Real Estate

It is common in Indonesian apartment investment to lend for 10 years and enjoy the income gain, then aim for the capital gain from the sale.

With the recent economic development, the number of Indonesians willing to buy their own homes using KPR (Kredit Pemilikan Rumah mortgage) has increased, and major developers are focusing on selling affordable, multi-saleable cluster homes.

In real estate transactions, when the Sertifikat Tanah (Land Deed) is changed in the name, Notaris (Administrative Scrivener) prepares Akta Jual Beli (Certificate of Land Transfer) to certify the transfer of ownership, but prior to that, when the transaction is concluded between the seller and the buyer, the buyer pays Tanda Jadi (Contract Money) or Uang Muka (Advance Money) to the seller and Perjanjian Pengikatan Jual Beli (Reservation Agreement PPJB) is prepared.

In order to sell a property, you will need the KTP, KK (Kartu Keluarga), NPWP (Nomor Pokok Wajib Pajak tax number), spouse KITAS, and a prenuptial agreement (Pisah harta) stating the separate ownership of the property.

Hak Milik (Ownership) is for Indonesian nationals only, Hak Guna Bangunan (Construction Use Right) is for real estate in the name of a company and can be extended for 30 years + 20 years, Hak Pakai (Right to Use) is for houses with fixed-term land lease and can be extended for 25 years + 20 years, and is the only real estate owned by foreign residents (KITAS holders who stay more than 183 days per year).

If an apartment can be sold at any time, the value continues to rise, and there is no fixed cost (even small), then an apartment is an expense if you buy it and rent it as an asset.