An owner who rents out their house pays a final tax of 10 per cent of the gross amount on the rent. A final tax is a fixed levy that settles the tax on that rent in one go. That is regulation PP 34/2017, in force since 2 January 2018. If a private individual rents, the owner pays that tax themselves. For you as a tenant the definition of "gross" is mostly useful, because it shows everything the tax authority counts as rent: Element Part of the rent according to the tax authority The rent itself yes Maintenance and upkeep yes Security yes Service and other facilities yes The same items in a separate contract yes, even then A room in a boarding house ( rumah kos ) no, that counts as lodging Use that list as a checklist for your own contract: ask for each element whether it is included in the price, and have it written down. In its own example the tax authority calculates with a home let for one year. Ask how and when you pay, and ask for a receipt in the owner's name for every payment.

Living on Bali: your rental contract is also a residence and tax document

On Bali you start by renting, and that contract does more than you think. Without a statement from your landlord you get no SKTT, your registration with Dukcapil, and for the tax authority a rental contract proves that you intend to live in Indonesia. Buying comes later, and then only as a right of use, on Bali from two billion rupiah for a flat.

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Written and checked by Auke on 26 September 2026, against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.

Yes, on Bali you start by renting, and as a foreigner you simply can. What most people don't know: in Indonesia the rental contract is more than an agreement with the owner.

For your registration: the civil registry, Dukcapil, asks for a statement from the owner that they have no objection to your stay.
For tax: the Indonesian tax authority explicitly names a rental contract as one of the papers with which a foreigner shows that they intend to live in Indonesia.

The pitfall: if you rent from someone who won't sign that statement, you get stuck at the counter.

What does your rental contract have to do with your registration?

Within fourteen days of your ITAS being issued you report to Dukcapil for the SKTT, the proof of your home address. If you live with someone, or rent a house or room, the application includes a statement from the owner that they have no objection. On Bali the Badung regency also asks for a letter from the head of the neighbourhood, the Kelihan, a police reporting certificate and the family card of your sponsor for the address. How that counter works further is in SKTT and NPWP in Indonesia.

Have the owner's statement written into the contract. Without that statement no SKTT, and without an SKTT you lack the paper on which, according to Dukcapil, the bank and other services build. Agree before you sign that the owner supplies the statement and the papers of their family card, and that they cooperate when you extend later.

What does your rental contract mean for tax?

The Indonesian tax authority regards a foreigner as a resident taxpayer, in other words a resident for tax purposes, if they are in Indonesia for more than 183 days within twelve months, or are in Indonesia in a tax year with the intention of living there. As proof of that intention the tax authority names five papers:

a KITAP;
a limited stay visa of more than 183 days;
an ITAS;
an employment contract of more than 183 days;
and a residential rental contract.

That makes a one-year contract more than a housing choice. A resident taxpayer declares their income from inside and outside Indonesia as soon as it exceeds the tax-free allowance. How the tax treaty divides that with the Netherlands is in AOW, pension and tax in Indonesia.

What is in the rent?

An owner who rents out their house pays a final tax of 10 per cent of the gross amount on the rent. A final tax is a fixed levy that settles the tax on that rent in one go. That is regulation PP 34/2017, in force since 2 January 2018. If a private individual rents, the owner pays that tax themselves. For you as a tenant the definition of "gross" is mostly useful, because it shows everything the tax authority counts as rent:

Element	Part of the rent according to the tax authority
The rent itself	yes
Maintenance and upkeep	yes
Security	yes
Service and other facilities	yes
The same items in a separate contract	yes, even then
A room in a boarding house (rumah kos)	no, that counts as lodging

Use that list as a checklist for your own contract: ask for each element whether it is included in the price, and have it written down. In its own example the tax authority calculates with a home let for one year. Ask how and when you pay, and ask for a receipt in the owner's name for every payment.

Can you buy later?

Yes, but not as owner. A foreigner with a residence permit can hold a home with a right of use, and the Ministry of Agrarian Affairs sets a minimum price per province for it: on Bali five billion rupiah for a house and two billion for a flat. What that means and why a home in someone else's name is not yours is in buying a house in Indonesia.

Whoever finds all that too much has already found the simplest route: renting, with a contract that records the owner's statement and the facilities. Which residence permit you need for that is in the residence routes to Indonesia.

In Vertrekklaar this is phase 5 of 5 of the journey, step 5.3: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Indonesia or go straight to step 5.3 in the open plan.

What this rests on

The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.

Disdukcapil Batam — registration of a foreigner with an ITAS, with the owner's statement when renting — disdukcapil.batam.go.id
Badung regency — the SKTT for KITAS holders (documents on Bali) — pelayanan-publik.badungkab.go.id
Directorate General of Taxes — tax liability of foreigners, with the rental contract as proof — pajak.go.id
Directorate General of Taxes — the 10 per cent final tax on renting out land and buildings (PP 34/2017) — pajak.go.id
ATR/BPN — decree 1241/SK-HK.02/IX/2022 on the minimum prices of homes for foreigners — jdih.atrbpn.go.id

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