Existing user? Sign in
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Free Guide to Hiring a Real Estate Lawyer
Or refine your search by selecting a city:
Mortgage law in Indonesia is governed by a combination of national legislation and local customs. The primary legislation concerning mortgages is the Agrarian Basic Law of 1960, which outlines the principles of land ownership and the types of land rights that can be used as security for a mortgage. Mortgages in Indonesia are typically referred to as "Hak Tanggungan" and are registered with the local Land Office (Badan Pertanahan Nasional or BPN) to ensure their legality and enforceability. The system is designed to protect both lenders and borrowers by providing clear regulations and procedures for securing and foreclosing on mortgages.
Individuals may need legal help with mortgages in Indonesia for several reasons:
Some of the key aspects of local laws relevant to mortgages in Indonesia include:
"Hak Tanggungan" is the Indonesian term for a mortgage, which is the security interest granted over property to secure the repayment of a loan.
Foreigners cannot directly own freehold land in Indonesia, but they can obtain a right to use land ("Hak Pakai") which can be mortgaged under specific conditions.
A mortgage must be registered at the local Land Office (BPN) where the land is located to ensure it is legally recognized.
Main risks include changes in interest rates, non-compliance with legal procedures, and potential legal disputes in foreclosure processes.
Yes, refinancing is possible and involves taking a new loan to pay off an existing mortgage, often to achieve better loan terms.
Contact your lender immediately to explore options such as restructuring the loan or temporary payment relief to avoid foreclosure.
Interest rates are typically determined by the central bank's policies and the lender's own risk assessment and cost of funds.
The loan-to-value ratio can vary, but for residential properties, it generally ranges from 70% to 80% of the property value.
There can be registration fees and taxes on financial transactions involved; consulting a tax advisor can be beneficial.
Mortgage tenures in Indonesia usually range from 15 to 25 years, depending on the lender and the borrower's profile.
For additional information, consider reaching out to these resources:
If you need legal assistance with your mortgage in Indonesia, consider taking these next steps:
Lawzana helps you find the best lawyers and law firms in Indonesia through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Mortgage, experience, and client feedback.
Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
Get a quote from top-rated law firms in Indonesia — quickly, securely, and without unnecessary hassle.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.
Refine your search by selecting a city.
