“Can you really buy in Bali if you are not Indonesian?” It is the first question almost every investor asks me. The answer is yes, but not the way you would in Europe. Understanding the three possible structures is the basis of any decision.
Quick answer
- A foreigner cannot hold freehold title to land (Hak Milik) in Indonesia.
- Three legal routes: leasehold, Hak Pakai (subject to conditions) and a PT PMA company.
- Nominee arrangements are illegal and do not protect you.
- Most villas offered to non-resident investors are leasehold.
A villa project in Bali? Ask Mago your question on WhatsApp, in English.
Ask my question on WhatsApp1. The starting rule: no freehold ownership of land
Indonesian agrarian law reserves freehold ownership of land for Indonesian citizens. A foreigner therefore cannot buy land “in their own name” in the sense understood in Belgium or France.
For years, some people got around the rule by having an Indonesian buy on their behalf, with a private “nominee” contract. This arrangement is explicitly illegal. In a dispute, the foreigner has no enforceable right over the property. If you are offered this scheme, it is a warning sign.
2. Leasehold (Hak Sewa)
This is the most common option for non-resident investors. You sign a long-term lease before a notary on a plot, a villa or a unit in a development. During that term the property is yours to use: you can live in it, rent it out (in line with the licences) or assign the lease.
Usual terms: 20 to 30 years, sometimes with an extension option negotiated from the outset.
Advantages: no residency requirement, lower entry ticket, relatively simple procedure.
Points to watch: at expiry, the property reverts to the landowner unless the lease is extended. Resale value depends heavily on the remaining term. The extension terms (price, duration, notice) must be written down at signing. See also our checklist of the 10 clauses of a leasehold.
3. Hak Pakai (right of use)
Hak Pakai is a right registered with the Indonesian land office (BPN) in a foreigner's name. It can last up to 80 years in total, granted in three stages (30 years, then 20, then 30), each subject to conditions.
PP 18/2021, article 69 and its explanatory note, refers to immigration documents: a visa, a passport or a residence permit. The limits on price, surface area and use of the property must also be checked. It would therefore be too restrictive to present a KITAS/KITAP as a universal requirement. Have your eligibility and the formalities for the specific property confirmed by the PPAT and an independent lawyer.
4. The PT PMA and the right to build (HGB)
A PT PMA is a company under Indonesian law owned by foreigners. It can hold a right to build (Hak Guna Bangunan, HGB) for up to 80 years, or a leasehold. It is the structure that allows you to operate a villa yourself as a tourist rental, with the licences in its name.
It involves minimum paid-up capital and a minimum investment plan (thresholds revised in 2025, to be confirmed at the time of the project), bookkeeping and monthly tax returns, as well as set-up and management costs. For a single villa run by an operator, it is not always necessary: the licence can be held by the lessor or by the development's management company.
5. Quick comparison
| Criterion | Leasehold | Hak Pakai | PT PMA |
|---|---|---|---|
| Residency required | No | Yes | No |
| Tourist rental | Depending on licence | No | Yes, with a licence |
| Complexity | Low | Medium | High |
| Structure cost | Low | Medium | High |
My 5 systematic checks
- The land title: certificate verified with the BPN, owner identified.
- Zoning: does the plot allow tourist use?
- Permits: building permit (PBG) and certificate of conformity (SLF), or a realistic timeline for obtaining them.
- The rental licence: who holds it and in what form?
- The contract: reviewed by an independent lawyer, not only by the seller's.
Frequently asked questions
Can a foreigner own land in Bali?
No, not as freehold. They can hold a leasehold, a Hak Pakai if they meet the applicable conditions, or go through a PT PMA that holds a right to build.
Is leasehold safe?
It can be, if the lessor's title is verified, the lease is notarised and the extension, assignment and inheritance clauses are clearly drafted.
Do you need to set up a company to buy a villa?
Not necessarily. It is mainly useful if you want to run the rental yourself. In a managed development, the operator often holds the licence.
Sources
Official sources checked on 4 October 2026
Mago Kitaev, licensed real estate broker in Dubai (RERA, BRN 82528), based in Business Bay. A former project manager in banking and IT, he has been advising French-speaking investors since 2024. See his background
This article is for information purposes and was updated on 28 September 2026. It does not constitute legal, tax or financial advice. Indonesian regulations change frequently: have every project checked by an independent PPAT notary and an independent lawyer.