Buying property as an expat in Indonesia and financing it with a mortgage was once considered nearly impossible. But recent regulatory changes have opened doors for foreign residents to own homes with credit facilities. If you’re an expat eyeing that modern apartment in Jakarta or a family villa in Bali, the good news is that several Indonesian banks now offer mortgages in Indonesia (KPR – Kredit Pemilikan Rumah) to foreigners under specific conditions.
However, navigating Indonesia’s real estate market as a foreigner comes with unique challenges. Regulations limit what types of property you can own and for how long. Banks impose stricter eligibility criteria, higher down payments, rigorous document verification, and shorter loan tenures before approving a housing loan for non-citizens.
This guide walks you through everything you need to know: which banks offer mortgages to expats, what requirements you must meet, and how ownership rules like Hak Pakai (Right-to-Use) and HGB (Right-to-Build) affect your purchase. We’ll answer common questions like “Can foreigners get a home loan in Jakarta?” and provide practical tips so you can finance your dream home with confidence.
Understanding Property Ownership for Foreigners in Indonesia
Before diving into mortgage options, it’s crucial to understand what types of property foreigners can legally own in Indonesia.
Property Title Types Explained
Hak Milik (Freehold Title) – This is full ownership without time limits, but it’s exclusively reserved for Indonesian citizens. Foreigners cannot hold Hak Milik directly.
Hak Pakai (Right of Use) – This is the primary title type for foreign individuals buying landed houses. Hak Pakai grants you the right to use land/buildings for an initial period of 30 years, extendable by 20 years, and renewable for another 30 years—up to 80 years total. This is sufficient for most lifetime ownership needs.
Hak Guna Bangunan (HGB – Building Use Right) – This leasehold title is commonly used for apartments and commercial properties. HGB typically runs for 30 years, extendable by 20 years, then renewable for another 30 years (80 years total). Most condos in Jakarta are sold under HGB, even to Indonesian buyers.
Important Note: If a property currently has Hak Milik (freehold) status, it must be converted to Hak Pakai or HGB before a foreigner can purchase it. Banks will require this conversion before approving any loan.
Minimum Price Requirements
The Indonesian government has set minimum price thresholds that vary by region to prevent speculation and protect the local market:
- Jakarta: Minimum IDR 10 billion (~$660,000) for landed houses; IDR 3 billion (~$200,000) for apartments
- Bali: Minimum IDR 5 billion for houses; IDR 2 billion for apartments
- Other Major Cities (West Java, Central Java, Yogyakarta, etc.): Minimum IDR 1 billion
These thresholds mean expats are generally looking at mid to high-end real estate.
Banks Offering Mortgages In Indonesia to Foreigners
Not all Indonesian banks finance property for non-citizens, but several now have programs specifically for expats. Here are your main options:
Permata Bank Syariah
In June 2025, Permata Bank launched Indonesia’s first comprehensive expat-focused mortgage program called “Permata KPR iB IMBT WNA.”
Key Requirements:
- Valid KITAS (stay permit) required
- Minimum 2 years employment in Indonesia (or 4 years running a local business)
- Net monthly income of at least IDR 25 million (individual, not combined)
- Minimum property value: IDR 2 billion
- Minimum loan amount: IDR 1 billion
- Property must have SHGB (Right to Build) status – if currently freehold, it must be converted first
Loan Terms:
- Up to 60% Loan-to-Value (40% down payment)
- Tenure up to 20-25 years (often capped by work permit length)
- Sharia-compliant (Islamic finance principles)
- Competitive rates for expat programs
Contact: PermataTel at 1500-111 or +62-21-2985-0611
Permata’s program reflects new regulations allowing expat to own property with Hak Pakai titles, making it ideal for luxury apartments in areas like Dharmawangsa or Gatot Subroto in Jakarta.
J Trust Bank
J Trust Bank, backed by a Japanese financial group, actively welcomes foreign residents with flexible mortgage options.
