How do foreigners acquire property in Bali?

Under Indonesia's Basic Agrarian Law, full ownership (Hak Milik, freehold) belongs only to Indonesian citizens. Foreigners use other legal structures to acquire property in Bali.

The main routes

• Hak Pakai (right of use): granted under conditions to foreigners holding an Indonesian residence permit, for a home.
• Leasehold: the use of land or a villa under a long-term lease; the term and extension terms are written in the contract.
• PT PMA: an Indonesian company with foreign capital; it can hold Hak Guna Bangunan (right to build) in its own name.

Whom to work with

The transactions are made before a PPAT, the land deed official. Having the contracts and the title checked by a licensed Indonesian lawyer matters.

Take care

Nominee arrangements, where property is held in someone else's name, are against Indonesian investment law and carry serious risk.

With our Bali investment guide we can go through the whole process with you.