As Indonesia’s capital, Jakarta is a lucrative property destination for expats. Apart from being the center of the economy, Jakarta is also strategic and has many facilities.
The Best Property for Sale in Jakarta
It’s no surprise that Jakarta and Bali are the most sought-after areas in Indonesia for foreign property ownership. The demand for property market and property investment by foreign nationals, including landed houses, land, and apartments, has been steadily increasing, promising potential for high returns on investment.
Data taken from Rumah123 shows that Jakarta is the top destination for foreigners’ property searches.
During the first quarter of 2024, expats searched most for homes priced between Rp 1 billion and Rp 3 billion, at 34.7 percent. This was followed by prices of Rp 400 million to 1 billion (25.7 percent).
Residences above Rp 5 billion also recorded a reasonably high percentage, at 18 percent.
CBD as the perfect real estate Jakarta for expats
Central Business District (CBD), also known as an integrated business district, is designated as the center of business, commerce, commercial, and recreation in big cities. It is called the economic pulse of a city.
CBD is a one-stop real estate. It centralizes all business, economic, and recreational activities in one area that is easily accessible to the public. This area has access to transportation and entertainment and is also a good place to live.
One of the most prominent characteristics of CBD is the neatness of the area arrangement carried out by the developer. With adequate access to public transportation, a wide selection of options, and wide sidewalks in good condition, CBD is a comfortable place to walk.
For expats interested in buying Jakarta real estate in the CBD area, here are certain areas in Jakarta that have high property value.
Sudirman
This is the most popular areas and has become synonymous with the name SCBD (Sudirman Central Business District) and is located on Jalan Jend. Sudirman is famous for its row of magnificent high-end office buildings, bordering the Hotel Indonesia to the Senayan Roundabout.
Senayan
Located across SCBD from Jalan Jend. Sudirman, ranging from Plaza Senayan and Senayan City malls, Sentral Senayan building, Fairmont hotel to Senayan Golf. This area is a prime location and also supported by adequate transportation such as TransJakarta and MRT.
Mega Kuningan
Located in Mega Kuningan with a characteristic circular area. Mega Kuningan connects Jalan Prof. DR. Satrio, famous for Lotte Avenue, Ambassador Mall, and Kuningan City, with Jalan H.R. Rasuna Said.
Rasuna Epicentrum
This CBD area developed by Bakrieland is located behind Jalan H.R. Rasuna Said, which is lined with high-rise buildings close to Plaza Festival. Until now, the area still has great potential to be further developed towards Menara Imperium, as there are already a number of office and residential buildings.
Gatot Subroto – MT Haryono
Along Jalan Gatot Subroto, starting from Palmerah and crossing Semanggi, Pancoran, and Tebet to Cawang, there are many office buildings and the inner-city toll road.
TB Simatupang
This office building area, crossed by the Pondok Pinang toll road, is located at the south Jakarta or Jakarta Selatan. It starts from Pondok Indah and Lebak Bulus and passes through Fatmawati to Pasar Minggu.
S. Parman
Located in West Jakarta, Jl. S. Parman is lined with high-rise buildings, starting from Palmerah to Grogol and passing Taman Anggrek and Central Park.
Regulation on Jakarta property ownership by expats
Several regulations in Indonesia have regulated the status of property ownership for foreigners so that the property purchased has permanent legal force. First, it is stipulated in Law (Undang Undang) Number 5 of 1960 concerning Basic Regulations on Agrarian Principles (UUPA).
Furthermore, there is Law No. 11 of 2020 concerning Job Creation (UUCK) and its derivatives, namely Ministerial Regulation (Permen) ATR / BPN No. 18 of 2021 concerning Procedures for Applying Management Rights and Land Rights.
The increase in foreigners’ demand for property has occurred since 2022, following the issuance of a Decree of the Minister of Agrarian and Spatial Planning / Head of the National Land Agency Number 1241 / SK-HK.02 / IX / 2022 of 2022 concerning the Acquisition and Prices of Residential Houses / Residences for Foreigners in September 2022 and the Second Home Visa at the end of December 2022.
Based on this provision, the minimum price benchmark for residential units for foreigners is set to vary according to the region, namely IDR 1 billion and IDR 5 billion.
The price limit value has also been lowered compared to the previous price benchmark.
Previously, in the Regulation of the Minister of ATR / BPN Number 29 of 2016, the minimum price limit for residential houses for foreigners was limited to IDR 750 million 10 billion.
Requirements for foreigners to buy property
Foreigners who want to buy property in Indonesia have to spend a lot of money, especially if they want to buy property in the capital city of Jakarta. The reason is that the regulation sets the minimum purchase price of foreigners’ property at IDR 5 billion.
This regulation was made to protect the Indonesian people, especially those with low purchasing power. In addition, foreigners are only permitted to purchase some property types listing: apartments or condominiums, not landed houses or villa.
Using Hak Pakai
Foreigners can buy property in Jakarta using the right to build, or hak pakai. Hak pakai is the right to use and collect products from land directly controlled by a citizen or land owned by another person who authorizes it.
Hak pakai can be used for a certain period of 30 years and extended for a maximum of 20 years. To obtain hak pakai license for foreigners, the original certificate must first be converted into hak pakai, and then a transaction must be carried out with the requirements of a passport and KIM S.
Using Hak Guna Bangunan (HGB)
For companies, they can apply for HGB. If the foreigner has his own company, he can apply for Hak Guna Bangunan (HGB) on land he does not own, with a maximum period of 30 years and an extension of 20 years.
This Building Rights Title can be transferred to another party. Four requirements are required to apply for a Building Rights Title, including the original certificate, copy of passport, tax return for the year ended, and PPH/BPHTB.
Real Estate Jakarta Consultation with Lets Move Indonesia
Buying real estate Jakarta is complex and can take time. You may also need clarification about which locations are good and which are strategic.
If you are buying a property in Jakarta, make sure you speak to LetsMoveIndonesia before you do. We can guide you through all the legal steps you might encounter.
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