Eligibility:
- Valid KITAS/KITAP required
- Must be domiciled in Indonesia
- Age 21+ to apply; maximum age 55 at loan maturity for employees (60-65 for self-employed)
- Minimum 2 years work history for employees; 3 years for entrepreneurs
Loan Features:
- Up to 30-year tenure (though limited by residence permit validity)
- 30-40% down payment typical
- English-friendly service
- Competitive market rates
Contact: Call center at 1500-615
J Trust’s Japanese ties mean they’re familiar with international customers and provide personalized assistance for expat professionals and investors.
Commonwealth Bank Indonesia
Commonwealth Bank (subsidiary of Australia’s Commonwealth Bank) naturally understands expat needs and offers home financing with specific conditions.
Requirements:
- Must reside where the bank and property are located (e.g., both in Jakarta)
- Age 21+ with plan to repay by age 60
- Minimum 2 years work experience (preferably in Indonesia)
- Property must have SHGB status
- 30-40% down payment
- Loan amount up to IDR 15 billion
- Tenure: 3-10 years
Contact: Visit branch offices in Jakarta or their customer hotline
As an international bank, Commonwealth can help arrange fund transfers from overseas and advise on foreign exchange for down payments.
Other Banking Options
OCBC NISP – Currently lists Indonesian citizenship as a requirement for standard KPR, but policies can evolve. Worth inquiring directly, especially if you have an Indonesian spouse who could co-apply. Contact: 1500-999
BCA & Bank Mandiri – Indonesia’s largest banks traditionally focus on Indonesian borrowers but may finance property through a PT PMA (foreign-owned company) structure.
HSBC and UOB – May offer mortgages to priority banking clients on a case-by-case basis, sometimes with offshore financing options.
Developer Financing – Many property developers offer in-house installment plans for foreign buyers. While not bank mortgages, these can be viable alternatives with flexible terms.
Requirements for Mortgages In Indonesia (KPR)
Qualifying for a mortgage in indonesia as an expat means meeting stricter criteria than local buyers. Here’s what you’ll need:
1. Valid Residency Status
KITAS or KITAP is mandatory. Your stay permit proves you’re legally residing in Indonesia and planning to remain.
- KITAS (Temporary Stay Permit): Most foreign professionals, investors, or spouses hold this initially. Banks want to see it’s current and tied to stable employment.
- KITAP (Permanent Stay Permit): Strengthens your profile by showing long-term commitment to Indonesia.
Important: Loan tenure often cannot exceed your permit’s remaining validity or work contract length. If your KITAS has 2 years remaining, banks may only offer 2 years initially, requiring review/extension when you renew.
2. Employment and Income Requirements
Employment History:
- Employees: Minimum 2 years continuous employment in Indonesia
- Business owners: Typically 4 years of operations
- Documentation: Employment letter, business registration, financial statements
Minimum Income:
- Most banks require IDR 20-25 million net monthly income
- Debt-to-income ratio: Monthly payments shouldn’t exceed 30-40% of income
- Some banks only accept individual income, not combined
Credit History:
- Clean Indonesian credit record (BI checking/SLIK report)
- May request credit reference from foreign bank if no local history
3. Down Payment
Be prepared for larger down payments than locals:
- Foreign buyers: 30-50% of property price
- Local buyers: Often 10-20%
Example: 60% LTV (Loan-to-Value) means you must pay 40% upfront.
Having funds already in an Indonesian bank account helps demonstrate financial stability.
4. Required Documentation
Prepare these documents for your application:
Personal Documents:
- Copy of passport with valid visa
- KITAS/KITAP
- Marriage certificate (if applicable)
- NPWP (Indonesian tax number) – mandatory for property transactions
Income Proof:
- Last 3-6 months salary slips
- Employment letter
- Bank statements showing cash flow
- For business owners: Company deed (Akta PT), business licenses (SIUP/NIB), financial statements
Property Documents:
- Property certificate (sertifikat) – must be SHGB or Hak Pakai
- IMB (building permit)
- Latest property tax receipt (PBB)
- Bank will conduct property valuation
Additional Documents:
- Domicile letter proving current address
- Reference letter from current landlord (sometimes)
- Company housing allowance letter (if applicable)
Also Read: How To Get SKTT & e-KTP: Guide For Expat or Orang Asing Indonesia (Update 2026)
The Application Process – Step by Step
Step 1: Property Selection and Verification
Identify properties that meet foreign ownership criteria:
- Correct title type (Hak Pakai or HGB)
- Meets minimum price threshold for your region
- In government-approved areas for foreign ownership
Pro Tip: Work with an expat-focused real estate agent who can verify eligibility before you fall in love with a property.
