Can Foreigners Buy Property in Bali?
Buy Villas in Bali Editorial Team · Last reviewed
Foreign nationals cannot hold freehold title (Hak Milik) to land in Indonesia; this is reserved for Indonesian citizens under the Basic Agrarian Law (UUPA No. 5/1960). This single fact drives almost every decision a foreign buyer makes in Bali, and it is worth understanding clearly before looking at specific properties.
That does not mean foreigners cannot legally acquire long-term rights over Bali property. Indonesian law provides several routes — Hak Pakai, leasehold contracts, and corporate ownership via a PT PMA — each with different eligibility requirements, durations and intended uses. This guide summarises the legitimate options and flags the arrangement that is commonly marketed but carries serious legal risk: the nominee structure.
What foreigners cannot do
A foreign individual, in their personal name, cannot be registered as the holder of Hak Milik. Any arrangement that claims to give a foreigner freehold 'in substance' while a local individual holds the certificate is a nominee arrangement, not a form of ownership recognised as such under Indonesian law, and carries significant legal risk — including exposure if the nominee dies, becomes indebted, divorces, or simply disputes the arrangement.
Hak Pakai — Right to Use
Hak Pakai allows eligible foreign individuals to hold a registrable right to use land, typically for residential purposes, for a fixed initial term with renewal possibilities as set out under Peraturan Pemerintah No. 18/2021. Eligibility generally depends on holding a qualifying Indonesian stay or residence permit (for example certain KITAS/KITAP categories); the specific conditions and documentation should be confirmed with a notary and with Direktorat Jenderal Imigrasi.
Leasehold (Hak Sewa)
Leasehold is a private contractual arrangement between the foreign tenant and the Indonesian landowner, rather than a registered land right in the same sense as Hak Pakai. Terms — duration, renewal options, transferability, and what happens to any building at the end of the term — are set entirely by the contract, so the drafting quality and the lawyer reviewing it matter enormously.
PT PMA and Hak Guna Bangunan
A foreign investor can establish a PT PMA, an Indonesian limited liability company with foreign shareholding, through the OSS system (oss.go.id). A properly licensed PT PMA can hold land under Hak Guna Bangunan (Right to Build) and operate a business on it, such as villa rental — this is a corporate structure for business activity, not a personal ownership shortcut, and comes with its own compliance obligations (company reporting, licensing, taxation).
Comparing the legitimate structures
| Structure | Available to | Typical use | Nature of right |
|---|---|---|---|
| Hak Pakai | Eligible foreign individuals (residence permit required) | Personal residence | Registered right to use, fixed term with renewal |
| Hak Sewa (leasehold) | Any foreign individual | Residence or holiday use | Private contract, not a registered right against third parties |
| PT PMA + HGB | Licensed foreign-owned company | Commercial/rental operation | Corporate right to build, tied to company licensing |
Why the nominee route is not a safe alternative
- The nominee, not the foreigner, is the party recognised in the land certificate, so the foreigner has no direct enforceable title.
- Nominee agreements attempting to protect the foreigner via side contracts have been challenged in Indonesian courts, and outcomes are not guaranteed.
- Risk transfers to the foreigner if the nominee has personal debts, dies, divorces, or simply refuses to cooperate.
- A licensed notary can explain lawful alternatives (Hak Pakai, leasehold, PT PMA) suited to your specific goal.
Immigration status matters
Several of these structures, particularly Hak Pakai, are linked to the buyer's immigration status. It is worth coordinating your property plans with your visa/KITAS strategy from the outset, and confirming current requirements directly with Direktorat Jenderal Imigrasi (imigrasi.go.id) since rules and permit categories are periodically updated.