Real Estate & Investing

Whether you are buying, renting, or Building, make sure to get all the neccesary documents

When considering real estate investment in Indonesia, several factors should be taken into account:

  1. Land and Property Investment Plan: A well-defined investment plan is crucial for successful real estate ventures. Identifying the purpose, location, budget, and potential returns on investment are essential steps in formulating a solid plan.

  2. Due Diligence: Conducting thorough due diligence is crucial before finalizing any property purchase. This includes verifying ownership, assessing any existing encumbrances, reviewing land rights, and evaluating potential risks or legal issues.

  3. Status of Land Documents: Validating the authenticity and completeness of land documents is crucial. These may include land certificates (SHM or HGB), land surveys, and any relevant permits or licenses required for the specific property.

Renting property in Indonesia is a common practice, and there are different options available

  1.  Long-term Rental: Long-term rentals are suitable for individuals or businesses seeking extended accommodation or office space. Lease agreements are typically for a year or more and involve negotiations regarding terms, rent amounts, and deposit requirements.


  2. Short-term Rental: Short-term rentals are often facilitated through hospitality management consulting. This involves managing properties as accommodation for tourists or business travelers. Establishing a PT PMA for Hospitality Management Consulting can provide legal entity support for managing such properties.

Construction projects in Indonesia require specific permits and licenses

  1. Perizinan Bangunan Gedung (PBG) Permit: Before commencing construction, obtaining a PBG permit is mandatory. This permit ensures compliance with building codes, safety regulations, and zoning requirements. The approval process involves submitting architectural and structural designs for review by the relevant authorities.


  2. Surat Izin Mendirikan Bangunan (IMB): After completing the construction and obtaining the PBG permit, an IMB is required. The IMB is a building operation permit that certifies compliance with the approved design and permits the property’s occupancy and use.


Real estate in Indonesia presents opportunities for both buyers and renters. Conducting due diligence, verifying land documents, and adhering to legal requirements are essential when buying or renting property. For foreign investors, establishing a PT PMA can provide a legal entity framework for real estate investment or hospitality management consulting.

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