How Foreigners Can Legally Buy Property in Bali and Indonesia
Foreigners cannot own freehold land in Indonesia, and that single fact shapes every property purchase in Bali. What you can hold, entirely legally, is a Hak Pakai (right-to-use) title, a long leasehold, or property through an Indonesian foreign-investment company (PT PMA).
This guide sets out how each route works, the minimum price rules that apply to foreign buyers, the main taxes, and why so-called nominee arrangements have gone from grey area to explicitly banned in Bali.
Freehold is off the table, by law
Indonesia's Basic Agrarian Law (UUPA No. 5 of 1960) reserves Hak Milik, the strongest freehold title, for Indonesian citizens. No contract, side letter or power of attorney changes that.
The modern framework for what foreigners can hold is Government Regulation No. 18 of 2021 (PP 18/2021), issued under the Job Creation Law. It governs land rights, condominium units and land registration, and it is the controlling regulation for foreign ownership today.
Hak Pakai: the right-to-use title
Foreigners with a residence permit can hold a Hak Pakai title over a house or apartment in their own name. Under PP 18/2021 it can be granted for up to 30 years, extended by 20 and renewed for a further 30, so up to 80 years in total.
Ministerial decrees also set minimum purchase prices for foreign-held property, which vary by province. These thresholds change by decree, so treat any figure as a snapshot.
- In Bali the minimum for a landed house is around IDR 5 billion (roughly GBP 240,000 at current rates); for an apartment it is around IDR 2 billion
- In Jakarta the apartment minimum is higher, at around IDR 3 billion
- Confirm the current thresholds with a notary (PPAT) before you commit, as they are revised by ministerial decree
Leasehold: how most foreigners actually buy in Bali
Leasehold (hak sewa) is a private contract with the landowner, commonly for 25 to 30 years with extension options, and it requires no residence permit. It dominates the Bali villa market for exactly that reason.
You are buying the remaining term, not the land, so the price should reflect the years left, and everything depends on the quality of the contract and the underlying title.
- Have a notary verify the freehold owner's certificate and obtain spousal consent where required
- Make extension terms explicit, with a price formula rather than 'to be agreed'
- Use an independent notary and lawyer, not ones supplied by the seller
Nominee arrangements: now explicitly banned in Bali
Putting freehold in an Indonesian citizen's name 'for' a foreigner has always been legally void: courts treat it as an attempt to dodge the ownership ban, and the Indonesian nominee can be recognised as the real owner, leaving the foreign buyer with rights they cannot enforce.
In February 2026 Bali's provincial government went further. According to reporting by The Star, Regional Regulation No. 4 of 2026 explicitly bans nominee-style ownership arrangements, alongside limits on converting productive farmland. Market analysts quoted in the same report say the rules are accelerating a shift towards formal structures such as the PT PMA, Indonesia's foreign-investment company, which can hold property for genuine business use.
Costs and the buying process
Transaction taxes are significant and worth budgeting from the start. According to ILA Global Consulting's guide to Indonesian property taxation, the buyer pays BPHTB acquisition duty at 5% of the taxable value, the seller pays a final income tax of 2.5%, and VAT at 11% applies to new property bought from a registered developer (not to resales). Notary and due-diligence fees come on top.
Habio's Indonesia buyer guides and Bali area guides walk through the process step by step, and listings on Habio show the title type so you know what you are actually buying.
- BPHTB (buyer's acquisition duty): 5% of the taxable value
- Seller's final income tax (PPh): 2.5%
- VAT (PPN): 11% on new builds from registered developers
- Allow extra for notary, translation and due-diligence fees
Frequently asked questions
Can a foreigner own freehold property in Indonesia?
No. Hak Milik (freehold) is reserved for Indonesian citizens under the 1960 Basic Agrarian Law. Foreigners can hold Hak Pakai (right-to-use) titles, long leaseholds, or property through a PT PMA foreign-investment company.
How long does a Hak Pakai title last?
Under Government Regulation 18/2021 it can be granted for up to 30 years, extended by 20 and renewed for a further 30, giving up to 80 years in total.
Are nominee arrangements legal in Bali?
No. They have long been void under Indonesian land law, and in February 2026 Bali's Regional Regulation No. 4/2026 explicitly banned nominee-style ownership. Courts can recognise the Indonesian nominee as the real owner.
Is there a minimum price for foreign buyers in Indonesia?
Yes. Ministerial decrees set provincial minimums for foreign-held property, around IDR 5 billion for a landed house in Bali and IDR 2 billion for an apartment there. The thresholds change by decree, so confirm current figures with a notary.
What taxes do you pay when buying property in Indonesia?
Buyers pay BPHTB acquisition duty at 5% of the taxable value, sellers pay 2.5% final income tax, and 11% VAT applies to new builds bought from registered developers. Notary fees are additional.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.