Establishment of a Legal Entity in Indonesia

Mortgage Services

Introduction to the Lets Move Group Legal Entity Establishment Service to Get a Mortgage

As expatriates, we know that living and enjoying Indonesia makes us want to stay in this country indefinitely. However, as we know from National Land Agency Regulation Number 18/2021, it is explained that foreigners are allowed to own a house with the status of land built on state land or private land with a Right to Use Certificate (HPL). Apart from that, foreigners are also allowed to own apartments or condominiums standing on land with Building Use Rights (HGB) status.

Referring to this regulation, it can be ascertained that not all types of property can be purchased by foreigners, even with ownership rights. Foreigners are not allowed to own property with a Certificate of Ownership (SHM). However, as mentioned above, foreigners can still apply to purchase property using a KPR. However, several terms and conditions must be met when applying for a mortgage for foreign residents. One solution is the establishment of a legal entity.

In a mortgage, the business entity itself will act as the borrower. Legal entities can be established for various purposes, such as real estate investment, property ownership, or conducting business activities. With legal entity mortgages, liability for the loan is generally limited to the assets of the entity. This liability protection can be a huge benefit to owners, as their assets are protected from the potential financial risks associated with a mortgage.

Qualifications and requirements for legal entity mortgages may differ from individual mortgages. Lenders may consider factors such as the financial strength and creditworthiness of the entity, the nature of its business or investment activities, and the value and condition of the property being financed. Legal entity mortgages may have different interest rates and terms compared to individual mortgages. Interest rates and terms may vary depending on factors such as the creditworthiness of the entity, the type of property being financed, the loan-to-value ratio, and overall market conditions.

Types of Business Legal Entities relevant to obtaining Mortgage in Indonesia

Obtaining a mortgage in Indonesia can vary depending on the type of business legal entity you operate. Here are the most common entities and their mortgage considerations:

Entitled to Mortgage:

  • Perseroan Terbatas (PT) - Limited Liability Company LLC: Both domestic (PT Penanaman Modal Dalam Negeri - PMDN) and foreign-owned (PT Penanaman Modal Asing - PMA) PTs are eligible for mortgages. They can use the company assets or individual directors' guarantees to secure the loan.
  • Firma (FA) - Partnership: As a non-legal entity, an FA itself cannot get a mortgage. However, individual partners with strong financial standing can act as a shareholder and secure mortgages personally for property related to the business.
  • Commanditaire Vennootschap (CV) - Limited Partnership: Similar to FA, CVs themselves cannot take mortgages. However, limited partners with personal assets can obtain individual mortgages for company-related properties.

Not Entitled to Mortgage:

  • Representative Office: Representing a foreign company, they lack independent legal and financial standing, making them ineligible for mortgages.

It's necessary to seek advice from a mortgage specialist and legal professional to understand the specific requirements and procedures for your new business entity in Indonesia.

Benefits of Choosing Lets Move Group for Establishing a Legal Entity

If you want to establish a legal entity to grow your business in Indonesia, Lets Move Group will be the most reliable legal entity establishment service to fulfil all your business needs hassle-free.

Choosing our Legal Entity Establishment Services from Lets Move Group will provide you with efficient access to opening a business in Indonesia. We are a professional one-stop shop for the complete legal entity establishment process in Indonesia, providing a wide range of services to guarantee a smooth business setup, including Company Registration, Company Mortgage, and other related services.

Our experts are familiar with the business framework in Indonesia and are always ready to assist you and provide the best solutions for your legal entity establishment needs. We also have a comprehensive list of financial institutions and lenders in Indonesia that offer the best mortgage terms and conditions, and we can help you compare and choose the right service for your business.

Frequently Asked Questions

The minimum number of years required for a legal entity to obtain a mortgage in Indonesia is 3-4 years of work experience. This requirement is in place because banks want to know the financial flow of your company before they can process the loan, however, this depends on the working field of your business and can be an exceptional policy if the legal entity has less than 3 years of working experience.

It takes 14-30 working days to complete this process as the lender needs to analyse the financial statements and legality data of your legal entity. This process can take longer as the lender will match each of your financial data.

It depends on the purpose of the purchase. If it is for personal purposes, it will be considered as an asset of your company. However, if it is for office and other commercial purposes, it will acquire different rates and products compared to individual mortgages.

The time required to establish a legal entity in Indonesia varies depending on factors such as the type of entity, the completeness of the documents, and the efficiency of the registration process. The incorporation process can take a few weeks to a few months on average.

Yes, seeking professional assistance from a legal and business consulting firm is highly recommended for the establishment of a legal entity in Indonesia. They can provide guidance on specific requirements, assist with document preparation, take care of the registration process, and ensure compliance with applicable laws and regulations.

To understand our Legal Entity Establishment process, you can refer to our PT Company registration and PT PMA Registration pages. Meanwhile, our mortgage service is FREE.

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Primary Property

Interest Rate

Floating Rate

Primary Mortage

Rate information

Interest rate is 4.7% fixed for the first 3 years, after that, the rate will move to a floating rate (currently 11%)


  • Permanent employee/self-employed for at least 1 year in the same company/total 2 years of work
  • Professional/Businessman working for at least 2 years in the same field
  • At least 18 years old or married

General Personal Requirements

  • Photocopy of husband’s / wife’s ID card (if married)
  • Photocopy of Family Card
  • Copy of Marriage Certificate (if married)
  • Photocopy of Tax ID Number of Applicant
  • Salary Slip / Certificate of Income for the last 1 month original
  • Photocopy of 3 months bank statements
  • Developer’s House Booking Letter / Broker’s Cover Letter