The cost of building a house in Indonesia can range from hundreds of thousands to millions of Indonesian Rupiah, depending on various factors such as location, size, materials used, and design.
On average, you can expect to pay anywhere from $128 to $320 per square foot, or Rp 500 million to Rp 1 billion (approximately $35,000 to $70,000) for a small to medium-sized, basic house in Indonesia.
For example, a 1,500-square-foot house in a suburban area could cost anywhere from around $192,000 to $480,000 to build, while a similar-sized house in a prime urban location could cost significantly more.
Additionally, the cost of land, which can be a significant expense, is not included in these estimates. We will get to that in the moment, but first, let’s look at the cost of building a house and what it consists of.
Factors affecting the cost of building a house in Indonesia
Here is a list of elements that could be included in the overall cost of building a house in Indonesia:
Land Cost
Rp 10 million to Rp 100 million (approximately $700 to $7,000) per “are” for land in a suburban or rural area, and up to several hundred million for land in a prime urban location.
Example: A 1,500-square-foot lot in a suburban area could cost approximately $70,000 to $175,000.
Architecture and Design
For professional architecture and design services, Rp 5 million to Rp 20 million (approximately $350 to $1,400).
Example: Hiring an architect to design a 1,500 square foot house could cost approximately $3,500 to $8,500.
Building Permits
Rp 5 million to Rp 10 million (approximately $350 to $700) for building permits and related fees.
Example: Obtaining necessary permits and paying related fees for a 1,500 square foot house could cost anywhere from $2,000 to $5,000.
Labor
Rp 50 million to Rp 100 million (approximately $3,500 to $7,000) for construction labor, depending on the size and complexity of the project.
Example: Hiring workers to build a 1,500 square foot house could cost anywhere from $30,000 to $75,000.
Materials
Rp 100 million to Rp 200 million (approximately $7,000 to $14,000) for building materials, such as concrete, steel, wood, and fixtures.
Example: Building a 1,500 square foot house using basic materials could cost anywhere from $50,000 to $125,000.
Finishing and Furnishing
Rp 50 million to Rp 200 million (approximately $3,500 to $14,000) for finishing work, such as painting, flooring, plumbing, electrical systems, and furnishings.
Example: Finishing and furnishing a 1,500 square foot house could cost anywhere from $25,000 to $75,000.
Miscellaneous & Utility Cost
Rp 10 million to Rp 20 million (approximately $700 to $1,400) for miscellaneous expenses, such as site preparation, equipment rental, and contingency costs.
Example: Hooking up utilities and services for a 1,500-square-foot house could cost anywhere from $5,000 to $15,000.
If you’re planning to build a house in Indonesia, it’s essential to factor in the cost of installing separate water meters, as it can significantly impact your overall budget.
Examples of costs to build a house in Indonesia
Here are 4 examples of building a house in Indonesia based on various factors and the cost to build:
Jakarta | 2150 sq ft
Location: Jakarta
Size: 2,150 Square feet
Materials: Brick walls, concrete flooring, aluminum windows, and a tile roof
Design: Simple design with 3 bedrooms, 2 bathrooms, a living room, a kitchen, and a garage
Estimated cost: IDR 2.5 billion, which is approximately $175,000
Bali | 1,600 sq ft
Location: Bali
Size: 1,600 square feet
Materials: Bamboo walls, stone flooring, wooden windows, and a thatched roof
Design: Minimalist design with 2 bedrooms, 2 bathrooms, a living room, a kitchen, and a garden
Estimated cost: IDR 1.5 billion, approximately $105,000
Surabaya | 2,700 sq ft
Location: Surabaya Size: 2,700 square feet Materials: Concrete walls, ceramic flooring, glass windows, and a metal roof Design: Modern design with 4 bedrooms, 3 bathrooms, a living room, a kitchen, and a pool Estimated cost: IDR 3.5 billion, approximately $245,000
Bandung | 1,100 sq ft
Location: Bandung Size: 1,100 square feet Materials: Brick walls, marble flooring, steel windows, and a clay roof Design: Traditional design with 2 bedrooms, 1 bathroom, a living room, a kitchen, and a terrace Estimated cost: IDR 1 billion, approximately $70,000
Average costs of 1,500 sq foot house
Overall, here are some examples of the cost of building a 1,500-square-foot house in Indonesia, based on different criteria:
Location:
- Suburban area: $192,000 to $320,000
- Prime urban location: $384,000 to $480,000
Materials used:
- Basic materials: $192,000 to $320,000
- High-end materials: $320,000 to $480,000
Size:
- 1,500 square feet: $192,000 to $480,000
- 2,000 square feet: $256,000 to $640,000
- 2,500 square feet: $320,000 to $800,000
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FAQs
Can a foreigner purchase real estate in Indonesia?
Yes, a foreigner can purchase real estate in Indonesia, but with some restrictions. Foreigners are only allowed to purchase a property for a limited period of time and must meet certain requirements, such as having a valid visa or obtaining a special permit.
Can Americans retire in Indonesia?
Yes, Americans can retire in Indonesia. The country has a vibrant expat community, and retirees can enjoy a low cost of living, beautiful scenery, and a rich cultural heritage.
Is it a smart investment to buy property in Indonesia?
Property in Indonesia can provide good returns, but it is also important to consider factors such as the local economy, market conditions, and government regulations before making a decision. Whether it’s a smart investment will depend on your investment goals and risk tolerance.
Is it expensive to live in Indonesia?
In general, the cost of living in Indonesia is lower compared to many other countries, and it is possible to live comfortably on a budget. However, living expenses in popular tourist destinations such as Bali can be higher due to demand. Generally, the cost of living in Indonesia varies depending on location and lifestyle.
