Buying a House in Depok as an Ex-Pat

Life as an ex-pat can be difficult, especially when it comes to finding a place to live. In terms of finding a place to live in Indonesia, it can be even more problematic. There are numerous hurdles that one has to cross in order to obtain Rumah housing in Depok, not all of which are easy to overcome. Actually, until the 1990’s, it was impossible to even think about taking up residence in Indonesia. Let’s discuss this concept a bit further.

The Property Laws of Indonesia

Indonesia had long decreed that only Indonesian citizens could own property within the country. As an ex-patriot, this would have created some serious problems, since you could never legally own property. As the 90’s rolled around however, new laws came into effect ensuring that foreigners could purchase both apartments and offices in Indonesia so long as a strate title was in use. The definition of a strata title is essentially legal certification that the individual in question is allowed to own the building, but not the land it is situated on. 2010 saw the introduction of new laws that allowed the land to be leased, though the law seems to change at the whim of the government.

Hak Pakai

In Indonesia, a law is in effect called Agrarian Law No. 5 of 1960 which helps to dictate the issue of foreign land ownership. Hak Pakai is a category of ownership that gives an individual the rights to build upon or make use of the land in question. This is unfortunately the only recourse for ex-pats under Indonesian law, and under that law, foreigners can only purchase homes or land under the ‘Right to Use’ title.

Strata Deed Titles

When you are purchasing a home through a Strata deed title, you will need to be careful, as securing your ownership of an apartment, even in one that is not free standing, can be very difficult. In 1996 a regulation was introduced, No. 41/1996 which allows foreigners residing in the country to purchase a home, whether it be a house, apartment, or condominium, assuming that it was not part of government subsidized housing. The ‘Right to Use’ deed has different lengths as it is a lease rather than ownership, and foreigners will now be able to lease an apartment/property for a period of up to seventy years. This requires periodic renewal, and it should be noted that under Hak Pakai foreigners will not be able to own a free standing house. Initially, you would have the opportunity to lease for twenty-five years, and then renew it for another twenty-five, and so on. In other words, it would be a lifetime lease, and you could theoretically live there forever so long as you operated within the law.

There are other ways for you to own property, for example you might look at a convertible lease agreement, which means the title stays in the name of the developer/property management firm. Under the Convertible Lease Agreement, the Lessee can in fact become the legal owners of the apartment, and both Lessor and Lessee will be required to sign a deed of sale and purchase. In this case, the title can be transferred to the foreign owners.

Finding the Property of your Dreams

When it comes to finding property in Indonesia you may have your work cut out for you, but that doesn’t mean it is impossible. You will need to start by searching online, especially if you are not in the country, or are unfamiliar with the area.

There are many benefits to shopping online rather than actually driving from place to place. First of all, you will find that searching line gives you access to far more properties than you might have had otherwise. Why exactly? Because rather than depending upon your realtor to find the property for you, you can find what you like, where you like it, and then contact the realtor at your convenience. This is far better than the alternative, and you may also find that it save you a bit of money on the closing cost. Remember, the less time a realtor needs to spend with you, the more work they can get done with other clients. This is not to say that they do not want to spend time with you, but rather that they have many other considerations, and time is money – even more so in this industry than in any other.

Don’t worry, there are plenty of properties in the area, all of which are fabulously priced. Start looking online today and remember to not settle for less than anything that you like. Whether you are planning to make your home here as an ex-pat, or plan to live for only a few years, you’ve made a great decision.