Frequently Asked Questions

Not freehold. Under the Basic Agrarian Law (UUPA No. 5/1960, Art. 21) only Indonesian citizens may hold Hak Milik, the Indonesian freehold title. A foreigner can still hold or control property legally through one of these structures:

• Leasehold (Hak Sewa). You lease land or a villa from an Indonesian owner for an agreed term, usually 25 to 30 years. This is the most common route for foreign buyers in Bali.
• Hak Pakai (Right to Use). A registered title that a foreign individual may hold for one residential house, subject to a minimum price (Rp 5 billion for a house in Bali). Details below.
• HGB (Right to Build) through a PT PMA. A foreign-owned Indonesian company can hold HGB title for a genuine business, such as a villa rental or development. It is an investment structure, not a way to own a private home.
• Apartment units (strata title). A foreigner may own an apartment unit built on Hak Pakai or HGB land, with a minimum price of Rp 2 billion in Bali.

What a foreigner may never do is hold Hak Milik, directly or through someone else. Any arrangement that does so is void by law (UUPA Art. 26(2)). See the question on nominees below.

These are the four rights you will meet in Bali. Only the last three are land titles registered at the land office (BPN); a lease is a contract over someone else's title.

The HGB and Hak Pakai terms come from PP 18/2021 (Art. 37 and Art. 52). An extension or renewal is applied for at BPN and is granted, not automatic, so build its cost and timing into your plans.

Document eligibility by ownership type. ✓ means the document is used or the route is open, ✗ means it is not.

Every route also needs a tax number (NPWP) for the Indonesian parties and, for a married Indonesian seller or lessor, the spouse's written consent.

Hak Pakai is the only registered title a foreign individual can hold for a home. The rules are in PP 18/2021 (Art. 69–73) and Ministerial Regulation ATR/BPN 18/2021 (Art. 185–188):

• One home. One landed house per person or family, on a plot of up to 2,000 m². More needs the Minister's approval.
• Residential use only. It is a home, not a rental business.
• Minimum price in Bali. Rp 5 billion for a house and Rp 2 billion for an apartment unit (Decree of the Minister of ATR/BPN No. 1241/SK-HK.02/IX/2022). We found no later amendment, but confirm the current figure with the notary.
• Conversion. When a foreigner buys a Hak Milik or HGB property, the title is converted to Hak Pakai (Permen ATR/BPN 18/2021 Art. 187(3)).
• Inheritance. The home can pass to heirs; a foreign heir also needs valid immigration documents.
• Losing eligibility. If the holder no longer qualifies, the property must be transferred within one year, or the right lapses (PP 18/2021 Art. 50).

A foreigner married to an Indonesian should know that the Indonesian spouse keeps full land rights, including Hak Milik, only with a notarised prenuptial or separation-of-property agreement (PP 18/2021 Art. 70).

Indonesian law sets no maximum lease term: the Civil Code (Art. 1548) only requires a fixed period. In Bali, terms of 25 to 30 years are standard, and some leases run longer.

• Extensions are contractual. Agree the extension period, the price or the formula for it, and the deadline for exercising it in the original lease. Without that clause the owner can refuse or set any price.
• Use a notarial deed. A lease signed before a notary is the standard and the strongest evidence. Have the notary check the owner's certificate at BPN first.
• The lease survives a sale. If the owner sells the land, your lease continues (Civil Code Art. 1576), unless the lease itself says otherwise. Make sure it does not.
• Check the right to sublet and to transfer. If you may want to rent the villa out or sell the remaining term, the lease must allow it.
• Plan for the end. State what happens to buildings you add when the lease ends, and whether you have the first right to buy or renew.

Be wary of offers of 70 or 80 years in a single lease; the length alone does not make the lease safer than a well-drafted 30-year lease with a fixed-price extension.

For a private home, foreigners use a lease or Hak Pakai. For a business, such as building villas to rent or sell, the legal vehicle is a PT PMA, an Indonesian limited company with foreign shareholders, which can hold HGB title.

