Published on and written by Cyril Jarnias
Beyond the paradisiacal beaches and cultural vibrancy of Indonesia, a growing community of French people has chosen to settle in this Southeast Asian country, drawn by a lifestyle offering a distinct balance between modernity and traditions.
From Expatriates to Landowners
This article delves into the captivating stories of these expatriates turned landowners, who share the challenges and successes of integrating into an environment as diverse as it is welcoming.
Through their experiences, they reveal how they navigate cultural differences and the unique opportunities Indonesia offers, a land of contrasts where each day brings its share of discoveries and enriching surprises.
Testimonials from French Expatriates in Indonesia: Authentic Stories
Testimonials from French Expatriates in Indonesia: Authentic Stories
“We decided to settle in Bali after several trips that charmed us with the local gentle way of life. Our main motivation was the search for a better quality of life and the opportunity for our children to grow up in a multicultural environment. The purchase was made under a ‘Hak Pakai’ (right to use) since it is impossible for a foreigner to acquire freehold property. The administrative procedures were lengthy and sometimes confusing, especially with frequent changes in local regulations. Despite everything, today our villa is the center of our new life, and every day spent here confirms that this choice has positively transformed our daily lives.”
— Claire & Thomas
“My goal was primarily a financial investment: I set up a PT PMA company to acquire a house to rent to tourists in Bali. The rental yield is interesting, but you have to be vigilant about the legal compliance of the structure — I had to resort to specialized local lawyers to avoid any nasty legal surprises. Checks on the origin of funds have been rigorous lately; you need to be able to justify every bank transfer to the Indonesian authorities. Today I manage my business from Jakarta, where I have fully integrated into the local economic fabric.”
— Jérôme
| Profile | Motivation | Challenges Faced | Benefits Gained |
|---|---|---|---|
| Family with children | Search for a stable and healthy environment; international education | Administrative complexity (Hak Pakai), regulatory instability | Improved quality of life; cultural openness |
| Entrepreneur | Rental investment | Mandatory creation of a PT PMA company; strict bank controls | Attractive financial return; professional integration |
| Retiree | Peaceful retirement preparation | Difficulty accessing suitable medical care; language barrier | Moderate cost of living; pleasant climate |
- List of reported anecdotes:
- A couple recounts having to renew their Hak Sewa lease at the last minute because they failed to anticipate the initial deadline — they emphasize the importance of ongoing administrative follow-up.
- A retired expatriate mentions her difficulties with the Balinese hospital system: “I quickly understood that taking out international health insurance was not optional.”
- An investor describes the culture shock during the notarial process (“here, we still sign a lot on carbon paper!”) but also highlights the human relationships facilitated by the warm welcome of the Balinese people.
Key points highlighted by expatriates:
- The legal impossibility for foreigners to own land or a villa in freehold (“Hak Milik”) requires the systematic use of long-term leases (“Hak Sewa”), rights to use (“Hak Pakai”), or the creation of a local company (PT PMA).
- Legal constraints are frequently mentioned as a major source of initial stress.
- However, many report that their overall perception has been enriched: living in Indonesia has strengthened their adaptability and permanently changed their worldview.
“Buying here requires patience and flexibility… But this adventure has not only given me an interesting profitability but above all an incredible human openness!”
Good to know:
Among the French expatriates who have chosen to settle in Indonesia, several have decided to buy a property, motivated by the idyllic living environment and the investment potential. However, the acquisition path is not without challenges, as proven by Pierre’s experience, who had to navigate administrative and linguistic complexities before settling in Bali. For Anne, buying a villa on the island of Java was an opportunity to better integrate into the local community, even though she had to acclimate to a different entrepreneurial and social culture. Frédéric recounts how the proximity to the sea and a rich local cuisine enhanced his quality of life, despite the necessary adjustments related to local infrastructure. Some, like Sophie, appreciate the prospect of a secure retirement and the profitability of real estate investments, while others, like Marc, highlight the unforeseen financial and legal obstacles they had to overcome. These stories show a diversity of experiences, between enchantment and adaptation, offering a nuanced picture of life in Indonesia for expatriate homeowners.
