Indonesia is undertaking reforms to strengthen governance in the country’s property industry. Government Regulation No. 28 of 2025, issued in early June, reclassifies property brokerage from a low-risk to a medium-high-risk business.
In addition to being required to have a Business Identification Number (Nomor Induk Berusaha), the regulation also emphasizes the importance of competency certification for property sales personnel. This certification becomes a mandatory requirement for anyone wishing to legally practice as a property brokerage intermediary in Indonesia.
“With this change, all sales and marketing personnel are required to hold a certificate. It’s not just about avoiding legal sanctions, but also about building consumer trust and creating a more transparent and professional property market,” said Clement Francis, Chairman of the Indonesian Real Estate Broker Association in Kuta, Badung, Monday (28 July 2025).
Push Against Illegal Foreign Brokers
The implementation of this new regulation is particularly timely as Indonesia confronts the growing issue of illegal foreign brokers operating within its property market.
Clement clarified that while foreigners can legally operate within the sector by establishing a legitimate legal entity and adhering to Indonesian law, they are not permitted to act as property sales intermediaries themselves.
This crucial distinction means that the actual sales and marketing roles must be performed by certified Indonesian citizens.
Michael Hikma Gunawan as Bali Council of Indonesian Real Estate Broker Association explained that foreigners are not permitted to act as property sales intermediaries. Property marketing must be based on a formal agreement between the owner and the broker.
“The point is we don’t want them to be illegal, because they don’t have certification. Secondly, foreigners are not allowed to sell properties like that. In Bali, many market properties only through social media without having a proper office. This is widespread,” Michael explained.
Although there has been no direct audience with the Governor of Bali, Michael said the association has coordinated with Immigration to crack down on such violations.
“If we find out such practices, we usually document them and hand them over to Immigration, because they are the ones authorized to take action,” he added.
Read More : The Rise of Illegal Villas, Tax Evasion & Foreign Ownership Concerns
Other Obligations for Property Brokers
This shift in risk classification from low to medium-high also imposes additional requirements that must be met by Property Brokerage Companies in Indonesia, including:
1. Property brokers must have a written agreement with their clients and disclose data/information in accordance with statutory regulations.
2. For activities involving property management services and property investment consultancy, companies must be supported by at least one expert specializing in property management and investment.
“All Property Brokers must be Indonesian citizens whose work involves property brokerage. At least one expert must specialize in property brokerage management,” said Iqbal S. Shotwan, Director General of Domestic Trade at the Ministry of Trade.
3. Each expert must be equipped with:
🌟 A copy of a competency certificate issued by an authorized institution
🌟 A statement confirming the expert is not registered with any other similar business entity
🌟 A resume or curriculum vitae
Read More : Indonesian Govt Moves to Eliminate Fraudulent Property Brokers
Secure Investment with Seven Stones Indonesia
The evolving landscape of Indonesian property regulations demands both expertise and a reliable partner to protect your interests. At Seven Stones Indonesia, our commitment to professionalism and legal compliance ensures seamless and secure property transactions for all our clients.
Whether you are looking to buy, sell, or invest in Indonesia, our knowledgeable team is here to provide the guidance you need. Confused about this new regulation or curious about our property listing? Let’s talk. Reach out to us today to book your first 30-minute free consultation with our real estate team.