1. Choose the business activity codes (KBLI) for what the company will actually do and confirm each is open to foreign investment under the Positive Investment List (Perpres 10/2021 as amended by Perpres 49/2021).
2. Plan the capital. Under BKPM Regulation 5/2025 (in force since October 2025) a PT PMA needs at least Rp 2.5 billion paid-up capital and a planned investment above Rp 10 billion per business activity and location; for property and accommodation businesses, land and buildings now count toward that Rp 10 billion.
3. Register the company through OSS (the government's licensing system, now under PP 28/2025) and obtain its business number (NIB) and the permits its risk level requires.
4. Acquire the land as HGB in the company's name, with zoning that allows the planned use.

Bali in 2026. According to reports since May 2026, the OSS system has been rejecting new PT PMA registrations at Bali addresses for low and medium-low risk activities, including real-estate activity (KBLI 68111), after the Governor's letter of 28 January 2026. Existing companies keep their licences but face audits. This restriction is reported by advisers rather than published as a regulation, so check its current status before you plan a new company.

No, and you should not use one. A nominee arrangement puts Hak Milik in an Indonesian's name while side agreements (a loan, a power of attorney, a lease to you) are meant to give you control. It is unlawful:

• UUPA Art. 26(2) makes any act that directly or indirectly transfers Hak Milik to a foreigner void by law. The land falls to the State and the money paid is not recoverable.
• The Investment Law (UU 25/2007, Art. 33) voids agreements in which shares are held on behalf of someone else.
• Bali has gone further: Perda Bali 4/2026 on controlling the conversion of productive land bans nominee land ownership, and authorities are auditing foreign-run villas and companies.

If the nominee dies, divorces, falls into debt or simply refuses to cooperate, you have no title to fall back on. The safer alternatives are a properly drafted lease, Hak Pakai for a home, or a PT PMA holding HGB for a business. Partnering with an Indonesian is legitimate only when that person genuinely owns their share.

• Leasing. No permit is needed to sign a lease; a passport is enough. To live in the property you need a visa or stay permit that allows your length of stay.
• Hak Pakai. PP 18/2021 (Art. 69 and its elucidation) requires immigration documents, defined as a visa, passport or stay permit. In practice many notaries and land offices ask for a KITAS or KITAP, so check with the notary before you commit.
• PT PMA. Shareholders do not need to live in Indonesia. A foreigner who will run the company from Bali needs a work-based or investor stay permit through the company.
• Second Home Visa. A 5 or 10-year stay for foreigners with proof of funds of Rp 2 billion in an Indonesian state bank, or proof of property ownership in Indonesia (Directorate General of Immigration circular IMI-0740.GR.01.01/2022).
• Golden Visa. Granted for investment, for example US$350,000 (5 years) or US$700,000 (10 years) in Indonesian government bonds, listed shares or funds; US$2.5 million or US$5 million through your own company; or buying an apartment worth at least US$1 million (10 years). A landed villa does not qualify on its own (Permenkumham 22/2023 as amended).

Immigration rules have changed often since the Ministry of Immigration and Corrections was created in 2024; confirm current amounts on imigrasi.go.id before applying.

• Nominee structures. Void by law, so the buyer can lose everything.
• Wrong zoning. Land zoned for agriculture or inside a protected rice-field area (LP2B or LSD) cannot legally host a villa, and Bali stopped permits for commercial buildings on productive land in 2025 (Governor's Instruction 5/2025, then Perda Bali 4/2026).
• Defective title. A certificate that is disputed, mortgaged (Hak Tanggungan), overlapping another plot, or held by someone other than the seller.
• Weak leases. No fixed extension price, no right to sublet or transfer, a lessor who is not the registered owner, or a sub-lease whose head lease ends first.
• Missing permits. A villa without a building approval (PBG) or certificate of fitness (SLF) can be fined, closed or even ordered demolished, and cannot be licensed for rentals.
• Off-plan delivery. Delays, changes to the plan, or a developer that cannot finish.
• No legal access. A plot reached only across a neighbour's land, with no registered right of way.
• Unlicensed rentals. Running a holiday rental without the right company and licences exposes you to fines and to losing the business.

