Security Deposits in Indonesia: Limits & Return Timelines

Within the Indonesian legal system, a security deposit (Uang Jaminan) is extremely common across the residential rental industry, from boarding houses (kos-kosan) to luxury apartments. There are no specific statutory limits; the procedure relies entirely on the contractual agreement between the landlord and the tenant.

Legal Disclaimer: This guide provides general legal information for educational purposes and does not constitute legal advice. Lease laws change. Always consult with a licensed legal advisor in Indonesia for your specific situation. Last verified: March 2026.

Are Security Deposits Required?

Formal law does not mandate rental insurance or security deposits. However, in every market (especially Jakarta, Bali, Surabaya), this deposit is practically required to cover the risks of utility arrears and subsequent property damage.

Common Deposit Limits

Due to the freedom of contract, the limit depends on the duration and type of property:

• Short-Term Rentals (Kos, monthly flats): Usually equal to 1 month's rent.
• Yearly Rentals (Houses, Luxury Apartments): Typically ranges from the equivalent of 1 to a maximum of 2 months' rent, or a flat fee like IDR 5,000,000 to IDR 20,000,000.

Allowable Deductions

In standard lease agreements, if the lease term expires without issue, the entire remaining deposit will be refunded. Deductions are legally allowed for:

1. Failure to pay utility expenses (arrears in maintenance fees / IPL, electricity tokens / PLN, water bills / PDAM, or internet packages).
2. Repairs for damage to the property framework that exceed normal everyday use (non-fair wear and tear).
3. Cleaning fees, if the residence is left in an improper state of sanitation.

Return Timelines

In Indonesian law, there is no absolute statute determining that a deposit must be transferred within 14 or 30 days.

Therefore, this time limit must be fully detailed in a draft clause of the lease agreement (e.g., "The remaining deposit will be inspected and transferred no later than 14 calendar days after the final handover of keys").