Investing in Indonesia: Yields, Appreciation & Ownership

The numbers that decide it — rental yields, occupancy, appreciation and the ownership rules and taxes for buying in Indonesia.

Driven by a young, growing population and increasing urbanization.

MetricValueNotes
Urban Population Growth56% · 2035Projected percentage of population living in urban areas.
Millennial Homebuyers50% · 2026Percentage of Millennials at prime age to buy first home.
Housing Deficit11.4 million · 2025Units needed to address national housing shortage.

Attractive yields driven by tourism and a growing rental market.

MetricValueNotes
Average Gross Rental Yield (Bali)6% to 10% · 2025Includes areas like Canggu, Ubud, and Seminyak.
Average Gross Rental Yield (Lombok)8% to 12% · 2025Growing interest in South Lombok.
Average Gross Rental Yield (Jakarta)4% to 7% · 2025Primarily in CBDs and expat zones.

Ownership & Tax — Who Can Buy in Indonesia

BuyerPermittedTenureConditions
Indonesian CitizenYesFreehold (Hak Milik)Unrestricted
Foreign National (residential)ConditionalHak PakaiRight to use: 30 + 20 + 30 years up to 80 total
Foreign National (lease)YesLeasehold (Hak Sewa)20-25 years renewable by agreement
PT PMA CompanyYesHGB (Right to Build)Up to 80 years via foreign-owned company

Investment figures are directional market estimates, not guarantees — actual yields, rates and appreciation vary by property, operator and timing. Verify with a professional before investing.

Indonesia — questions

Can NRIs buy property in Indonesia?

NRIs and OCIs can freely buy residential and commercial property in India (not agricultural land), with purchase funds routed through NRE/NRO banking channels.

Ready to look at homes in Indonesia?

Browse verified listings, or read the full Indonesia property guide.