Visa4bali – It is no secret that the island of Bali is a dream tourist destination for many people. Because of this, many people are interested in owning property in Bali. This is certainly related to the tourism sector in Bali which is so good. However, recently as a result of the COVID-19 pandemic, the tourism sector has experienced a very sharp decline, and many people have even lost their jobs. For this reason, people’s interest in the property sector has decreased slightly.
But actually, this property business is very promising for the future because it is a pretty good long-term investment. Indeed, not all foreign nationals can buy property in Indonesia, but the Indonesian government has issued regulations and policies that foreign citizens can buy houses and or apartments in Indonesia. This policy has been issued by the government since 2015. So for you (if you are a foreign citizen) who want to own a house in Bali, how do you do it? And what are the criteria for a foreign citizen who is allowed to buy and invest in the property world in Indonesia? Let’s look at the following information, okay?
Conditions for Foreigners to Buy Property in Indonesia
Based on government regulations, foreigners who are located in Indonesia and are not Indonesian citizens but whose existence still provides benefits, do business, work or invest in Indonesia, will be allowed to own property in Indonesia. This also applies to the island of Bali because Bali is still part of the territory of Indonesia. Then what types of property can be owned by a foreign citizen?
There are 2 types of housing that can be purchased and owned by foreign nationals, the first is a residential house. Single house is a landed house which has its own plot. And the second type of housing that can be owned is an apartment (flat).
If you want a private and comfortable and quiet atmosphere, then it is better to buy a landed house. However, it turns out that many foreign nationals who own residential properties in Bali choose to buy apartments. Why is that? Because the apartment will usually be located in the middle of the city, the quality is premium and safe.
Then what are the conditions if a foreign citizen wants to take a house or apartment?
KITAS is a limited stay permit card issued by the ministry of law and human rights which is still active and is the main requirement.
Private Employee Status
Foreign nationals who wish to take credit or buy property in Indonesia must have the status of a private employee at a company registered in Indonesia. Usually the bank will not process the application if the foreign citizen is an entrepreneur. This is because to reduce the risk if the foreigner returns to his country when his business in Indonesia is not going well (bankrupt).
The bank will ask for proof of the foreigner’s status as a private employee at a company operating and registered in Indonesia, for that a working copy of the foreign national is required from the company where the foreigner works.
Interview the HRD where the foreigner works
To further confirm the status of the foreigner, the bank will usually contact and conduct an interview with the HRD where the foreigner works to find out the details of the work contract, the purpose of the foreigner to work and the length of the work contract.
The credit term is usually shorter than the length of the work contract or KITAS. This is to minimize the risk of default by foreigners.
Lowest Price Limit That Can Be Purchased
To maintain the availability of cheap and affordable property for Indonesian citizens, foreigners can only buy properties in Bali with prices above 2 billion rupiah for apartments. And for landed houses, foreigners can buy at a minimum price of 5 billion rupiah.