Usually, expats living in Indonesia prefer to rent accommodation because of the limited duration of their stay and the current laws in force. The country has a really vibrant rental market, with accommodation for all types of needs. Below, let's take a closer look at how it all works.
Securing property in Indonesia
When it comes to owning property in Indonesia as a foreigner, Indonesia has one of the strictest legal frameworks in Southeast Asia. For example, foreigners aren't allowed to own freehold land in Indonesia. Under the right conditions, foreigners who are married to an Indonesian or have a residence permit may be able to acquire certain rights and occupy residential property in Indonesia, such as apartments or landed houses, through regulated use-right mechanisms.
As part of their “expat package”, some foreign professionals are entitled to accommodation in Indonesia. In these cases, housing is tied to the duration of the employment contract. If this doesn't apply to your situation, you can choose between several types of accommodation depending on your budget, household size, and preferred location.
Land ownership in Indonesia
As we've established, foreigners do not have access to freehold land ownership in Indonesia. However, Indonesia's property laws have evolved in recent years to allow foreigners who legally reside in the country to acquire use rights (Hak Pakai) over certain residential properties, provided they meet specific eligibility criteria.
Under current regulations, eligible foreigners may acquire Hak Pakai over:
- Apartments (strata-title units), or
- Certain landed houses built on Hak Pakai land
These rights are granted for an initial fixed period and may then be extended, as long as the foreigner continues to meet the residency requirements. While the total duration can theoretically reach several decades, the structure and renewal conditions come down to the property type, location, and any regulations in place at the time.
Foreigners must generally:
- Hold a valid KITAS or KITAP.
- Use the property strictly for residential purposes.
- Meet the minimum property value thresholds set by the government.
These thresholds are revised by the authorities quite regularly, so if you're a prospective buyer, it's really important that you do your due diligence and check the latest figures with a licensed notary or the National Land Agency before going ahead with anything.
Marriage to an Indonesian citizen
As you may well know, foreigners who are married to Indonesian citizens can access property through their Indonesian spouse, as long as a valid prenuptial or postnuptial agreement is in place. If you don't have that agreement or can't prove it when purchasing, then property ownership by the Indonesian spouse may be legally restricted.
Property ownership via a company
Another option you can look at is buying property through a PT PMA (foreign investment company). In this case, the property is owned by the company rather than you. This way definitely gives you more legal certainty compared to informal nominee arrangements, but you'll have to deal with some strict zoning rules and business-use limitations.
Property prices in Indonesia
Buying property in Jakarta really depends on where you're buying. Jakarta is a huge city – the biggest on earth by many metrics. Broadly speaking, apartments average around IDR 30-40 million per m², with prime CBD areas easily reaching IDR 45-100 million per m², while more peripheral districts can fall closer to IDR 18-30 million per m². Your entry-level apartments or smaller homes may start around IDR 900 million to 2.5 billion; mid-range family houses in established areas often sit between IDR 3-8 billion; and fancier luxury homes in prime South Jakarta neighborhoods like Pondok Indah or Kebayoran Baru frequently go above IDR 15 billion, sometimes reaching IDR 50 billion or more. This reflects Jakarta's famously sharp price differences between central, upscale districts and outer areas.
Meanwhile, if you're looking to buy property in Bali, you won't be surprised to find that it usually means paying more than in many other parts of Indonesia. Prices here are strongly driven by location, property type, and quality. As of early 2026, the median house price is around IDR 4.8 billion (that's ≈ $285,000 USD), and most homes fall roughly between IDR 2-12 billion (~$120,000 - $720,000 USD), though luxury villas can easily exceed IDR 15 billion-60 billion+ (~$900,000 - $3.6 million USD). Per square meter, property ranges from about IDR 18 million up to more than IDR 80 million in the prime zones like Seminyak, Canggu, or Uluwatu. Apartments and modest houses often start around IDR 1.6-3.2 billion, mid-range villas around IDR 5.5-10.5 billion, and premium estates can push past IDR 28 billion, reflecting Bali's broad mix of inland/regional and high-demand coastal markets.
