There are many challenges which might be faced by a person who enters the real estate business in Indonesia. Among these challenges are those of making proper investments in the business as well as marketing it to the people who are expected to be the business’s primary customers. Every country has its own individual licensing requirements, as does Indonesia. Indonesian authorities ensure that all real estate business activities are conducted according to the rules and regulations of the country. Despite this fact, many realtors also face certain challenges even if they adhere to the rules and regulations.

Several required licenses may take a considerable amount of time before approval to start a real estate business in Indonesia is received. Foreign investors also cannot hold the freehold property title in Indonesia. They need to involve a permanent resident of Indonesia or start a company of their own in order to set up a real estate agency.

The lack of transparency in Indonesia’s real estate sector often leads to nepotism or corruption. However, the enforcement of anti-corruption and transparency laws have been of assistance in this regard. Real estate startups have also been facing much competition from established real estate agencies in Indonesia as well as their more established foreign counterparts. It can also sometimes be difficult to receive appropriate credit for purchases of property according to the rules which currently exist in Indonesia. For this reason, the government must improve the existing asset-based lending system.