Recent Macro

• GDP contracted in 2020, due to the Coronavirus pandemic, but 2021 has seen a positive start, and this is expected to improve further through the year
  
  
• Indonesia ranked 73^rd in the World Bank’s Ease of Doing Business Index
  
  
• The Gross Domestic Product per capita in Indonesia was last recorded at US$ 4,135 in 2020
  
  
• GDP per capita in Indonesia averaged US$ 2,137 from 1960 until 2019 (source: World Bank)

Key info

Currency

• Currency of Indonesia is the Indonesian Rupiah (IDR) - often property prices are pegged to the US$

Climate

• Moist tropical climate with high even temperatures all year round
  
  
• Annual range from the low 20’s to low 30’s ℃ (mid 70’s to upper 80's ℉)
  
  
• Main wet season is December - March and the dry season is May - October 

Tax

• Non-residents are subject to withholding tax of 20% on gross income
  
  
• Transfer tax is levied on the sale of property at a flat rate of 5%

Hospitality

• Travel & Tourism in Indonesia grew by 2.7% in 2019 to an industry revenue of US$ 18bn. This fell dramatically in 2020 due to Coronavirus, but is expected to reach pre-pandemic levels entering 2022

• Number of international tourist arrivals to Indonesia in 2019 reached 16.1m people, up 1.89% from 2018

• Malaysian tourists benefit from the locality of Indonesia, and account for 18% of all international arrivals

Property

• The property market cooled in 2019, with relatively muted price increases of around 1.8%
  
  
• Foreigners cannot currently own freehold properties or land in their own names
  
  
• Foreigners can own properties through a leasehold structure and the normal maximum lease length is 80 years

• Notary / legal fees for purchasing property are generally between 1-2% and paid by the buyer