When it comes to purchasing a property in your home country, several financing sources and acquisition methods are available. However, when expanding and diversifying your investment abroad, the solutions are more limited but not impossible. Indeed, foreigners can borrow money in Indonesia and put a mortgage on their property.

Leveraging Your Investment in Indonesia

In contrast to leasehold, an investor buying a freehold becomes the owner of the property. This distinction changes the perspective of the investment, allowing you to leverage your investment and acquire a second property without having to spend cash.


Consider John, who bought a leasehold for 25 years at 100k and still has 25k to invest. While John has to wait 15 years to buy another property, David, who acquires a freehold at 100k, can put a mortgage on his property, borrow 75k, and buy a second property immediately. In 15 years, David can reproduce the same mechanism, having four properties, while John may only own one property with 10 years left on the lease, possibly able to lease a second one.

In 15 years time David can have 4 properties in ownership while with the leasehold John will just own 10 years left on one property and maybe be able to lease a second one Considering that the price will have increased, David will have more than triple its investment compared to John.

Your Guide to Getting a Loan in Indonesia and Bali

Here are some of the questions that you may have on how to get a loan Indonesia

How can I get a loan in Indonesia to buy a property?

Banks in Indonesia are rarely willing to loan money to foreigners due to the risk of them returning to their home countries. However, by setting up a company, foreigners can establish an Indonesian entity with legal representation and identity, enabling them to borrow money.

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

Foreigners can borrow 50% to 70% of the value of the property.

Will this loan be under Indonesian regulation?

OJK regulates bank and financial transactions in Indonesia. By choosing ILA, all transactions are safe and under the regulation of OJK, providing Indonesian and customer regulation protection.

How can ILA help me get a loan in Bali and buy a property?

ILA can assist throughout the process, checking the land certificate for eligibility and ensuring a secure leveraging of your investment to obtain a loan.

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

Yes, depending on your investor profile, ILA’s experts will analyze your profile, assets, and project.

How much will be the interest rate to buy a property?

The interest rate will be a monthly rate based on the investor’s profile, with the borrower making monthly payments to reimburse the loan.

Can I get a loan on a leasehold property in Bali?

No, as a leasehold is not ownership, lenders cannot recover their money on a leasehold and resell something the borrower doesn’t own.

Is this true? Why do other companies not offer this service?

Yes, for years, foreigners faced difficulties borrowing money for property in Indonesia. With companies now able to own property under HGB, opportunities have changed. Traditional banks may not be accessible, but ILA and other market actors offer different solutions, adhering to Indonesian regulations under OJK’s supervision.

How long does it take to get a loan, and what are the steps?

  • Discuss your investor profile, project, and project value with our consultant.
  • Check the land title and perform due diligence, taking a few days to identify any existing mortgages.
  • Assist in creating your company, taking 3 days to 1 week, requiring your passport and signatures.
  • Once your entity is created, you can legally sign as the director of the company for loan document processing.

Is it secure to invest in a property in Bali or the rest of Indonesia?

Security lies in following procedures and rules. Never rush decisions; review legal documents, conduct proper due diligence, and involve third parties. Notaries, real estate agents, and sellers all have an interest in a smooth transaction. Timing is crucial, but patience and a systematic approach are key.

Can you help us review legal documents and perform due diligence on the property?

We are happy to review legal documents for properties you want to buy or lease, ensuring your contract covers your investment.

For more information on property acquisition and obtaining a mortgage in Indonesia, contact us at info@ilaglobalconsulting.com