Buying Property in Bali:
The Legal Path for Foreigners

The Basic Rule: Foreigners Cannot Hold Hak Milik

Indonesian law restricts freehold land title — Hak Milik — to Indonesian citizens only. Foreign nationals cannot hold Hak Milik title directly, regardless of how long they have lived in Indonesia or what visa they hold.

The PT PMA Route: The Most Common Legal Structure

The most widely used and legally sound method for foreigners to hold property in Bali is through a PT PMA. An Indonesian company can hold property under HGB (right to build) or Hak Pakai (right to use) title. As the shareholder and director of the PT PMA, you effectively control the property and can use it for residential or commercial purposes.

HGB Title — What You Need to Know

HGB title grants the right to build on and use land for an initial 30 years, extendable for 20 years and then renewable. When the HGB period approaches its end, renewal must be applied for — this is a manageable process but requires advance planning.

The Setup Process for Property

• Establish a PT PMA with an appropriate KBLI code for your intended activity
• Register with OSS and obtain your NIB
• Complete NPWP and Coretax registration
• Apply for Investor KITAS as the shareholder-director
• Proceed with the property purchase under the company name (HGB title)
• Set up monthly bookkeeping and tax compliance for the operating entity