This Agrarian State Minister Regulation explains about the requirements of residences ownership by foreigners, within the frameworks of the implementation of the Government Regulation Number 41 Of 1996 On Residences Ownership by the Foreigners Who Are Domiciled in Indonesia (the “GR No. 41 of 1996”). The Foreigners on GR No. 41 of 1996 are the foreigners who own and maintain the economic interests in Indonesia by implementing an investment to have a residential in Indonesia.

Residential ownership and how to obtain the right of land by the foreigners, are as follows:

  1. Purchase and build the residence on the Right to Use over a state land or the Right to Use over the Right to Own.
  2. Purchase the condominium which is built on the Right to Use over a state land.
  3. Purchase and build the residence on the Right to Own or the Right to Rent of the building which is based on written agreement with the owner of land.

The residence or condominium that can be purchased or built by the foreigners is residences or condominium that is not categorized as simple residences or very simple residences classification.

The acquisition of the right of land and/or residences and the Right to Own of Strata Title unit by the foreigners are carried out in accordance with the procedures according to statutory provisions applicable to the relevant legal actions. While the residences are not used by the foreigners, the residences can be rented by the company in Indonesia based on the agreement between the foreigners and the company.

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Foreigners are obliged to release or transfer to the parties that are eligible in accordance with Article 6 paragraph 1 GR No.41 of 1996 when the foreigners or their family members do not use the residence for 12 (twelve) consecutive months.