Can Foreigners Buy Property in Bali?

The Indonesian government has made it easier for foreign nationals to own property in Bali through the Hak Guna Bangunan (HGB) land title, also known as the Right to Build. This title can be obtained by Indonesian citizens or legal entities, such as a PT PMA..

Can Foreigners Buy Property in Bali?

Can Foreigners Buy Property in Bali? buying property in a foreign country can be an overwhelming experience, especially in Bali, Indonesia, where the legal structure differs significantly from those in many other countries. Many foreigners often wonder whether they can legally own property in Indonesia and how the process works.

In this blog post, we aim to provide a clear and straightforward explanation of the available options and guide you through how to buy property in Bali while ensuring a smooth and secure investment journey.

What is the HGB (Hak Guna Bangunan) property title?

The Indonesian government has made it easier for foreign nationals to own property in Bali through the Hak Guna Bangunan (HGB) land title, also known as the Right to Build. This title can be obtained by Indonesian citizens or legal entities, such as a PT PMA.

Therefore, in order for foreign nationals to own property, they must establish a PT PMA, which is a company, and the land will be transferred to their PT PMA through the HGB title.

Establishing a PT PMA

Owning property in Indonesia does not require you to partner with an Indonesian resident. What you need is just a PT PMA. Currently, there is a lot of misinformation about PT PMA and what is required to establish it. To set up a PT PMA, you need two people in the company. It can be you and a partner, or you and a family member.

In this PT PMA example, you serve as the director and majority shareholder with a 95% ownership. The commissioner is your father, who holds a 5% share. Thus, the minimum requirement of two people (director and commissioner) is fulfilled.

Benefits of the HGB Certificate

The HGB certificate is valid for 30 years and can be extended. When its validity is nearing its end, you can simply apply for an extension. If you fail to renew the HGB certificate, the land ownership will revert to the original owner.

The main benefit of the HGB is that you effectively own the land. It is the strongest legal status available for foreigners in Indonesia. In the event of a dispute, your rights are well-protected under the applicable property laws.

Unlike leasehold titles, which tend to lose value as they near the end of their term, HGB ownership allows the property to maintain its market value throughout the ownership period. This stability offers stronger long-term ROI potential.

Interestingly, HGB options are still available in several developing areas in Bali, where land prices have not yet surged, and many off-plan projects offer promising investment opportunities with significant growth potential. An example is off-plan villa projects in Tabanan, which offer a unique chance for investors to tap into Bali's emerging markets.

*for a complete overview of the different types of land certificates, building permits, and ownership titles in bali, read our comprehensive guide to property permits and land titles in bali

How to Establish a PT PMA 

Now you might be wondering how to establish a PT PMA. The process is actually quite simple. All you need to do is contact a trusted service provider who specializes in this area, and they will guide you through each step of the process. Here’s a general overview:

Step 1: Fill out the PT PMA application form
Step 2: Make a payment of IDR 30 million, approximately $1500 (depending on the exchange rate)
Step 3: Wait around 3 weeks for your PT PMA to be officially registered

Once your PT PMA is established, you’ll be able to open a business bank account and begin property transactions. If everything goes smoothly, you could own property in less than a month. For more detailed assistance, feel free to contact us to discuss your plans and get expert guidance on setting up your PT PMA in Bali.

Choosing the Right Investment Partner

Choosing a PT PMA partner is like choosing a colleague. You must be extra cautious. Based on the Wira Waspada Operation held by the Directorate General of Immigration in March 2025 in Batam, a surge of fake companies established by foreigners was found, who were not actually fulfilling real investment commitments. The PPATK also noted that the PT PMA scheme is often misused for money laundering and fraud, such as through nominees or virtual offices without verifying the beneficial owners. As a result, many investors have been deceived. Therefore, only work with trusted professionals who have integrity and expertise in PT PMA regulations, such as Bright Solution, which has been helping clients with company establishment and investments in Bali, Indonesia, since 2019.

Conclusion

Can Foreigners Buy Property in Bali? it is one of the most frequently asked questions by international investors exploring opportunities in Indonesia’s most iconic island. Understanding property ownership in Bali requires more than just reading various sources. Much of the information available can be confusing, especially since regulations in Indonesia continue to change in line with the government’s efforts to encourage growth while protecting the island's nature and culture. For foreigners looking to invest, it is important to take a careful approach, stay updated with the latest legal framework, and choose the right ownership structure. This will help ensure that your property investment in Bali remains secure and long term.