The government’s push for stronger oversight has placed Indonesia’s Property Brokerage Rules at the forefront of real estate discussions. The Ministry of Trade introduced these changes through Permendag 33/2025, and AREBI Bali highlighted the impact during a recent socialization event in Kuta. Rising transactions in Bali’s tourism zones have increased risks, prompting authorities to enforce stricter requirements to protect consumers and create a safer market.
Indonesia Property Brokerage Rules Reclassified as Medium-High Risk
Permendag 33/2025 reclassifies property brokerage as a Medium-High Risk business. This new category demands tighter controls to address vulnerabilities growing within Indonesia’s real estate market. AREBI Bali Chairman Michael Hikma Gunawan noted the seriousness of the issue and warned that weak oversight could harm buyers and investors.
He explained the risks clearly: “The risks are significant. They range from the delivery of incorrect information that may harm consumers, the potential for fraud or abuse of power, to the risk of illegal transactions and cross-border money laundering.” His remarks underline why regulators now focus on stronger monitoring and professional standards.
Mandatory Certification Strengthens Industry Oversight
The regulation places competency at the center of compliance. Every property broker must now hold a competency certification, and agents must display their certification numbers on all marketing materials. These requirements aim to raise professionalism across Indonesia’s property sector.
Michael emphasized this obligation and stated, “Any broker who wants to operate must be certified and must work under a licensed business entity.” He also stressed that many agents still lack certification, even though the number of active brokers continues to grow. AREBI Bali estimates that more than 3,000 brokers operate in the region, yet only a portion meet the new competency standards.
New Licensing Standards for Brokerage Companies
The regulation also affects brokerage companies. Firms must now obtain a Medium-High Risk Standard Certificate, replacing the old system that relied only on a Business Identification Number. Without this certificate, companies face immediate limitations. They cannot open bank accounts, and they cannot run their operations legally.
Michael explained the consequence, “Without the Standard Certificate, a company cannot open a bank account and is not allowed to operate.” AREBI Bali estimates that around 200 brokerage companies exist in the province, but only about 110 have joined the association and follow structured compliance.
Indonesia Property Brokerage Rules Clarify Foreign Participation
The updated rules also define the role of foreign nationals in the property business. Regulators now prohibit foreign nationals from working as active brokers. Michael highlighted ongoing violations in the field.
He stated, “Some foreigners are still acting as active brokers, even though they are not allowed to directly engage in transactions. They may only hold managerial roles, not operate as field brokers.” This rule aims to ensure that only certified and legally permitted individuals handle property transactions in Indonesia’s markets.
Industry Push for Greater Compliance and Consumer Protection
AREBI Bali urges all brokers and companies to follow the new requirements without delay. The association argues that proper certification and structured licensing will strengthen service quality and reduce risks for property buyers.
These measures also support safer transactions in Bali, where high demand and rapid growth create more opportunities for malpractice. Through stronger compliance, the industry can move toward a more transparent and responsible real estate environment.
Strengthening a Safer and More Transparent Property Market
The new rules aim to protect consumers and stabilize the property sector as activity grows. By enforcing clearer qualifications and licensing standards, the government seeks to improve professionalism and build greater public trust. AREBI Bali supports these changes and continues to guide brokers and companies through the transition to a safer, more accountable property market in Indonesia.
Source: rri.co.id, radarbali.jawapos.com
Image: Getty Images
