Citizens.

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[1] Article 69 section (1) Regulation of the Government Number 18 of 2021 on Right-to-Manage, Land Titles, Multistorey Housing Units, and Land Registration (“Government Regulation 18/2021”).

[2] Article 185 Regulation of the Minister of Agrarian Affairs and Spatial Planning/the Head of the National Land Agency Number 18 of 2021 on Procedures for the Determination of Right-to-Manage and Land Rights (“Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021”).

[3] Article 187 section (1) Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021.

[4] Article 187 section (3) Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021.

[5] Article 186 section (2) jo. Article 1 number 36 Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021.

[6] Article 186 section (3) Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021.

[7] Article 187 section (2) Regulation of the Minister of Agrarian Affairs and Spatial Planning 18/2021.

[8] 3^rd Dictum letter a and b Decree of the Minister of Agrarian Affairs and Spatial Planning/the Head of the National Land Agency Number 1241/SK-HK.02/IX/2022 of 2022 on Acquisition and Prices of Residential Houses for Foreign Citizens (“Decree of the Minister of Agrarian Affairs and Spatial Planning 1241/2022”).

[9] 3^rd Dictum letter c Decree of the Minister of Agrarian Affairs and Spatial Planning 1241/2022.