The short answer
No — not as freehold. Indonesia’s Basic Agrarian Law reserves freehold title (Hak Milik) for Indonesian citizens. Any transfer designed to give a foreigner freehold, directly or indirectly, is void by law.
What foreigners can do is hold other, legally recognised rights. Which one fits depends on what you want to do with the property: live in it, rent it out, or develop it.
The three legal routes
| Route | What you hold | Typical use | Main limits |
|---|---|---|---|
| Leasehold (Hak Sewa) | A contractual right to use the property for an agreed term | Private villa, land for a future build | Contract right, not a registered title; renewal depends on the contract |
| Hak Pakai (right of use) | A registered right on a residential property | Home for your own use | Minimum price; one plot per person or family, up to 2,000 m² |
| PT PMA (foreign-owned company) | Company holds HGB or Hak Pakai, or leases | Rental villas, developments, hospitality | Capital, licensing and reporting obligations; business-code restrictions in Bali |
1. Leasehold
A lease is an agreement with the landowner to use the land or villa for a fixed period, usually made by notarial deed. The law does not set a maximum term; the duration and any extension are what the contract says.
This makes the contract the asset. The points that decide its value are:
- the extension clause — with a price or a formula, not “to be negotiated”;
- the obligation of the owner’s heirs to honour the lease;
- the right to build, renovate and sub-lease;
- a verified title and zoning before you pay. See property due diligence in Bali.
2. Hak Pakai as an individual
Under Government Regulation 18 of 2021, a foreigner with a valid visa, passport or residence permit can hold a residential property under Hak Pakai. If the property was freehold or HGB, the title is converted to Hak Pakai on transfer.
In Bali the minimum purchase prices set by the Ministry of Agrarian Affairs in 2022 are IDR 5 billion for a landed house and IDR 2 billion for an apartment unit. The right is limited to one plot per person or family, of at most 2,000 m².
Hak Pakai is for residence. If you intend to rent the property commercially, you are running a business, and that needs licensing.
3. A PT PMA
A foreign-owned company can hold Hak Guna Bangunan (right to build) or Hak Pakai, or lease land, and can be licensed to run rental villas or develop property. Since October 2025 the minimum paid-up capital is IDR 2.5 billion, with total investment above IDR 10 billion per business line.
In Bali, since mid-2026, new foreign-company registrations are blocked for a list of business codes that includes several accommodation and property-rental activities. Check the exact code for your business model before you set up anything. See PT PMA and foreign investment structuring.
What does not work
Nominee ownership
Buying freehold in the name of an Indonesian partner, friend or employee — with side agreements, powers of attorney or loan documents — is the most common shortcut and the most dangerous. These arrangements are void under national law. Bali’s Regional Regulation 4 of 2026 now expressly prohibits nominee (“pinjam nama”) control of land, with sanctions up to closure and demolition.
We are asked regularly to “fix” nominee structures bought years ago. It can sometimes be done, but it is always more expensive than doing it correctly at the start.
Assuming the zoning follows the title
A clean certificate says nothing about whether you can build a villa there. Since 2025 Bali has prohibited converting protected agricultural land and restricted converting productive land for villas and hotels. See land and zoning checks.
How to choose
Ask three questions in this order:
- What will you do with the property? Live, rent, develop or resell.
- For how long? Your horizon decides whether a lease term is enough.
- Who else is involved? Partners, family, financing — they shape the structure.
Only then choose the property. In our experience, most problems we are asked to solve started with the opposite order.
Where ICM fits
We help foreign investors choose the structure, verify the property and negotiate the terms before any money is committed — and we stay involved if the investment includes construction or management. Start with a preliminary investment assessment.
This article is general information about Indonesian and Bali regulations as of the review date above. It is not legal advice; your notary or lawyer should confirm the position for your specific case.