Invest in Bali vs Jakarta Apartments: Which Is Better?

When people talk about property investment in Indonesia, many expats immediately think of Bali. But Indonesia also offers other strong options, and Jakarta is one of them.

Surprisingly, it’s not just locals. Many expats are also investing in Jakarta apartments, such as properties in Pakubuwono Menteng here. This area is known for luxury apartments, green surroundings, and lower entry prices compared to many Bali properties.

Both Bali and Jakarta can work as investment choices, but they behave very differently. They differ in rental stability, return potential, risk level, and exit strategy.

Let’s look at each option closer and see which one fits your goals best.

Investing in Jakarta Apartments

Jakarta is Indonesia’s main business city. Most apartment tenants here are long-term renters. They are usually professionals, families, or companies leasing for staff.

This means you can get more stable occupancy while reducing marketing and turnover costs.

According to a Colliers quarterly report, Jakarta apartment rental yields have stayed around 4% over the last three years. This shows that Jakarta apartments work more as stable income assets than fast-growth investments.

Unlike Bali, Jakarta is not a high-growth market. Your results depend heavily on the price you buy at and the exact micro-location of the property.

Rental prices are limited by salaries and strong competition. So your return is mostly decided when you buy, not years later.

Location also matters a lot. Two apartments in the same area can perform very differently. Things like distance to MRT/LRT, access to offices, new nearby projects and walkability can change rent, vacancy rate and resale value.

Another key difference is Jakarta apartment renters are a mix of foreigners and local Indonesians, while Bali renters are mostly foreigners.

Investing in Bali Apartments

When foreigners think about property investment in Bali, villas are usually the first thing that comes to mind, and that’s understandable.

Bali villas have shown strong returns, with ROI reaching up to 18% in some cases. This is largely driven by Bali’s strong tourism market.

Villas are also flexible, as they can attract both short-term holiday guests and long-term renters such as retirees, families, and digital nomads.

That said, apartments also have their own advantages. One of the biggest benefits is price. Apartments are generally more affordable than villas, with an average price of around USD 313 per square foot.

Even so, the return potential remains attractive, with average ROI for Bali apartments typically ranging from 7–12%.

Read More: Cost of Property in Bali 2026: What You Need to Know

Ownership Rules for Foreign Buyers

If you are a foreign investor, ownership rules matter, both in Jakarta and Bali. Foreigners cannot own freehold (Hak Milik) property in Indonesia.

Instead, common options are:

• Leasehold: You buy the right to use the property for a fixed period of time, usually 25–30 years, with extension options.
• Right to Use (Hak Pakai): A legal ownership option for foreigners that allows long-term use of residential property under Indonesian law.
• PT PMA structure: You buy the property through a foreign-owned company in Indonesia, commonly used for investment or business purposes.

Each option has different legal and tax impacts. Learn further here: Can Foreigners Buy Property in Bali? Full Guide for You

Taxes and Transaction Costs

When buying property in Indonesia, these costs usually apply:

• Buyer tax (BPHTB): up to 5%, depending on local rules
• Seller final income tax: usually 2.5%, based on government regulation
• VAT incentives (PPN): sometimes available for new apartments, but it's also depending on government programs and developer eligibility

Read More: Hidden Costs When Buying a Villa in Bali You Shouldn’t Ignore

Which One Fits You Best?

There is no one-size-fits-all answer. Every investor has different goals, and the best choice depends on yours.

Choose Jakarta if you want stable, long-term tenants and predictable income with less seasonality. On the other hand, Bali is better if you want higher return potential, but you need to be comfortable with changing demand.

Conclusion

Jakarta and Bali investments have very different characters. Jakarta returns come from steady occupancy and long-term renters. Bali can offer higher returns thanks to tourism, but income can be seasonal and needs careful planning.

One of the best ways to invest in Bali with lower risk is to work with an experienced local real estate agent like Bali Villa Realty.

Our senior property advisors have helped many expats find villas, land, and apartments that match their goals. Contact us today, share your plans, and let’s make your property dream come true.

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