Step 2: Bank Selection and Comparison
Contact multiple banks to compare:
- Interest rates (expect 8-10% annually for expats)
- Down payment requirements
- Maximum loan tenure
- Fees and charges
- Processing time
Consider working with a mortgage broker familiar with expat loans.
Step 3: Document Preparation
Gather all required documents. This typically takes 2-4 weeks if you need to obtain items like NPWP or updated employment letters.
Engage a notary experienced in foreign transactions to ensure documents are properly prepared.
Step 4: Application Submission
Submit your complete application to the bank. The bank will:
- Verify your documents
- Check your credit history
- Conduct property appraisal
- Assess your financial profile
Timeline: Bank approval typically takes 2-6 weeks depending on complexity.
Step 5: Title Conversion (if needed)
If the property has Hak Milik status, it must be converted to Hak Pakai before purchase. Your notary handles this with the National Land Agency (BPN).
Timeline: 1-3 months for conversion process.
Step 6: Loan Approval and Closing
Once approved:
- Sign loan agreement with the bank
- Sign property deed with notary
- Bank disburses funds to seller
- Title is transferred to your name
- You begin monthly payments 30 days after signing
Important Considerations for Expat Buyers
Currency and Exchange Rate Risk
Mortgages are in Indonesian Rupiah (IDR). If you earn in foreign currency:
- Exchange rate fluctuations can impact repayment costs
- Consider keeping funds in IDR or using hedging strategies
- Some international banks may offer loans in USD or AUD, but IDR loans are more common
Property Taxes and Ongoing Costs
Acquisition Costs:
- BPHTB (transfer tax): 5% of property value above threshold
- Notary fees: 0.5-1% of deal
- Bank fees: Appraisal, arrangement (typically 1% of loan), insurance
- Luxury goods tax: 20% for super-luxury properties (very high thresholds)
Annual Costs:
- PBB (property tax): Less than 0.1% of value
- Property insurance
- Building maintenance fees (for apartments)
If You Sell:
- 2.5% final tax on sale for seller
Long-Term Planning
Consider your timeline:
- If staying only 2-3 years, upfront costs may not justify buying
- Long-term residents or investors benefit most from property ownership
- Indonesian property can take time to sell, so plan accordingly
Exit Strategy:
- If you leave Indonesia, you may need to sell (ownership linked to residency)
- Alternatively, rent out the property for passive income
- Some buyers establish PT PMA to maintain ownership even after leaving
Using a PT PMA Structure
For serious investors, establishing a PT PMA (foreign investment company) provides:
- Ability to own HGB properties through company
- More financing options from major banks
- Suitable for multiple property investments or commercial ventures
Challenges:
- Initial setup costs (tens of millions IDR)
- Ongoing operational expenses (accounting, tax filing)
- Takes 2-3 months to establish
Working with Professionals
Essential team members:
- Real estate agent with expat experience
- Notary skilled in foreign transactions
- Tax advisor for compliance and optimization
- Legal consultant for contract review
- Mortgage broker (optional but helpful)
The cost of professional services (typically 1-3% of transaction value) is worthwhile insurance against costly mistakes.
Recommended Apartments for Expats and Professionals in Jakarta
Best for CBD Access & Daily Commuting
Samara Suites – Gatot Subroto
Ideal for professionals working across Sudirman, Kuningan, and SCBD.
- Close to LRT and main toll roads
- Quiet, business-oriented environment
- Strong rental demand and stable pricing
- Popular with corporate tenants and expats
Casa Domaine – Thamrin
Perfect for executives working in Central Jakarta.
