Don’t spend any penny before you read these three essentials in buying property in Indonesia!

Before investing in Indonesian real estate, you must verify three fundamental aspects. Missing any one of these can lead to costly legal disputes or total loss of investment.

Ownership Status

The ownership status of your coveted property has to be clear. Is it owned by an individual or a developer company?

The certificate has to be under the same name as the seller. But what if it is under a different name? Then you have to understand the relationship between the seller and the person or company whose name is listed on the certificate.

• The seller may be the heir of the certificate holder, or in some kind of partnership
• If the status is based on inheritance, make sure all other heirs agree with the transaction
• Ownership can be Freehold (Hak Milik), Right of Use (Hak Pakai), or Right to Build (HGB)
• The period of use is a way to differentiate the three types

Location and Zoning

Once you have a crystal clear view of the ownership status, the next essential thing is the location — specifically the zoning of the desired property.

• A property in a green or farming zone cannot be used for a holiday house
• A property within a sacred area zone will complicate the permit process
• Zoning violations can result in demolition orders and total investment loss

Although many people overlook the risk, it would not hurt to have an insight before committing funds.

Accessibility and Utilities

After you consider both aspects above, you should find more details about the property's accessibility. When you want to build a residence, accessibility is not limited to road access — especially when the location is not roadside.

• Road access — is there a legal right of way?
• Electricity availability and connection costs
• Water supply (PDAM connection or well permit)
• Drainage and sewage infrastructure

A qualified property lawyer can verify all three essentials before you spend any money on the transaction.