The Real Estate Purchase Journey in Indonesia: Challenges and Successes
Key steps in the real estate purchase journey for French expatriates in Indonesia:
- Analysis of Legal Restrictions and Choice of Acquisition Structure
- Foreigners cannot acquire freehold property; they must opt for a leasehold (long-term lease, often 25-30 years, renewable).
- Obtaining a residence permit (KITAS or KITAP) is often required to register a property in one’s name.
- Some opt for complex legal structures or go through a local company to secure the investment.
- Property Search
- Using a local real estate agent is recommended to benefit from market knowledge and avoid scams.
- Clearly specify your needs, preferences, and objectives (primary residence, rental investment, etc.).
- Title Verification and Due Diligence
- Verify the legality of land titles, the property’s compliance (IMB – building permit, SLF certificate, etc.), and ensure there are no disputes or debts associated with the property.
- Have documents officially translated if necessary.
- Negotiation and Contract Signing
- Negotiate the price based on market trend analysis.
- Read the contractual terms carefully and ensure legal compliance before any signature.
- Financing and Tax Aspects
- Prepare the required documents for obtaining financing: passport, residence permit, proof of address, bank statements, proof of income, etc.
- Anticipate local taxes and registration fees, which can be high for non-residents.
- Transfer of Rights and Management
- Payment of the agreed amount and transfer of lease rights.
- Possibility of renting out the property once the transaction is finalized.
Specific Challenges Faced by French Expatriates:
- Language barriers: Most administrative and legal procedures are in Indonesian; official translation of documents is mandatory.
- Cultural differences: Negotiation customs, time management, and the perception of property rights differ, which can lead to misunderstandings.
- Local regulations: Restrictions on foreign ownership, complexity of land titles, need for a specific visa.
Expatriate Strategies and Successes:
Several expatriates report having successfully completed their acquisition by surrounding themselves with a local legal advisor and an independent notary to secure each step.
Some recommend prioritizing high-potential areas like Canggu, Ubud, Sanur, or Seminyak, depending on the investment objective (residential or rental).
Strategies such as creating a local company (PT PMA) are used to circumvent restrictions, although this involves additional costs and obligations.
Practical Tips from Personal Experiences:
- Hire a local lawyer or legal advisor to understand all implications and avoid pitfalls.
- Prioritize leasehold to secure the investment and facilitate resale.
- Compare neighborhoods
| Area | Advantages | Disadvantages |
|---|---|---|
| Canggu | Dynamic, popular with expats | High prices, noisy |
| Ubud | Quiet, nature, culture | Less access to the sea |
| Sanur | Family-friendly atmosphere, beaches | More limited market |
| Seminyak | Nightlife, shops | Touristy, dense |
- Anticipate hidden costs: taxes, registration fees, maintenance charges.
- Prepare a solid financial file and have all documents translated into Indonesian.
Reflection on Integration and Sense of Belonging:
Some expatriates explain that the success of their real estate project greatly facilitated their integration, giving them a local anchor and a better understanding of Indonesian culture. Others emphasize that perseverance in the face of administrative and cultural obstacles strengthens the sense of belonging and adaptation to the local community.
Key takeaway:
Real estate is a vector for integration, but it requires rigor, patience, and cultural openness to turn challenges into opportunities.
Good to know:
Buying real estate in Indonesia as a French expatriate involves several key steps, of which establishing a partnership with a local legal advisor is crucial, given the strict and complex regulations regarding foreign ownership. Language barriers and cultural differences can complicate negotiations, hence the importance of mastering some basic Indonesian or relying on interpreters. Despite these challenges, many expatriates succeed by targeting economically growing areas, such as Bali or Jakarta, and by informing themselves about local financing and taxes, although these aspects often require bilateral banking cooperation. Testimonials highlight the importance of building local ties, facilitating integration and fostering a sense of belonging, while encouraging a proactive approach in managing the intercultural and bureaucratic challenges encountered.
