Can Foreigners Buy Property in Bali?

1. The Short Answer

Yes, but not in the same way as Indonesian citizens, and not without important legal conditions.

Indonesian law reserves the strongest form of land ownership (Hak Milik) exclusively for Indonesian citizens. However, several legal structures allow eligible foreign individuals to acquire meaningful property rights in Bali. Which structure is available depends on the type of property, the buyer's immigration status, and the specific conditions established by current Indonesian regulations.

2. What Foreigners Cannot Own Directly

Hak Milik, the closest Indonesian equivalent to freehold land ownership, may only be held by Indonesian citizens. This restriction is stated in Article 21 of the Basic Agrarian Law (UUPA No. 5/1960) and has not been removed or suspended.

This means a foreign individual cannot personally hold an SHM (Sertifikat Hak Milik) title over land in Indonesia, regardless of how long they have lived in Bali, their marital status, or their relationship with Indonesian citizens.

It also means that any arrangement that attempts to give a foreigner the effective benefit of Hak Milik through an Indonesian nominee carries significant legal risk. Such arrangements may be treated as void under Indonesian law and provide very limited legal protection to the foreign party.

3. Property Rights Available to Foreigners

Several legal routes allow foreign individuals to acquire property rights in Bali:

4. Hak Pakai (Right to Use)

Hak Pakai is a registered land right that allows eligible foreign individuals to hold a residential property right in Indonesia under their personal name. A title certificate (SHP) is issued and registered at BPN in the holder's name.

Under PP No. 18/2021 and Permen ATR/BPN No. 18/2021 (which replaced the earlier PP 103/2015 and Permen ATR/BPN 29/2016), the framework for foreign Hak Pakai includes:

• Eligibility: foreign individuals with a valid KITAS (Temporary Stay Permit) or KITAP (Permanent Stay Permit). Holders of certain residency-linked visas may also qualify; verify current requirements at the time of any transaction
• Duration: for Hak Pakai over state land or management rights land, the initial period is up to 30 years, with a possible extension of up to 20 years and a further renewal of up to 30 years — subject to applicable conditions and procedures. For Hak Pakai over privately-held Hak Milik land, the initial maximum is 30 years, with renewal by deed. Extensions and renewals are not automatic
• Minimum property value: residential property acquired by foreigners under Hak Pakai must meet minimum price thresholds set by ministerial regulation, which vary by property type and location. These thresholds are updated periodically — verify the current figures with a qualified professional
• Permitted use: Hak Pakai for foreigners under this framework is intended for residential use. Restrictions apply to the number of parcels or units that can be held
• Transfer on permit expiry: if the holder's stay permit lapses permanently, the property right must be transferred to an eligible party within one year, or it is extinguished by law

5. Residential Property Rules for Foreigners

PP No. 18/2021 establishes that foreign individuals who meet the applicable immigration document requirements may own housing/residential property in Indonesia, subject to conditions including:

• Minimum purchase price (varies by property type and location; set by ministerial regulation)
• Land area limits (may vary by property type and location)
• Restrictions on the number of parcels or dwelling units that can be held
• Intended use for residential occupation (not speculative or commercial land banking)

These restrictions mean that not every property in Bali is automatically available for foreign purchase under Hak Pakai: the property must meet the applicable requirements, and a professional verification of eligibility is essential.

6. Apartments and Strata Title

Under PP No. 18/2021, eligible foreign individuals may hold a form of strata title ownership (SHMSRS — Sertifikat Hak Milik atas Satuan Rumah Susun) over certain qualifying apartment units. This expanded the earlier framework, which had been limited to a right-to-use strata title.

Key points for foreign apartment buyers:

• Not all apartment buildings qualify: the building must be constructed on an appropriate underlying land title
• The ownership period follows the duration of the main land right of the building
• Minimum purchase price requirements apply
• The specific building and unit must be independently verified before purchase

7. Leasehold (Hak Sewa)

Leasehold is a contractual arrangement available to any foreign buyer, regardless of immigration status. The buyer acquires the right to occupy and use the property for an agreed period in exchange for an agreed payment. The Indonesian landowner retains the title certificate throughout.

Leasehold does not require a stay permit and typically involves lower transaction costs than Hak Pakai (the lessee generally does not pay BPHTB acquisition duty). However, it provides no BPN-registered right — its legal strength depends entirely on the written agreement.

For a detailed guide to leasehold, see: Freehold vs Leasehold in Bali →

8. When a Corporate Structure May Be Relevant

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is an Indonesian limited liability company with foreign investment participation. It is an Indonesian legal entity and can hold HGB (Hak Guna Bangunan, Right to Build) over land.

PT PMA structures are relevant where the intended activity is commercial, for example operating a villa rental business, rather than simply holding a personal residence. Operating a PT PMA involves ongoing compliance obligations, including investment reporting, annual tax filings, and the company's activities must match its registered business classification codes.

A PT PMA is not a route to personally holding freehold land, and should not be established without professional legal and accounting advice.

9. Important Conditions and Restrictions

Foreign buyers should be aware of several cross-cutting restrictions:

• Minimum property value: thresholds vary by property type and location; verify current ministerial regulations before proceeding
• Land area and number of units: restrictions apply under PP No. 18/2021 and applicable ministerial regulations
• Intended residential use: Hak Pakai for foreigners is for residential occupation; it is not a mechanism for commercial land acquisition
• Immigration document continuity: Hak Pakai requires a continuous valid stay permit; plan for what happens if your permit lapses
• Nominee arrangements: as noted above, these carry serious legal risk and are not a recommended alternative to legitimate structures
• Regulations change: Indonesian property and immigration regulations are subject to change; always verify the current framework at the time of your transaction

10. What You Should Verify Before Buying

Before committing to any property transaction, confirm with a qualified Indonesian legal professional:

• Which legal structure is appropriate for your situation and immigration status
• Whether the specific property meets all applicable eligibility requirements (title type, minimum value, land area, intended use)
• The current ministerial regulations on minimum price thresholds for the property type and location
• Whether the property is correctly zoned for residential use
• All required due diligence checks on the property and seller
• The full transaction costs, including applicable taxes and fees

For the complete buying process, see: The Complete Property Buying Process in Bali →

11. Final Takeaway

Foreigners can acquire meaningful property rights in Bali through Hak Pakai (for eligible individuals), contractual leasehold, eligible strata title, or via PT PMA for appropriate commercial activities. None of these structures is equivalent to directly holding Hak Milik (freehold land title), which is reserved for Indonesian citizens.

The question is not whether a foreigner "can" buy property in Bali. The more useful question is: which structure is appropriate for your specific circumstances, and are you eligible for it? That question requires a professional legal assessment, not a general guide.

Frequently Asked Questions