How to Buy Real Estate in Samarinda as an Expat

Buying real estate in Samarinda, the capital of East Kalimantan, Indonesia, is an exciting venture for expats seeking to invest or reside in this vibrant city. Whether you’re looking for a house, apartment, or commercial property, understanding the local property market and regulations is essential. Here’s a comprehensive guide to help you navigate the process of buying real estate in Samarinda.

1. Understand the Legal Framework

As an expat, it’s crucial to familiarize yourself with Indonesia's property laws. Foreigners are not allowed to own land outright, but there are several options available:

• Leasehold Agreements: Foreigners can acquire property through long-term lease agreements that typically last up to 25 years, with the possibility of extension.
• Right to Build (Hak Guna Bangunan): This title allows foreigners to build on land owned by an Indonesian citizen, valid for 30 years with extensions possible.
• Establishing a PMA Company: Setting up a foreign investment company (PMA) is another way for expats to own property, offering more rights, including leasehold and ownership options.

2. Research the Real Estate Market

Before making any purchase, conduct thorough research on the real estate market in Samarinda. Look into property trends, average prices, and areas that suit your lifestyle. Popular neighborhoods among expats include:

• Downtown Samarinda: Offers easy access to amenities and services.
• Near the Mahakam River: Features beautiful views with a more tranquil environment.

3. Engage a Real Estate Agent

Hiring a reputable local real estate agent can greatly simplify the buying process. An experienced agent will have professional knowledge of the market, legalities, and negotiation tactics. They can also assist in connecting you with vetted legal professionals to help navigate the necessary documentation.

4. Verify Documentation and Due Diligence

Before proceeding with a property, ensure that you conduct due diligence. Verify the property’s documentation, including:

• Land certificates
• Building permits
• Previous ownership history

Consult your agent or a legal expert for a thorough examination of these documents to avoid potential disputes or scams.

5. Negotiating the Purchase Price

Once you find a property that meets your needs, it’s time to negotiate the price. Take advantage of your local agent’s expertise, as they can help you understand the fair market value and offer appropriate counter-offers.

6. Making an Official Offer

After negotiations, when both parties agree on the price, you’ll need to make an official offer. This usually involves signing a preliminary agreement and paying a small deposit, which is typically around 1-10% of the purchase price. The deposit is often non-refundable if you withdraw from the deal later.

7. Complete the Sales and Purchase Agreement

Once all agreements are reached, you and the seller will sign a Sales and Purchase Agreement (SPA). This legal document outlines the terms of the sale and the responsibilities of both parties. Ensure your legal representative reviews the agreement before signing.

8. Transfer of Ownership

The final step is the transfer of ownership, which must be conducted in the presence of a notary. You’ll need to present the signed SPA, proof of payment, and other necessary documents. The notary will register the property in your name (or your company’s name if applicable) with the local land office.

9. Understand Ongoing Obligations

After the purchase, be aware of ongoing obligations including property tax, maintenance fees, and local regulations that may affect your property ownership. Staying informed will help you maintain your investment.

10. Embrace Your New Home

With all the legalities taken care of, it’s time to settle into your new property in Samarinda. Explore the local culture, connect with other expats, and enjoy everything this beautiful city has to offer.

Buying real estate in Samarinda can be a rewarding experience if you approach it with the right knowledge and strategy. By following this guide, expats can confidently navigate the complexities