Living in Indonesia: Reviews and Experiences of French Expatriates
Positive Aspects Often Mentioned by French Expatriates:
- Attractive cost of living
– Rent 50 to 70% cheaper than in Western Europe
– Restaurant meals from €2-3
– Services (cleaning, transportation, leisure) affordable - Warm welcome from Indonesians
– Locals are known for their kindness and curiosity towards foreigners
– Many expatriates mention the ease of making friends, especially in Bali and Java - Cultural richness
– Festivals, religious ceremonies, and ethnic diversity
– Ubud in Bali is cited as a major cultural center (temples, art centers, workshops) - Real estate investment opportunities
– High rental demand in Bali, especially for villas and apartments
– Investment possible with support from local experts
Challenges Faced by French Expatriates:
- Language barrier
– Few Indonesians speak English outside tourist areas
– Learning Bahasa Indonesia is recommended to facilitate integration - Local administrative system
– Procedures can be lengthy and unpredictable (obtaining visas, work permits, buying property)
– The new digital nomad visa facilitates residency for remote workers but requires a solid file - Cultural differences
– Different hierarchical relationships in the workplace
– Relationship with time and punctuality (concept of “jam karet,” elastic time)
– Pervasive religious practices, requiring respect and adaptation
Testimonials and Concrete Daily Life Examples
| Theme | Examples/Testimonials |
|---|---|
| Support networks | “Thanks to the WhatsApp group ‘Francais Ubud’, I found my roommate in my first week!” |
| Professional integration | “The business workshops allowed me to accelerate my integration and quickly make friends.” |
| Social life | “Participating in Friday evening aperitifs reassured me about my decision to come live here — you never feel alone.” |
| Leisure activities | Surfing, yoga, hiking, diving, culinary discovery, cultural festivals |
| Communities | Facebook groups (“Francophones à Bali”, “Expats Francophones in Bali”), monthly meetups |
Adjustments Needed for Integration
- Learn basic Bahasa Indonesia to gain autonomy
- Respect local customs and participate in cultural events
- Accept a more relaxed pace of life, especially in administrative procedures
- Rely on French-speaking networks for advice, mutual aid, and moral support
Practical Tips for Future French Expatriates
- Prepare a solid visa file, especially for the digital nomad visa
- Contact expatriate groups before departure to facilitate settling in
- Visit several cities (Jakarta, Bali, Yogyakarta) to choose the environment that suits your lifestyle
- Prioritize neighborhoods where expatriates already live to benefit from an active network
- Plan an adjustment period (culture, climate, food)
Leisure and Community Life
- Surfing, yoga, and other sports activities in an exceptional natural setting
- Cultural workshops (batik, traditional dance, Indonesian cooking)
- Regular gatherings among expatriates: aperitifs, themed evenings, discovery outings
- Very active online platforms and discussion groups for organizing events and helping each other daily
“Expatriate networks are the essential foundation of the French-speaking social fabric in Bali. They facilitate settling in, provide support and camaraderie, and allow you to quickly create professional and friendly ties.”
Good to know:
Living in Indonesia offers French expatriates rich experiences in cultural diversity and interesting real estate opportunities, due to a relatively low cost of living and the warm welcome of the inhabitants. However, the language barrier is often cited as a major challenge, requiring basic learning of Indonesian to navigate the administrative aspects of daily life, which are often perceived as complex. To integrate, many expatriates emphasize the importance of connecting with support networks, such as expat groups where practical advice on formalities and daily life circulates. Those who have overcome these obstacles mention the richness of community activities and leisure, with experiences such as exploring local markets and participating in cultural events, which facilitate understanding of the immense diversity of the archipelago. Future expatriates are advised to be flexible and open-minded to fully enjoy this multifaceted country.
