Yes — but with important restrictions. Indonesian banks only provide mortgage financing on certain property titles. Here’s what you need to know:
✅ Titles That May Qualify for Financing
-
Freehold (SHM – Sertifikat Hak Milik)
- Generally reserved for Indonesian citizens. Foreigners cannot directly own SHM, but it may apply if the property is in the name of an Indonesian spouse or entity.
-
Hak Pakai (Right to Use)
- Can be granted to foreigners with a valid KITAS or KITAP (residency permit).
- Some banks, like Permata and Commonwealth, have created mortgage products for Hak Pakai properties.
-
Hak Guna Bangunan (HGB – Right to Build)
- Often used when a property is held under a PMA company (foreign-owned entity).
- Banks may consider mortgages for PMA structures, depending on compliance and documentation.
❌ Titles That Do Not Qualify
- Leasehold Properties
- Indonesian banks will not finance leaseholds. Buyers must pay cash in full.
- While leaseholds remain popular for affordability, they are outside bank lending structures.
⚠️ Key Requirements
- Valid KITAS/KITAP (long-term stay permit).
- Higher down payments (typically 30–50%).
- Shorter loan terms than locals (often 10–15 years).
- Proof of income and employment in Indonesia.
Why This Matters
Some foreign buyers hope to leverage Other People’s Money (OPM) to purchase Bali leaseholds — for example, putting down 1 Miliar on a 4 Miliar property. While this would open the market dramatically, it’s not permitted under current banking rules. Only Hak Pakai, HGB (via PMA), or specific SHM structures qualify for financing.
Bottom Line:
If you’re a foreign buyer looking for financing, focus on properties with Hak Pakai or HGB under a PMA. For leasehold villas, plan on a full cash purchase.
This clarity will save time and help you match the right buyers with the right properties
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