Job Discussion Forums

[SuperGeniusJonnie]

Rayman, you are quite correct that foreigners cannot own land here in Indonesia. However, it is possible to own an apartment. Even though this is possible, it is not always the case as the possibility of foreigner ownership depends on the type of certificate of ownership. For an apartment the certificate can be either land use or part land ownership (more information at the Indonesian Expat forum).

Regardless of which certificate the property has, foreigners are not able to secure mortgages from domestic banks (provisions are made by some International banks which have business in Indonesia).

I have been informed that current legislation pertaining to foreign land ownership is under revision. How long this may take I cannot even hazard a guess when one considers the figurative and literal mountains of red tape involved.

One should also be aware of the rather large percentage rates levied by Indonesian banks: upwards of 12% and not fixed rate.

I believe that this is the trend in Indonesia with all things credit related. You will notice this the next time you are late paying your credit card bill. Credit cards in Indonesia do not serve the function of credit cards as the interest rate is extortionate. They are, however, useful for special offers and such.

Concerning credit, car loan interest rates range from approximately 4-6% and they are fixed. When one considers the relatively high price of some cars here, it is a pity one could not secure a car loan to buy a house.

S.G.J