Indonesia Security Deposit Laws: Jaminan Rules
Guide to security deposits in Indonesia for 2026.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
Within the Indonesian legal system, primarily governed by the Indonesian Civil Code (KUHPerdata), Government Regulation (PP) No. 44 of 1994, and Law No. 20 of 2011 on Flats (as amended by Law No. 6 of 2023), a security deposit (Uang Jaminan) is extremely common across the residential rental industry. There are no specific statutory limits; under the principle of Freedom of Contract (Article 1338 KUHPerdata), the procedure relies entirely on the contractual agreement between the landlord and the tenant.
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 3 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 and obligations are legally grounded in Government Regulation No. 44 of 1994:
- Failure to pay utility expenses (Article 13): The tenant is legally responsible for paying electricity, gas, water, telephone, and other utility costs during the occupancy period.
- Repairs for damage (Article 8): The tenant is obligated to maintain the property and return it in good condition. Deductions are permitted for damage that exceeds normal everyday use (non-fair wear and tear).
- Cleaning fees, if the residence is left in an improper state of sanitation.
Note that Article 9 of PP 44/1994 specifically prohibits the tenant from subleasing the property or changing its structure without written consent from the owner.
Return Timelines
In Indonesian law, there is no absolute statute determining that a deposit must be transferred within a specific number of days.
Under the principle of Freedom of Contract (Article 1338 KUHPerdata), 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").
Substantive Legal Guidance in Indonesia
Discuss the importance of a signed 'Berita Acara Serah Terima' (BAST) - the handover document that records the property condition. This is critical because the Indonesian legal system prioritizes the 'consensus' (musyawarah) between parties. Before taking legal action for breach of contract (Wanprestasi), a formal written warning (Somasi) is required under Article 1238 KUHPerdata. Failures to follow these steps can lead to your eviction being dismissed in the District Court (Pengadilan Negeri) or even result in criminal trespassing charges. Additionally, the role of stamp duty (Materai), governed by Law No. 10 of 2020, is paramount; a lease agreement must have a physical or electronic stamp of IDR 10,000 to be admissible as evidence in court. Owners must ensure these documents are kept in precise order as they are the first pieces of evidence requested in any litigation.
Compliance Strategy for Indonesia Property Managers
When managing properties in the Indonesian market, one must prioritize the 'Itikad Baik' (Good Faith) doctrine under Article 1338(3) KUHPerdata. This legal principle means that contracts are interpreted by the mutual intent and fairness between the parties. Landager's compliance tools are designed to simplify this tracking, providing time-stamped logs of communications and payment history that can be directly presented in the District Court (Pengadilan Negeri). Also, understanding the nuances between residential and commercial zoning (IMB/PBG) allows for better portfolio risk management, as each type carries different implications for long-term property stability and municipal compliance.
How Landager Helps
Landager tracks lease terms, automated somasi reminders, and Indonesian tax compliance - making it easy to stay compliant with Indonesia regulations.
Sources & Official References
Frequently Asked Questions
▶What are the security deposit rules and return deadlines in Indonesia?
Indonesia has rules governing how much landlords can charge as a security deposit, how deposits must be held or protected, and the timeline for returning deposits after a tenancy ends. Landlords must provide itemized statements of any deductions and comply with all statutory deadlines to avoid penalties.
▶What are the key landlord-tenant laws in Indonesia?
Residential tenancy law in Indonesia is primarily governed by the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata / KUHPerdata). Unlike some countries with stringent tenant protection laws, Indonesia leans heavily towards freedom of contract. This means the stipulations within the lease agreement (Perjanjian Sewa Menyewa) strictly govern the rights and obligations of both parties. This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the legal eviction process for landlords in Indonesia?
The eviction process in Indonesia requires landlords to follow formal legal procedures. Valid grounds typically include non-payment of rent, lease violations, or the landlord's personal use of the property. Landlords must provide proper written notice, allow any required cure periods, and may need to obtain a court or tribunal order. Self-help evictions are generally prohibited.
Read the complete guide▶What are the rent increase limits and caps in Indonesia?
Indonesia has specific rules governing when and how landlords can increase rent. These rules may include caps on the percentage of increase, minimum notice periods, and restrictions on frequency. Landlords must comply with all applicable regulations when raising rent on existing tenancies.
Read the complete guide▶What are the mandatory lease requirements in Indonesia?
Lease agreements in Indonesia must comply with applicable national and local laws. Required elements typically include the names of both parties, property description, rent amount and payment terms, deposit details, lease duration, and maintenance responsibility allocation. Written leases may be required for certain tenancy types or durations.
Read the complete guide▶What are the landlord maintenance and repair obligations in Indonesia?
Landlords in Indonesia are generally required to maintain rental properties in a habitable condition, keeping the structure, plumbing, electrical systems, and essential services in proper working order. The specific allocation of maintenance responsibilities between landlord and tenant should be clearly documented in the lease agreement.
Read the complete guide▶What are the late fee and penalty rules for rental properties in Indonesia?
Indonesia has specific rules regarding late fees and penalties for overdue rent. These may include mandatory grace periods, caps on late fee amounts, and restrictions on interest charges. Late fee provisions should be clearly stated in the lease agreement and must comply with local regulations to be enforceable.
Read the complete guide▶What property disclosures are landlords required to make in Indonesia?
Landlords in Indonesia must disclose relevant information about the property to prospective tenants before the lease is signed. Required disclosures typically include known material defects, environmental hazards, previous damage history, and any conditions that could affect the tenant's use and enjoyment of the property.
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