Can Foreigners Own Property in Indonesia? (2026 Guide)
Foreigners cannot own freehold land in Indonesia. Freehold title (Hak Milik) is reserved for Indonesian citizens. But there are legal ways for foreigners to hold and use property: a long leasehold, a Hak Pakai (right of use) title if you hold a residence permit, or owning property through a foreign-owned company, a PT PMA. The one route to avoid completely is the nominee arrangement, because under Indonesian law it is void.
This guide explains each option in plain language and what to check before you sign.
Why foreigners can't hold freehold
Indonesia's land system dates back to the Basic Agrarian Law of 1960, which reserves Hak Milik, the strongest and permanent form of land ownership, for Indonesian citizens. A foreigner cannot hold it directly, and cannot hold it through someone else.
That does not mean foreigners are locked out. It means the legal form is different, and you need to understand which form you are actually buying.
Option 1: Leasehold
A leasehold is a long-term lease of land or a home for a fixed number of years, registered and signed before an Indonesian notary. You don't own the land, but you have a legal right to use it for the term of the lease.
What an 80-year leasehold means
At Eco Beach City on Sumba, buyers hold an 80-year leasehold, renewable, with documents signed before an Indonesian notary. In practice that means:
- You can live in the home, rent it out, or sell your remaining years to someone else
- The right lasts 80 years from the start of the lease, with renewal possible
- The value of a leasehold is tied to the years left on it, which is why comparing cost per year matters
Our free leasehold cost-per-year calculator helps you compare leaseholds of different lengths and prices. It was built with Bali in mind, but the maths works for any leasehold.
Strengths and limits
Leasehold is simple, it doesn't require a residence permit, and it is the most common route for foreigners. Its main limit is time: when the term ends, the right ends unless it is renewed. Read the renewal clause carefully.
Option 2: Hak Pakai (right of use)
Hak Pakai is a registered land title that foreigners who live in Indonesia can hold for a house or apartment. You need a residence permit, a KITAS or KITAP.
According to an analysis by the Indonesian law firm Makarim & Taira S., a house on Hak Pakai can be held for 30 years, extended by 20 years and then renewed for 30 years, and extensions depend on the foreigner still holding a stay permit.
There are also minimum prices. In Bali, the minimum is IDR 5 billion for a house and IDR 2 billion for an apartment (Kepmen ATR/BPN 1241/2022). Minimums vary by region.
Hak Pakai suits people who are moving to Indonesia full time. For someone who visits for part of the year, it is usually not practical.
Option 3: PT PMA (foreign-owned company)
A PT PMA is an Indonesian company with foreign shareholders. The company, not you personally, holds the property rights, usually under a title that companies can hold. You own shares in the company.
Under BKPM Regulation 5/2025, a PT PMA needs a planned investment of IDR 10 billion, with IDR 2.5 billion paid up. A PT PMA also has ongoing obligations: accounting, tax filings and reporting. It is a real business, not a shortcut, and it makes most sense when the property is part of a genuine business activity.
At Eco Beach City, some buyers hold PT PMA equity instead of a leasehold. Which one fits depends on your situation, and the notary documents reflect the structure you choose.
Why nominee arrangements are void
A nominee arrangement is when an Indonesian citizen holds freehold in their name "on behalf of" a foreigner, often backed by side agreements. It is still offered in some places, and it is a serious risk.
Indonesian law treats nominee arrangements as void (Article 33 of Law 25/2007 on Investment). In practice:
- The property is legally the nominee's, not yours
- Your side agreements may not be enforceable in court
- If the nominee dies, divorces, has debts or simply changes their mind, you may have no remedy
If anyone suggests a nominee structure, walk away.
What to check before you sign
Whatever the structure, the checks are similar. Our free tools walk you through them:
- Run the 4-question test to see which route can apply to you
- Look up unfamiliar terms in the Indonesia property glossary
- Go through the leasehold due diligence checklist point by point
The essentials:
- Who owns the land title? Ask for the certificate and check that the lessor is the registered owner.
- Is the land zoned for what you want? Residential or tourism use, depending on your plans.
- Are the building permits in place?
- How long is the lease, and how does renewal work? Get the renewal terms in writing.
- Can you transfer or sell? Check whether you can sell your remaining years and on what conditions.
- Who is the notary? Documents should be signed before an Indonesian notary, ideally with your own independent lawyer reviewing them.
For a fuller list, see the checklist before buying property on an Indonesian island.
How this works at Eco Beach City
Buyers of a Beach Cabin or villa hold an 80-year renewable leasehold or, for some buyers, PT PMA equity, and documents are signed before an Indonesian notary. Homes are fully transferable, and owners can live in them, rent them out or resell on the owners' marketplace. Rental income is never guaranteed.
The community membership is different: it is not property at all, so none of the structures above apply to it.
If you want to see costs alongside the legal side, read how much a beachfront home in Sumba costs.
FAQ
Can a foreigner buy land in Indonesia?
Not as freehold (Hak Milik). Foreigners can hold a leasehold, a Hak Pakai title if they have a residence permit, or property through a PT PMA company.
Is a nominee agreement legal?
No. Nominee arrangements are void under Article 33 of Law 25/2007 on Investment.
Do I need to live in Indonesia to buy?
Not for a leasehold. Hak Pakai requires a KITAS or KITAP residence permit.
What happens at the end of an 80-year leasehold?
The right ends unless it is renewed. Check the renewal clause in your lease before signing.
Is the Eco Beach City membership a property purchase?
No. The membership is not property. It gives you stays, retreats and events, but no ownership rights.
Next step
If the leasehold route makes sense for you, the Beach Cabin page shows how it works in practice, with a fixed price, furniture included and a two-minute application. You can also read the FAQ or request the price dossier first.