# Can Foreigners Own Property in Indonesia? 2026 Test · Free

> Leasehold, Hak Pakai or PT PMA? Answer 4 questions and see which legal way to own property in Indonesia or Bali fits you as a foreigner. Free, no signup.

URL: https://ecobeachcity.com/tools/can-foreigners-own-property-in-indonesia
Last reviewed: 2026-10-11
Publisher: Eco Beach City (https://ecobeachcity.com)

## 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.

## Ways a foreigner can hold property in Indonesia

| 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.

## Sources

- [Cekindo · Buy a house in Indonesia: guide for foreigners (Hak Pakai, PP 18/2021, Kepmen ATR/BPN 1241/2022)](https://www.cekindo.com/blog/buy-a-house-in-indonesia)
- [LMI Consultancy · Indonesia lowers paid-up capital for foreign companies to IDR 2.5 billion (BKPM Reg. 5/2025)](https://www.lmiconsultancy.com/indonesia-lowers-paid-up-capital-requirements-for-foreign-companies-to-idr-2-5-billion/)
- [Emerhub · Leasehold property in Bali](https://emerhub.com/bali/leasing-property/)
- [InCorp · Buying property in Bali as a foreigner](https://indonesia.incorp.asia/blogs/buying-property-in-bali-as-a-foreigner)

General information, not legal, tax or financial advice. Eco Beach City sells land and homes in Sumba, Indonesia, from €6,500 (land).