Foreign Nationals Prohibited from Acting as Active Property Brokers, AREBI Bali Emphasizes Under New Regulation
KUTA, NusaBali.com – The Indonesian Real Estate Broker Association (AREBI) Bali reiterated that foreign nationals (WNA) are strictly prohibited from acting as active property brokers in Indonesia. The reminder was delivered during the socialization of Minister of Trade Regulation (Permendag) No. 33 of 2025, held at Swiss-Belhotel Rainforest Kuta on Thursday (13/11/2025).
Chairman of AREBI Bali, Michael Hikma Gunawan, stated that despite the regulations, cases of foreigners engaging directly in property brokerage activities are still occurring, especially in tourism-driven areas across Bali.
“We still see foreign nationals acting as active brokers, even though they are not allowed to conduct direct transactions. They may only work in managerial roles, not as field brokers handling transactions,” he stressed.
Regulation Clarifies Limits on Foreigners’ Roles
Permendag 33/2025 provides clearer boundaries regarding the roles foreign nationals may hold in the property brokerage industry. Foreigners are allowed to work in management-level functions, such as business development or strategic marketing, but are prohibited from performing core brokerage activities such as client acquisition, transaction handling, or negotiation.
“This aims to protect consumers and ensure that property transactions comply with Indonesian law,” Michael said.
The new regulation also classifies property brokerage as a Medium-High Risk business sector. As a result, both individual brokers and brokerage companies are subject to stricter requirements, including mandatory competency certification, affiliation with a licensed business entity, and the obligation for companies to obtain a Medium-High Risk Standard Certificate.
Michael emphasized that tighter supervision is essential, especially in Bali, where the property and tourism sectors attract high transactional activity and are vulnerable to risks such as misinformation, abuse of authority, illegal transactions, and cross-border money laundering.
“Property transactions carry significant risks. This regulation ensures that only competent and licensed professionals may operate,” he added.
AREBI Pushes for Industry Clean-Up
AREBI Bali estimates there are around 200 brokerage companies operating across the island, though only about 110 are officially registered with the association. Meanwhile, Bali is home to more than 3,000 property agents, many of whom are not yet certified.
Through this socialization effort, AREBI Bali hopes for stricter enforcement to improve service quality, consumer protection, and transaction security.
“The ultimate goal of this regulation is to build a professional and secure property market ecosystem, while preventing illegal practices, including the involvement of foreign nationals as active brokers,” Michael concluded.
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