How Foreigners Can Get a Mortgage in Indonesia

Disclaimer: This article is for information only. Since the rules in Indonesia change often, we strongly recommend always talking to a trusted lawyer or financial advisor before making decisions.

Can foreigners get a loan in Bali? Yes, but the rules are stricter.

Mortgage requirements in Indonesia include higher down payments, limited property options, and stricter eligibility since banks consider the risk of foreigners leaving the country.

According to article 186 of Agrarian and Spatial Planning/National Land Agency Regulation Number 18/2021 can be used as mortgage collateral, while leasehold properties are not accepted.

Most banks finance 50–70% of the property’s value, depending on your income and financial background.

Don’t worry. There are still legal ways to qualify, like setting up a PT PMA or applying for an expat loan. Keep reading to find out how.

Key Takeaways

• Foreigners can get property loans in Indonesia, but the process is stricter with higher down payments, limited property types, and eligibility checks.
• Leasehold land can’t be used as collateral—only freehold-equivalent titles (Hak Guna Bangunan) under a PT PMA qualify.
• Financing options include cash purchase, local bank mortgages (e.g., Permata, Commonwealth, J-Trust), loans through PT PMA companies, specialized expat mortgages (like Permata KPR iB IMBT WNA), and developer financing for off-plan projects.
• Mortgage requirements for expats usually include at least 2–4 years of local work or business experience, a minimum monthly income of IDR 25 million, and a property value above IDR 5 billion in Bali.
• Using a PT PMA allows better leverage and long-term growth, letting investors legally own, finance, and expand their Bali property portfolios while staying compliant with Indonesian regulations.

Financing Options for Foreigners Buying Property in Bali

There are several ways for foreigners to get an Indonesian property loan and finance property purchases. Each option has its own rules, advantages, and downsides.

1. Cash Purchase

The simplest way is to buy with cash. It’s quick, straightforward, and avoids all the bank paperwork.
If you have the funds ready, cash payments also give you strong bargaining power with sellers and developers.

2. Local Bank Mortgage

Some Indonesian banks do offer mortgages to foreigners, but it’s the toughest option. Banks in Indonesia that are known to offer loans to foreigners include Commonwealth Bank and Permata Bank.

The challenge is meeting strict requirements, especially proving long-term commitment to Indonesia. That’s why a valid stay permit is a must.

3. PT PMA Company Loan

For serious investors, this is considered the best path. By setting up a foreign-owned company (PT PMA), the property is owned under a local legal entity. This makes banks more confident in lending since they’re dealing with a company instead of an individual.

Setting up a PT PMA usually takes 2–3 months with help from legal consultants and notaries, but once in place, it allows better financing terms and more opportunities.

4. Indonesian Property Loan (IPL) & Specialized Mortgages

To meet rising demand, some banks now provide special loan products for expats (known as Indonesian Property Loan (IPL)). For example, in June 2025, Permata Bank also launched a mortgage program for foreigners called “Permata KPR iB IMBT WNA”.

These options are ideal for foreigners who don’t qualify for a regular bank mortgage but don’t want to set up a PT PMA.

5. Developer Financing

More developers now offer in-house installment plans, especially for off-plan projects. This option lets you pay in stages as construction progresses. It’s easier to qualify for compared to bank loans, and the terms are often more flexible.

Read More: How to Buy Off-Plan Property in Bali for Foreigner (2025)

Indonesian Banks Offering Mortgages to Foreigners

Foreigners living in Indonesia may be eligible to apply for a mortgage to purchase a home or apartment. Below are several banks in Indonesia that currently provide mortgage options for expatriates:

1. Permata Syariah Bank (Permata Bank)

Permata Syariah Bank / Permata Bank offers mortgage facilities for foreigners who meet the following requirements:

• Must have worked and lived in Indonesia for at least 2 years, or operated a business locally for a minimum of 4 years.
• Have a net monthly income of at least IDR 25 million (individual, not combined).
• The property’s minimum purchase price is IDR 2 billion.
• The minimum loan amount is IDR 1 billion.
• The property must hold SHGB (Right to Build) status. If it has SHM (Freehold Title) status, it must first be converted.
• The maximum Loan-to-Value (LTV) ratio is 60%.
• The property must be ready for occupancy.

2. Commonwealth Bank

Commonwealth Bank, an Australian financial institution, also provides mortgage products for foreigners under these terms:

• Borrowers must be between 21 and 60 years old by the end of the loan term.
• Must have a residential address in the same city as the Commonwealth Bank branch handling the loan (applies to residence, workplace, and property location).
• A minimum of 2 years of work experience is required.
• The property must have SHGB (Right to Build) certification.

3. J-Trust Bank

J-Trust Bank, a Japanese-owned bank in Indonesia, offers competitive interest rates and flexible loan terms of up to 30 years. Eligibility criteria include:

• Applicants must reside in Indonesia.
• Minimum age is 21 years at application, and maximum age at loan maturity is 55 years for employees (retirement age) or 65 years for entrepreneurs and professionals.
• Must have a stable income and employment.
• Employees need at least 2 years of total work experience, including prior jobs.
• Entrepreneurs and professionals must have at least 3 years of experience in their current field.

Read More: How Much Does It Cost to Build a Villa in Bali?

