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Can foreigners own property in Indonesia? Take the 4-question test
Short answer
No, not as freehold: Hak Milik is only for Indonesian citizens. A foreigner can legally hold property in three ways: a leasehold (Hak Sewa, open to anyone, no minimum price), a right of use (Hak Pakai, with a residence permit and, in Bali, a house of at least IDR 5 billion) or through a foreign-owned company (PT PMA, with IDR 10 billion of planned investment). Putting land in an Indonesian nominee's name is void.
Foreigners cannot own freehold land in Indonesia (Hak Milik is for Indonesian citizens only). There are three legal ways to hold property instead. Answer 4 questions to see which one fits you.
For a holiday home without a residence permit, a lease registered before a notary is the usual way. It needs no company and has no minimum price.
The three legal ways for a foreigner to hold property
1. Leasehold (Hak Sewa)
A long lease, usually 20–30 years, signed with the Indonesian landowner before a licensed notary. Anyone can hold one, with no minimum price and no company. At the end of the term the property goes back to the landowner unless you extend, so agree the extension terms in the contract.
2. Right of use (Hak Pakai)
A title registered at the land office (BPN) that a foreigner with a residence permit can hold in their own name for a house or an apartment: 30 years, extendable by 20 and renewable by 30, up to 80 years. There is a minimum price per province; in Bali it is IDR 5 billion for a landed house and IDR 2 billion for an apartment. Usually one house per person or family.
3. Foreign-owned company (PT PMA)
An Indonesian company with foreign shareholders can hold building rights (Hak Guna Bangunan) and run a rental business legally. It needs a planned investment of at least IDR 10 billion, IDR 2.5 billion of it paid up under BKPM Regulation 5 of 2025, plus yearly reporting and tax filings. It makes sense for a business, rarely for one holiday home.
Never: a nominee
Putting freehold land in the name of an Indonesian friend or partner while you pay is not a legal shortcut. Agreements that hide the real owner are void under Article 33 of Law 25 of 2007 on investment, and you can lose the property.
The options side by side
| Structure | Who can hold it | Term | Minimum | Best for |
|---|---|---|---|---|
| Leasehold (Hak Sewa) | Anyone, no residence permit | Usually 20–30 years, extendable by agreement | None | Holiday homes, most budgets |
| Right of use (Hak Pakai) | Foreigners with a residence permit (KITAS/KITAP) | 30 + 20 + 30 years (up to 80) | Bali: IDR 5 billion house, IDR 2 billion apartment | Living in Indonesia, higher budgets |
| PT PMA + HGB | A foreign-owned Indonesian company | HGB 30 + 20 + 30 years | IDR 10 billion planned investment, IDR 2.5 billion paid up | Running rentals as a business |
| Freehold (Hak Milik) | Indonesian citizens only | Permanent | – | Not available to foreigners |
| Nominee | – | – | – | Never: void under Law 25/2007 |
Questions people ask
Can foreigners own property in Indonesia?
Not as freehold: Hak Milik is reserved for Indonesian citizens. Foreigners can hold a leasehold (Hak Sewa), a right of use (Hak Pakai) if they have a residence permit, or property through a foreign-owned company (PT PMA).
What is the cheapest legal way for a foreigner to own property in Bali?
A leasehold. It has no minimum price, needs no residence permit and no company. The trade-off is that it ends after the agreed term unless you extend it.
What is the minimum price for a foreigner to buy a house in Bali under Hak Pakai?
IDR 5 billion for a landed house and IDR 2 billion for an apartment, according to the 2022 decree of the Ministry of Agrarian Affairs (Kepmen ATR/BPN 1241/2022). Other provinces have lower thresholds.
How much do you need to set up a PT PMA to buy property?
A planned investment of more than IDR 10 billion per business line, with IDR 2.5 billion paid up under BKPM Regulation 5 of 2025, plus the costs of running the company every year.
Is using an Indonesian nominee legal?
No. Agreements where an Indonesian holds land on behalf of a foreigner are void under Article 33 of Law 25 of 2007, and the foreigner can lose both the land and the money.
More free tools
Sources
- Cekindo · Buy a house in Indonesia: guide for foreigners (Hak Pakai, PP 18/2021, Kepmen ATR/BPN 1241/2022)
- LMI Consultancy · Indonesia lowers paid-up capital for foreign companies to IDR 2.5 billion (BKPM Reg. 5/2025)
- Emerhub · Leasehold property in Bali
- InCorp · Buying property in Bali as a foreigner
Last reviewed 11 October 2026. General information, not legal, tax or financial advice. Rules change; check them with an independent Indonesian lawyer or notary before you sign anything.