How to find accommodation in Indonesia
In the major expat hubs such as Jakarta and Bali, you can find a really wide range of modern, Western-style apartments and houses available for rent. Properties are commonly marketed through:
- Local real estate agents.
- Online property platforms.
- Social media groups and expat forums.
- Word of mouth.
It's quite common for landlords to expect tenants to view properties in person before signing the lease. For this reason, many expats begin with temporary accommodation (hotel or serviced apartment) while they're going around searching for a long-term rental.
Popular areas for expats
- Jakarta: Central and South Jakarta (Kemang, Sudirman, Kuningan) are popular with professionals.
- Bali: Canggu, Seminyak, Ubud, and Sanur attract remote workers and families.
- Secondary cities: Surabaya, Bandung, Yogyakarta, and Medan offer lower rents and growing expat communities.
Indicative monthly rents (approximate)
- Jakarta city center (1-bedroom apartment): USD 250–600
- Jakarta outskirts: USD 140–300
- Bali (villa or apartment): USD 300–800 (really depending on location and amenities)
- Secondary cities: these are usually 30–50% cheaper than Jakarta
Prices really vary so much depending on their location, furnishing, and the services provided.
Should you rent a house or an apartment in Indonesia?
Most expats living in Indonesia rent houses rather than apartments, especially families. You'll notice that houses are widely available across the country, including in suburban and semi-rural areas. Apartments are mainly found in large cities such as Jakarta, Surabaya, Bandung, and Tangerang.
Apartments often provide:
- Security and reception services
- Shared facilities (pools, gyms)
- Easier maintenance
Houses may give you more space and privacy but often require tenants to manage any utilities, maintenance, and security independently.
Budget-conscious expats may want to look at:
- Kost (boarding houses with private or shared facilities).
- Renting a room in a local household.
- Long-term stays in guesthouses or budget hotels.
Rental agreements in Indonesia
Indonesia is one of the few Asian countries where it is common for landlords to require tenants to pay rent in advance for the entire lease term, which is typically a one- or two-year contract. However, the amount (including potential payments) and duration can often be negotiated through a rental agency. Furthermore, given the exponential increase in available living space in Indonesia over the last few years, the bargaining power of tenants has increased tenfold. As a result, you should have no trouble negotiating payment of your rental in installments or even paying your rent monthly. Be aware, however, that the latter option is quite rare across Indonesia.
In Indonesia, rental is normally quoted in US dollars. However, keep in mind that all rentals must be paid in Indonesian rupiahs. The price of accommodation quoted in US dollars is usually exaggerated. As for the payment method, you should be able to negotiate the cost of your rent with the landlord. Be careful when converting dollars to Indonesian rupiahs, as they may be trying to make money at your expense. Also, bear in mind that security deposits are common. You can expect to pay around one to two months' worth of rent for this.
Unfortunately, construction codes are not always enforced on residential properties in Indonesia. In fact, some landlords rent out properties that do not meet safety standards. Given the costs and risks involved, before signing anything, tenants are advised to be very careful when considering a long-term rental commitment. It is important to commission a thorough check of the property, including examining the furniture, structure, electrical system, plumbing, air conditioning and waterproofing. You can hire a specialized company to do this audit. Once again, make sure you get their credentials right before proceeding. Utilities, internet, and community fees may or may not be included – remember to enquire about this!
Make sure that your future home is equipped with a circuit breaker provided by the authorities. While such a device is inexpensive, many landlords will choose not to install it. In that case, it is strongly advised to avoid renting the unit, as this could mean that the electricity might be coming from an illegal source.
Before you sign the lease, you should outline any problems or hazards you have discovered based on the audit report. A formal written list will give you more bargaining power with the landlord to request that defective or missing items be repaired or installed.
Finally, be sure to read your contract carefully and sign it in the presence of a notary, especially if it contains specific terms.
Tips for finding accommodation on a budget
Look outside city centers or popular expat districts.
If you're staying long term, have a look at unfurnished places.
It's always worth negotiating the rent and payment terms, especially for longer leases.
Avoid committing before viewing multiple properties.
Ask other expats for their top recommendations.
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We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