Requirements to Get Indonesian Mortgage as Expats

To qualify for a mortgage in Indonesia, expats need to meet the following requirements:

• Nationalities: All, except African territories
• Employees: 2+ years working (including past jobs)
• Self-employed: 4+ years in industry
• Age: 21–57
• Minimum income: IDR 25 million/month
• Loan term: up to 25–30 years

Documents needed:

• KITAS (Temporary Stay Permit) /KITAP/KIMS/KTP WNA
• NPWP (Annual tax return)
• Marriage/birth certificate, prenup (if any)
• Reference letter, company legality
• Bank account statements
• Property collateral document

Documents for self-employed:

• Notary Company Act (Akta PT)
• Trade License (SIUP or NIB)
• Domicile License (SKTU) if any

Note: These requirements may differ by bank, so always confirm the details with your chosen lender when applying for a mortgage.

How to Get a Loan in Indonesia as Foreigner

Indonesian property loan for foreigners may seem overwhelming, but breaking it down into steps makes the process easier to follow. Here’s what you need to do:

1. Consultation & Profile Review: Talk with your property consultant about your investor profile, the project (villa/land), and the project value. They’ll check goals, budget, and repayment options.
2. Title Check & Due Diligence: Verify the land title and run due diligence. This takes a few days and confirms there are no existing mortgages or legal issues.
3. Set Up Your Company (PT PMA): Your consultant will help create your foreign-owned company. This usually takes 3 days to 1 week and requires your passport and signatures.
4. Sign as Company Director & Process the Loan: Once the PT PMA is formed, you can legally sign as the company director. Your consultant will then prepare and submit all loan documents to the bank.

So how long does the loan process take? The timeline can vary depending on the bank, loan type, and your financial profile.

For example, HSBC Indonesia estimates 5 to 10 working days after receiving a complete application, but it may take longer for foreigners who need additional verification.

Read More: Actual Cost of Living Comfortably in Bali for Expats

Minimum Property Price for Applying Mortgage

According to Government regulation, foreigners must buy above a certain minimum price when applying for a mortgage in Indonesia:

Province	Minimum Property Value (IDR) – Site House	Minimum Property Value (IDR) – Apartment
Bali	5 billion	5 billion
Jakarta	5 billion	3 billion
Banten	5 billion	2 billion
West Java	5 billion	2 billion
Central Java	5 billion	2 billion
East Java	5 billion	2 billion
Yogyakarta	5 billion	5 billion
West Nusa Tenggara	3 billion	1 billion
North Sumatera	2 billion	1 billion
East Kalimantan	2 billion	1 billion
South Sulawesi	2 billion	1 billion
Riau	2 billion	1 billion
Other Provinces	1 billion	1 billion

Types of Property Foreigners Can Legally Own in Indonesia

Foreign nationals are allowed to own certain types of property in Indonesia, but with a few restrictions and conditions.

Houses

• Luxury Houses / Villa: Must meet the government’s criteria for luxury property.
• Land Ownership: Limited to one land plot per individual or family, with a maximum size of 2,000 square meters.

Apartments

• Commercial Zone Units: Foreigners may own apartment units located within commercially designated areas.

Ownership Duration for Foreigners

Because foreigners cannot own freehold property in Indonesia, there are clear limits on how long they can hold ownership of houses or apartments.

Under Government Regulation (PP) No. 103 of 2015, which outlines property ownership rights for foreigners living in Indonesia:

• Foreigners may own one residential house built on land with Right to Use (Hak Pakai) status for up to 30 years.
• This ownership period can be extended by another 20 years.
• After that, it can be renewed for an additional 30 years, provided all legal conditions are met.

In total, foreigners can maintain property ownership for up to 80 years, depending on agreements and regulatory approval.

Why a Loan Can Help Your Villa Investment in Bali?

Getting a mortgage in Bali is about smart leverage, not just ownership. Financing through a PT PMA allows you to scale your property portfolio while maintaining legal compliance.

For example, Emma buys a leasehold villa for $200K but can’t use it as collateral, so her capital stays tied up for years.

Daniel sets up a PT PMA, purchases a freehold-equivalent villa (Right to Build), and secures financing from a local bank that supports expat-owned companies. With that leverage, he reinvests in another property after a few years of repayments.

Over time, Daniel builds a small portfolio of income-generating villas, while Emma’s single leasehold continues to depreciate as the lease term shortens.

FAQ

1. What is the mortgage rate in Bali?

Conventional mortgage rates in Indonesia typically range from 8% to 10% per year, and foreigners often face slightly higher interest rates compared to local borrowers.

2. How much can I borrow to buy a property in Indonesia or Bali?

Foreign buyers can usually borrow between 50% and 70% of the property’s value.

3. How much deposit do I need to buy a house in Bali?

Most of the time, you’ll pay about 10% as a deposit when signing the agreement, and this money is kept safe by the notary or agent.

4. How much is property tax in Bali?

Property tax is 0.5% of the property’s assessed value, while land tax depends on the region, usually between 0.1% and 0.2%.

5. Can I get a loan for a first property acquisition in Bali?

Yes, it depends on your investor profile. The bank will review your financial background, assets, and project details before making a decision.

Conclusion: Think Carefully Before Getting a Loan in Indonesia

Getting an Indonesian property loan for foreigners may take effort, but it’s definitely possible. For serious investors, setting up a PT PMA is usually the smarter choice, as it offers more security and flexibility in the long run.

Whatever option you choose, it’s always best to work with a trusted real estate agent and legal team—like Ilot Property. We’ll guide you step by step and help you find the financing option that fits your goals.

Got questions about getting a loan in Bali? Drop us a message and we’ll guide you through it, no cost, no pressure.