Real Estate Investment as Seen by French People Settled in Indonesia
More and more French people settled in Indonesia are taking an interest in local real estate investment, attracted by market growth, geographical diversity, and attractive returns.
Main Motivations of French Expatriates:
- Search for high rental yield, particularly in tourist destinations like Bali or the new capital Nusantara.
- Desire to have a second home or a foothold to enjoy the Indonesian climate and lifestyle.
- Anticipation of capital gains linked to urban development, especially in emerging areas such as Nusantara or Lombok.
- Tax optimization, thanks to double taxation treaties and favorable property taxation (low property tax, reduced rental income tax).
Challenges Encountered:
- Impossibility for foreigners to acquire freehold land, which requires resorting to specific legal structures such as Hak Pakai (right to use), Leasehold (long-term lease, up to 80 years), or using a local nominee (Freehold with backing).
- Complex and changing legal framework, requiring the support of professionals who master Indonesian legislation.
- Risk of non-compliance with contracts or disputes due to lack of knowledge of local customs or failure to verify property titles.
Advantages Perceived by Expatriates:
- Rental yields often higher than those observed in France, especially in Bali (tourist areas) and urban projects in Nusantara.
- Asset diversification outside Europe.
- Acquisition and property management costs generally lower than in major French cities.
Personal Testimonials:
“The purchase of our villa in Bali was made thanks to the advice of other expatriates and a local French-speaking agent. Understanding Indonesian culture, especially the respect for traditional procedures and the importance of relationships, was crucial to securing the transaction.”
“The choice of legal status (Leasehold) was guided by the desire to limit legal risks. The advice of a local notary and the support of a French-speaking lawyer were invaluable in the face of the complexity of Indonesian laws.”
Popular Types of Investments:
| Type of Property | Description | Target Audience |
|---|---|---|
| Vacation homes | Villas or apartments for personal use or rental | Expatriates, investors |
| Rental properties | Houses, apartments, or guesthouses for year-round rental | Investors |
| Commercial/hotels | Small hotels, restaurants, guesthouses | Expatriate entrepreneurs |
| Investments in Nusantara | Participation in new real estate projects | Investors anticipating growth |
Most Sought-After Geographic Areas:
- Bali: Ubud, Seminyak, Canggu, Uluwatu (proximity to beaches, cultural and expat life)
- Lombok: developing, more affordable than Bali
- Jakarta: for urban real estate and condominium apartments
- Nusantara: new capital, speculative appeal and tax incentives
Role of Local Real Estate Agents and the Expatriate Community:
Local real estate agents, often French-speaking or English-speaking, play a key role in securing transactions and understanding the market.
The French expatriate network shares experiences, recommendations for reliable professionals (notaries, lawyers), and feedback on local practices.
- Always verify the validity of property titles and the seller’s reputation.
- Prioritize transactions accompanied by professionals (lawyers, notaries, specialized agents).
- Anticipate Indonesian legislative and tax developments.
- Take into account local culture, especially the need to negotiate and respect customs during transactions.
In summary: Real estate investment as seen by the French in Indonesia is motivated by the search for yield and quality of life, but requires great legal and cultural vigilance. The support of local experts and the sharing of experiences within the expatriate community are essential to succeed in a real estate project in this country.
Good to know:
French expatriates in Indonesia are often attracted to real estate investment due to competitive prices and the potential profitability of rental properties or vacation homes in highly sought-after regions like Bali or Jakarta. However, they face challenges related to restrictive local regulations for foreigners and the need to familiarize themselves with Indonesian culture and laws. Testimonials highlight the importance of using experienced local real estate agents and the support of other expatriates to navigate the complex market. For example, Stéphane, based in Bali, mentions that the expert advice of an agent and local friends simplified the acquisition of his house on the island. Finally, the French generally opt for villas with rental potential, observing a balance between personal housing and investment, while benefiting from the tourism boom.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
