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Indonesia – Property Financing

Mortgages for Foreign Nationals in Indonesia

Indonesia, with its stunning natural beauty and growing economy, has become an attractive destination for foreign nationals looking to invest in property. If you’re considering purchasing real estate in Indonesia, you might be wondering about the availability of mortgages, local lenders, deposit requirements, and responsibilities as a property owner. In this article, we will provide you with valuable information to help you navigate the Indonesian real estate market.

Availability of Mortgages for Foreign Nationals

Indonesia permits foreign nationals to own property and obtain mortgages, albeit with certain conditions and restrictions. Here are some key points to consider:

  • Property Type: Foreign nationals can typically purchase condominiums and apartments in Indonesia. However, ownership of landed properties, such as houses and land, can be more challenging due to restrictions.
  • Residency Status: The type of mortgage and eligibility criteria may vary based on your residency status. Indonesian citizens, permanent residents, and temporary residents (KITAS and KITAP holders) may have different mortgage options.
  • Creditworthiness: Lenders in Indonesia will assess your financial stability, income, and credit history to determine your eligibility for a mortgage. Having a local co-borrower may improve your chances of approval.
  • Loan-to-Value (LTV) Ratio: The LTV ratio, representing the loan amount as a percentage of the property’s value, can vary. It’s common for lenders to finance up to 70% to 80% of the property’s value.

It’s essential to check with local banks and financial institutions for their specific mortgage products and requirements for foreign nationals.

Local Lenders Providing Mortgages

Indonesia has a robust banking sector with several banks offering mortgage services. While many lenders cater to the housing finance needs of residents, some may also provide mortgage solutions for foreign nationals. Here are a few prominent banks and financial institutions in Indonesia:

These lenders offer various mortgage products with competitive interest rates and terms. As a foreign national, it’s advisable to get in touch with these institutions directly or consult with mortgage brokers specializing in international property transactions to find the most suitable mortgage option.

Deposit Requirements for Property Purchases

When buying property in Indonesia, you will be required to provide a down payment, which is a percentage of the property’s purchase price. The deposit requirements can vary based on several factors:

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  • Property Value: The deposit amount may depend on the property’s value. Higher-value properties may require a larger down payment.
  • Regulations and Location: Different regions in Indonesia may have their own property regulations, which can influence deposit requirements. It’s essential to understand the specific rules in the area where you plan to buy property.
  • Residency Status: Depending on your residency status, you may have different deposit requirements. Some regions may require foreigners to make larger deposits.

Typically, buyers in Indonesia are expected to provide a down payment of at least 20% to 30% of the property’s purchase price. In addition to the down payment, you should budget for other costs associated with property transactions, including notary fees, government taxes, and legal fees.

Responsibility for Outstanding Debts

Once you become a property owner in Indonesia, you assume various responsibilities related to the property. Here’s what you need to know:

  • Property Taxes: Property owners in Indonesia are responsible for paying property taxes, which contribute to local government revenue. The tax rates can vary depending on the property’s location and type.
  • Mortgage Repayment: If you have obtained a mortgage, you are responsible for making regular mortgage payments as agreed upon with your lender.
  • Utilities and Maintenance: Property owners are responsible for covering the costs of utilities, maintenance, and repairs on their property.

Before finalizing your property purchase, it’s crucial to conduct due diligence to ensure there are no outstanding debts or encumbrances on the property. A thorough property inspection and legal review can help identify any potential issues.


Investing in Indonesian real estate as a foreign national is possible, but it comes with specific conditions and requirements. Mortgages are available from local lenders, and eligibility criteria may vary based on factors such as residency status and creditworthiness. You should be prepared to provide a down payment when purchasing property, and as a property owner, you will be responsible for property taxes, mortgage payments, and property maintenance.

For more information on mortgages and property purchase in Indonesia, you can visit the official websites of Bank Mandiri, Bank Negara Indonesia (BNI), Citibank Indonesia, and Bank Central Asia (BCA).