- Walking distance to MRT and Grand Indonesia
- Premium finishing and low density
- Suited for single professionals and couples
How Noble Asia Guides Expats to Secure Property Ownership in Indonesia
Buying property in Indonesia as an expat is no longer an impossible dream. With proper preparation, understanding of regulations, and professional guidance, you can successfully finance and own property in this dynamic market.
Key takeaways:
- Multiple banks now offer expat-friendly mortgages
- Requirements are stricter but achievable with proper planning
- Hak Pakai and HGB titles provide long-term ownership (up to 80 years)
- Professional assistance is invaluable for navigating complexities
- Consider your long-term plans before committing
The Indonesian property market in 2025 presents compelling opportunities for foreign investors, with government support for housing development and potential interest rate cuts making mortgages more accessible. Whether you’re settling in Jakarta long-term or investing in Bali’s booming market, the right preparation and expert guidance can turn your property ownership goals into reality.
Ready to start your property journey? Consult with experienced professionals who specialize in expat property transactions. With the right team supporting you, navigating Indonesia’s mortgage landscape becomes significantly more manageable and your dream Indonesian home becomes achievable.
Noble Asia assists expats at every stage, including:
- Relocation and immigration support (KITAS/KITAP)
- Property sourcing and verification
- Title and legal due diligence
- Bank coordination for mortgage applications
- Post-purchase support
This ensures your property purchase is legal, bankable, and secure.
A trusted housing agent in Indonesia ensures every step of your relocation is handled smoothly, from property search to move-in support.
📩 connect@nobleasia.id
📞 WhatsApp: +62 813 1668 5505
Frequently Asked Questions About Mortgages In Indonesia
Q: Can foreigners get a home loan in Jakarta?
Yes. Foreigners with valid KITAS/KITAP can apply for mortgages from banks like Permata, J Trust, and Commonwealth. Expect stricter requirements than locals: higher income thresholds, larger down payments (30-40%), and documentation verification.
Q: Do I need KITAP or is KITAS enough?
KITAS (temporary permit) is generally sufficient for eligibility. KITAP (permanent residency) strengthens your application by showing long-term commitment but isn’t mandatory. The key is maintaining valid residency throughout the loan period.
Q: What’s the minimum income required?
Most banks require a net monthly income of IDR 20-25 million. Permata Bank specifically requires IDR 25 million individual income (combined income not accepted).
Q: How much down payment do I need?
Foreign buyers typically need 30-50% down payment. If a bank offers 60% LTV (Loan-to-Value), you must pay 40% upfront. This is higher than the 10-20% often available to Indonesian citizens.
Q: What types of property can I buy?
Foreigners can purchase:
- Landed houses under Hak Pakai title (minimum IDR 10 billion in Jakarta)
- Apartments under HGB title in buildings designated for foreign ownership (minimum IDR 3 billion in Jakarta)
- Property must meet regional minimum price requirements
Q: How long can I own the property?
With Hak Pakai, you can own property for up to 80 years total (30 + 20 + 30 year extensions). For apartments under HGB, similar 80-year periods apply with extensions. While not perpetual, this covers most investors’ lifetimes.
Q: Are interest rates higher for expats?
Yes, typically. Expats may face interest rates slightly above local rates (often 8-10% annually vs. 7-9% for locals). Down payment requirements are also higher (30-50% vs. 10-20%) to mitigate bank risk.
Q: Can I buy property with my Indonesian spouse?
Yes, and it can ease the process. Options include:
- Property under Indonesian spouse’s name with freehold (Hak Milik)
- Joint ownership with prenuptial agreement
- Indonesian spouse applies for mortgage (you may co-sign)
This requires careful legal structuring to protect both parties’ interests.
Q: What if I leave Indonesia?
You may need to sell the property or continue renting it out. Some buyers establish PT PMA to maintain ownership even after leaving. Plan your exit strategy based on market conditions and your long-term goals.
Q: How long does the mortgage process take?
Timeline breakdown:
- Document preparation: 2-4 weeks
- Bank approval: 2-6 weeks
- Title conversion (if needed): 1-3 months
- Closing: 1-2 weeks
Total: 2-5 months depending on complexity
