The Indonesian government has introduced stricter property broker regulations through Government Regulation No. 28 of 2025. This move reclassifies property brokerage from a low-risk to a medium-high-risk business, signaling a major shift in how the industry is governed. The changes aim to protect consumers, increase professionalism, and support the development of a fair and transparent real estate sector.
New Property Broker Regulations in 2025
Under the new rules, all property brokerage companies must obtain a Business Identification Number (NIB) and a Standard Certificate. These requirements apply specifically to businesses classified under KBLI 68200, which covers real estate services based on a fee or contract.
Companies must now operate as legal entities domiciled in Indonesia and fulfill enhanced licensing conditions. The Ministry of Trade emphasized that these changes align with the revised business risk classification and are meant to strengthen compliance across the sector.
“Regulations not only protect brokers from legal sanctions but also increase market trust,” said Clement Francis, Chairman of the Indonesian Real Estate Broker Association (AREBI).
Read More: AREBI Calls For Individual Property Agents and Foreign Brokers to be Regulated
Stricter Requirements for Licensed Real Estate Brokers
To legally operate under the updated property broker regulations, businesses must meet several key conditions:
- Be registered as a legal entity within Indonesia
- Employ Indonesian citizens with proven experience in property brokerage, management, or investment
- Provide a valid competency certificate for each expert staff member
- Submit a declaration stating experts are not affiliated with similar businesses
- Present a professional resume or CV for each expert
- Sign written agreements with clients
- Use national payment systems and display valid business identification
- Clearly present the business license number at all locations and in public materials
These requirements mark a significant step toward raising the standard of real estate professionals in Indonesia. By formalizing qualifications and processes, the government aims to eliminate bad actors and increase consumer confidence.
High Violation Rate Among Property Brokerage Firms
Despite the new regulations, the Ministry of Trade revealed a high rate of non-compliance among property brokerage firms. From 2021 to 2024, inspectors reviewed 216 businesses. Only 56 companies (26%) met the regulatory requirements, while 160 (74%) violated them.
“Violations included 67 businesses without certified experts (42%), 49 that failed to submit annual reports (31%), and 44 that did not have an NIB under KBLI 68200 (27%),” said Mario Josko, Director of Trade Order at the Ministry of Trade.
Mario also explained that companies failing to meet licensing standards or found violating trade regulations could face a series of administrative sanctions. These range from written warnings and temporary business suspensions to government coercion, administrative fines, license freezes, and even full license revocation.
Impact of Illegal Brokers on Market and Consumers
The presence of unlicensed property brokers creates serious risks for consumers, communities, and the government. According to Ronald Jenri Silalahi, Director of Supervision of Circulating Goods and Services, illegal brokers can cause property prices to skyrocket and contribute to the loss of customary land.
For the government, these practices result in lost tax revenue and damage to spatial planning and the environment. Consumers face the highest risk, including fraud, financial losses, and failed investments.
“Protect Bali from illegal practices. Support healthy, fair, and lawful property growth. Use only certified and official brokers,” Ronald urged.
Supporting Fair Property Growth in Indonesia
As Indonesia tightens its property broker regulations, both businesses and consumers have roles to play. Companies must comply with new licensing standards to operate legally, while consumers must remain vigilant in verifying a broker’s credentials.
The government continues to monitor the industry closely, aiming to build a more transparent and trustworthy real estate sector nationwide. Ultimately, compliance supports not only the economy but also the protection of land, investment, and public trust in property transactions.
Read More: Property Investment in Indonesia Thrives Despite Economic Woes
Source: industri.kontan.co.id, bali.bisnis.com
Image: Canva