Each of these risks is checkable before you pay. That is the purpose of the due-diligence steps in the next answer.

1. Certificate check at BPN. The notary (PPAT) runs an official check of the original certificate at the land office; the law requires it before a sale deed. Ask also for the land registration statement (SKPT), which shows disputes, blocks and mortgages.
2. Ownership and identity. The seller or lessor named on the certificate matches their KTP, family card (KK) and tax number. For a company, check its deed, its directors' authority and its shareholders' approval.
3. Spouse and heirs. Property acquired during a marriage needs the spouse's written consent (Marriage Law 1/1974 Art. 36). Inherited land needs all heirs to sign, with a certificate of inheritance.
4. Encumbrances. No Hak Tanggungan (mortgage, UU 4/1996), court seizure or block is recorded.
5. Zoning. The detailed spatial plan (RDTR) and Bali's provincial plan (Perda Bali 2/2023, RTRW 2023–2043) allow your intended use. Ask for the spatial-use approval (KKPR) and confirm the land is not protected farmland.
6. Boundaries and access. Measure the plot against the certificate map and confirm legal road access and utilities (water, power).
7. Taxes. The land and building tax (PBB) is paid up to date, with receipts.
8. Buildings. A PBG (or the old IMB) and an SLF exist and match what is built.
9. For a lease. The lessor is the registered owner, or a head lease allows sub-leasing and runs longer than yours; every earlier lease in the chain is checked.
10. For a business. The activity codes, licences and tax registrations of any company you buy into.

The Baliners works with licensed notaries and independent lawyers and shares their findings with you before you pay anything beyond a refundable deposit.

Checks protect you only if the payment order and the documents follow them. A typical safe sequence is:

1. Agree the price and terms in writing, with any deposit refundable if due diligence fails.
2. Complete due diligence: certificate check, SKPT, zoning, permits and the seller's documents.
3. Hold the balance with the notary or in an escrow account until the deed is signed, rather than paying the seller directly.
4. Sign the deed before the notary/PPAT: a sale deed (AJB) for a transfer of title, a Hak Pakai deed for a foreign buyer, or a notarial lease deed.
5. Pay the taxes due on the deal (BPHTB and the seller's income tax) and have them validated before registration.
6. Register the transfer at BPN and collect the certificate in the new holder's name. For a lease, keep the original deed and a copy of the owner's certificate.

Keep every original document, and do not accept a promise that a certificate, zoning change or permit will be sorted out after completion.

A notary (Notaris) is a state-appointed official who drafts and certifies legal deeds, such as leases, sale and purchase agreements (PPJB) and company deeds. A PPAT (Pejabat Pembuat Akta Tanah, land deed official) is the only official who can make the deeds that transfer or create land titles, such as the sale deed (AJB) or a Hak Pakai deed. Most land transactions in Bali are handled by someone who holds both appointments.

• Without a PPAT deed, BPN will not register a transfer of title.
• The notary/PPAT checks the certificate at BPN, verifies identities and consents, and calculates and validates the taxes.
• Their fees are capped by law: a PPAT may charge at most 1% of the transaction value (PP 24/2016 Art. 32), and notary fees are capped by the Notary Law (UU 30/2004 Art. 36).

A notary is neutral and serves both parties. For advice on your own position, such as negotiating lease terms, hire an independent lawyer as well.

It can be, if the developer meets the conditions Indonesian law sets for pre-sales (Government Regulation PP 12/2021, amending PP 14/2016):

• Before marketing, the developer must have certainty of zoning, the land title and the building approval (PBG), and a guarantee from a guarantor institution (Art. 22C).
• Before a binding sale agreement (PPJB), the developer must have a clear land title, the PBG, the roads and utilities, and at least 20% of the project built (Art. 22I).
• You get time to read it. At least 7 working days to review the PPJB, which is signed before a notary (Art. 22K).
• Payment limit. The developer may not collect more than 80% of the price before the PPJB conditions are met (Art. 22L).
• Refunds. If the sale is cancelled through the developer's fault, everything paid is returned. If through the buyer's fault, the developer may keep up to 10% of the price.

