Leasing Apartment in Jakarta Q& A  

Leasing conditions vary in every country.  Below are some guides about apartment leasing in Jakarta.

Q :  What kind of apartments are available in Jakarta?

A :  Basically there are 2 types of apartment.

Basic Apartment

You can rent an apartment unit from an individual owner, or an apartment unit managed by the Building Management of the apartment.  Either way, usually rental includes room rental charge, and service charges of the apartment.  Payments and contracts are usually yearly based and paid in advance. 

Service Apartment

Service Apartment usually provides hotel-like services such as housekeeping, breakfast, cable TV, and utilities included.  It can be a bit costly, but convenient, as usually monthly or daily payment is possible. 

Q :  Why is it that payments and contracts are yearly based and paid in advance?  Is it negotiable?

A :  There are no rules that renting apartments should be yearly based, and yes it is negotiable.

However, yearly payments and contracts are widely practiced, and a common method for renting properties (housings, rukos, etc) in Indonesia.  This ensures security of the contract for both parties.It is negotiable only when you have a appropriate reason, but basic apartments do not rent out for monthly payments.  For high-class apartments, many starts only from 2 years contract paid in advance.

A :  Yes, it is.  Deposits are not to cover unpaid rent, but to cover unpaid utilities, damages and so on.

Usually, 1 month rent is charged for a Security Deposit, but there is no fix rule for that.  You should check the required amount, for each apartment are different in their rules.  Some require more, some may ask for other deposits such as telephone deposit and so on.  

TAX Issues

Tax Rule in Indonesia, requires the recipient of the rent (the owner) to pay income tax 10% (withholding) on income from rental.  However, if the lessee is a company, and is paying on its company cost, the liability to pay the owner’s income tax is on the company.

Q :  My company pays me the rent including with my salary.  Do I still have to pay tax?

A :  Not necessarily.

In this case, it is a personal contract which is between the lessee and the owner.  You do not need to report to the tax office, as it is the liability of the owner.  The common practice is though, tax is not reported. 

Q :  If in any case the company is paying, which is more cost saving?

A :  Contract by the company are usually more cost saving.

It depends on the company policy, and the amount of the rental.  Owner’s income tax is only 10%.  However, if the company whishes to pay as a part of an incentive of the salary, salary tax are usually higher and may go up to 30%.  

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