All Bali property guides — by Balibound Realty, a boutique real estate agency in Bali (sales and 30-day-plus rentals).
By Balibound Realty · Updated 2026-07-18
Short answer: yes, but not the way most people first assume. A foreigner cannot own freehold land in their own name in Indonesia. That title, called Hak Milik, is reserved for Indonesian citizens. What a foreigner can do, legally and securely, is hold property through one of three well-established routes: a leasehold, a Hak Pakai (right to use) title, or a PT PMA (a foreign-owned Indonesian company). Each is legitimate when it is set up properly. The one thing to steer well clear of is a nominee arrangement, where a local person holds freehold "on your behalf." That is not legal, and Indonesian courts do not enforce it.
Here is how each route actually works.
1. Leasehold (Hak Sewa): the most common choice.
You lease the property for a fixed term, typically 25 to 30 years, usually with the option to extend. For the length of the lease you have the right to live in it, rent it out, or renovate within what the agreement allows. It is the simplest and fastest route, which is why most foreign buyers in Bali use it, for both lifestyle homes and rental investments.
2. Hak Pakai (Right to Use): the closest thing to freehold for an individual.
Available to foreigners who hold the right residency, Hak Pakai can run up to 80 years in total (an initial period plus extensions and renewals). It sits in your own name rather than a company, which many long-term residents prefer.
3. PT PMA (a foreign-owned company): the route for a business or larger investment.
A PT PMA is a foreign-owned company registered in Indonesia. It cannot hold Hak Milik, but when the company acquires the land it can hold it under Hak Guna Bangunan (HGB), the Right to Build, for up to 80 years across the initial grant, extension and renewal. This is the usual structure when you are buying as an investment, running a rental business, or holding several properties. One nuance worth knowing: if the company only builds on land someone else keeps title to, the numbers work differently, which is exactly the kind of detail a notaris pins down before you commit.
You will hear about buying freehold through a local "nominee." Do not. Under Indonesia's 1960 Basic Agrarian Law a foreigner cannot indirectly hold freehold land, and courts have consistently ruled against foreign parties in nominee disputes. Bali went further in 2026: a provincial regulation now expressly prohibits nominee arrangements, with sanctions that reach the intermediaries who set them up. In the worst case the land is forfeited to the State and the money paid is not recoverable. It looks cheaper and simpler on day one, and it can cost you the whole asset later. A proper legal structure protects you; a workaround does not.
It depends on what you want the property to do. A lifestyle home you plan to keep for a decade or two often fits a leasehold. A longer personal hold can suit Hak Pakai. An investment you will rent out or a portfolio usually points to a PT PMA. There is no single right answer, only the right fit for your goal and timeline.
We are a boutique Bali agency handling both sales and rentals, and we walk foreign buyers through this every week. We help you match the structure to what you actually want, we introduce a licensed notaris for the binding legal work and due diligence, and we are straight with you about the trade-offs rather than pushing the easy sale. The legal opinion always comes from a qualified notaris, not from us, and that is exactly how it should be.
Have a property or an area in mind? Send us a message and we will talk you through the ownership route that fits.
Not as freehold in their own name. A foreigner holds property through leasehold, Hak Pakai, or a PT PMA company, all of which are legal and secure when set up correctly.
Yes, when the contract is properly drafted and the title and permits are checked by a notaris. Leasehold is the most common route foreign buyers use.
Leases are typically 25 to 30 years, usually with an option to extend. Hak Pakai and HGB (via a company) can reach up to 80 years in total.
Not always. A company (PT PMA) suits investment and rental businesses. For a personal home, a leasehold or Hak Pakai is often simpler. The right choice depends on your goal.
Avoid it. It is illegal, unenforceable in Indonesian courts, and since 2026 expressly prohibited under Bali's provincial regulation with criminal sanctions. It puts the whole asset at risk. Use a proper legal structure instead.
Read this guide on our site: https://baliboundrealty.com/guides/can-foreigners-buy-property-in-bali
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