On top of the law, ask for staged payments tied to verified construction milestones, a fixed completion date with penalties, a clear specification, and proof that the land is in the developer's name or properly leased by it. Visit the site and check the developer's earlier projects.

As a rough guide, a buyer's taxes and fees on a title transfer come to about 6% to 7% of the price, before VAT on a new build and before legal fees. A lease has no BPHTB, but the 10% rental tax is a real cost. Agency fees, where they apply, are set out in a separate written agreement.

• Land and building tax (PBB-P2). Paid yearly to the regency on the official assessed value (NJOP). The law caps the rate at 0.5% and requires an allowance of at least Rp 10 million (UU 1/2022 Art. 40–41). Each regency sets its own rate: in Denpasar, for example, 0.1% up to Rp 1 billion of value and 0.2% above it (Perda Kota Denpasar 5/2023). Badung, Gianyar and the other regencies set theirs in their own regional regulations, so check the yearly tax notice (SPPT).
• Who pays on a lease. PBB is the landowner's tax, but leases often pass it to the tenant. Say so explicitly in the lease.
• Rental income. If you earn rent, income tax is due on it (see the next question).
• A company. A PT PMA files monthly and annual tax returns and pays corporate income tax on its profit.

Unpaid PBB stays with the property, so check that it is paid up to date before you buy or lease.

Yes, but short-term holiday rental is a licensed tourism business in Indonesia, and Bali is enforcing the rules closely.

• Who can operate it. A foreign individual cannot hold the licence personally. The business must be run by an Indonesian company with the right activity code, either your own PT PMA (subject to the 2026 restriction on new PT PMA registrations in Bali) or a licensed Indonesian operator you contract with. The small homestay licence (Pondok Wisata) is for Indonesian micro and small businesses.
• Licences. A business number (NIB) through OSS for the accommodation activity, the building approval (PBG) and certificate of fitness (SLF), zoning that allows tourism accommodation, and registration with the regency as a hotel-tax (PBJT) payer.
• Hotel tax (PBJT). Charged on guests' bills at up to 10% under UU 1/2022 (Art. 53 and 58), expressly including villas and private homes run as accommodation. Denpasar charges 10% (Perda Kota Denpasar 5/2023); each regency sets its own rate.
• Income tax. A long-term lease of the villa is taxed at a final 10% of the gross rent (PP 34/2017). Holiday rental income is business income of the operating company, taxed on profit. For a landlord who is not tax-resident in Indonesia, practice differs on whether the 10% final tax or the 20% non-resident withholding tax applies; get tax advice.
• Enforcement. Since 2025 the provincial government has been checking villas offered on booking platforms against licence records and requiring unlicensed operators to obtain permits; foreign-owned companies have been audited and sanctioned.

Foreign tourists pay Bali's own tourist levy of Rp 150,000 per visit (Perda Bali 6/2023, as amended); it is collected from the visitor, not the villa owner.

• PBG (building approval) replaced the old IMB under PP 16/2021. An existing IMB stays valid. Apply before building, through the government's SIMBG system.
• SLF (certificate of fitness) is issued after construction and is needed to use the building legally and to license it for rentals.
• KKPR (spatial-use approval) confirms the land may be used as planned under the RDTR and the provincial plan (Perda Bali 2/2023). It replaced the location permit under PP 21/2021.
• Productive land. Since September 2025 Bali has stopped permits for tourism and commercial buildings on productive farmland (Governor's Instruction 5/2025), and Perda Bali 4/2026 now controls the conversion of productive land. Protected food land (LP2B) cannot be converted at all.
• Balinese architecture and heights. Provincial rules limit building height (generally 15 m) and require Balinese architectural elements; your architect should confirm them for the plot.

Announcements about moratoria on hotels and villas have changed several times since 2024, and the rules are applied regency by regency. Before you buy land to build on, have the notary or a licensed consultant confirm the zoning and that a PBG can actually be issued for your design.