Living in Indonesia, A Site for Expatriates

Check out What's New on the Expat Web Site
Information for foreigners moving to Indonesia

Home » Practical Information » Housing Forum

Residential Leasing Guidelines

Practical Information for foreigners, expats and expatriates moving to Indonesia - find out about housing, schooling, transport, shopping and more to prepare you for your stay in Indonesia

Translate this Page

Bookmark and Share
Links to hundreds of articles giving practical information for expats moving to Indonesia
Post your questions or communicate with other expats in Indonesia on the Expat Forum
Looking for a place to stay in Indonesia - check out the Housing Forum
Looking for a weekend or holiday getaway ... visit some of Indonesia's Great Escapes
Advice and resources for conducting business in Indonesia
Info on expatriate community organizations in Indonesia
Shops, Products and Services
Links to other useful Indonesian or expat-related web sites
Expat Humor - spread the joys of Living in Indonesia through e-postcards
Site Map
Return to the Home Page
expatriate information for Indonesia

The companies that employ expatriates are normally responsible for providing housing for their expatriate employees who are relocating to Indonesia. For companies that are new to Indonesia, they will likely encounter unusual leasing practices compared to what they would find in their country of origin. Below you will find the answers to questions we are most frequently asked in regard to the leasing of a house or apartment.

How are rents quoted and paid?

Rents are typically quoted using a USD monthly rental rate, however the rent payment must be paid in Rupiah. It is common practice that the rate of exchange will be determined by the date that the lease is signed. Indonesia is unique, in that, to rent a house or apartment, a lease agreement is signed and the rent is paid in its entirety, before you move in. A lease agreement is typically paid one to two years in advance and for properties located in desirable complexes and neighborhoods the lease may be paid for as much as three years in advance.

Is a security deposit required?

Upon the execution of a letter of intent, the tenant will typically be required to pay a booking fee equal to at least one (1) month of rent. This will either be credited to the advance rent payable by the tenant or will serve as a security deposit which is fully refundable upon the expiration of the lease provided compliance with all lease conditions. Additional deposits are required for telephone lines in apartments.

What is typically not included in the rent?

There are operating costs that are not included in the rent that tenants should budget for, such as electricity (PLN), water (PAM), Internet, and telephone (Telkom).

Maintenance, such as servicing air conditioners, water pumps, etc., as well as minor repairs (typically under US$100) are usually incurred by the tenant. As a rule a standard lease agreement provides for all major repairs (over US$100) to be the responsibility of the landlord; however it is advisable for tenants to negotiate a withholding fee, usually equivalent to 1 month's rent or 10% of the total lease value, that can be utilized in the event that a major repair is not addressed to their satisfaction. Often apartments or houses that are located in a housing compound will also have monthly maintenance fees.

What is the typical lease term?

Lease terms typically vary from one (1) to three (3) years.

Do tenants have automatic renewal rights?

The tenant typically has an option to renew at market rental rate. If the tenant thinks that he/she might be in Indonesia for more than one year, the renewal clause should be included in the original lease. Apartments will typically have a 10-15% yearly rent increase at renewal time, while the house rental increases are determined at the whim of the homeowner.

Do tenants have automatic sublet or assignment rights?

Tenants are typically allowed to sublease the premises during the lease term with the approval of the landlord, if so stated in the lease agreement. In most cases, this is the only way to recover some of the your pre-paid rent, should the expat be repatriated early.

Only embassies may be able to have a diplomatic clause inserted in their lease agreement which allows the embassy to terminate the lease if the expatriate is transferred outside of Indonesia.

Our thanks to Colliers International for their generous contribution of this article!

Last updated October 24, 2016

Housing and schooling information for expats in Indonesia expatriate website for Indonesia Indonesian language translation of article

Practical Information for foreigners, expats and expatriates moving to Indonesia - find out about housing, schooling, transport, shopping and more to prepare you for your stay in Indonesia

Practical Information |  Expat Forum |  Site Map  |  Search |  Home Page |  Contact

Return to top

Copyright © 1997-2018, Expat Web Site Association Jakarta, Indonesia All rights reserved. The information on Living in Indonesia, A Site for Expatriates may not be retransmitted or reproduced in any form without permission. This information has been compiled from sources which we, the Expat Web Site Association and volunteers related to this site, believe to be reliable. While reasonable care has been taken to ensure that the facts are accurate and up-to-date, opinions and commentary are fair and reasonable, we accept no responsibility for them. The information contained does not make any recommendation upon which you can rely without further personal consideration and is not an offer or a solicitation to buy any products or services from us. Opinions and statements constitute the judgment of the contributors to this web site at the time the information was written and may change without notice.