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How foreigners can hold property in Indonesia in 2026

Leasehold, Hak Pakai and a PT PMA with HGB: a plain guide to how foreigners hold property in Indonesia in 2026, what changed and why nominee deals are risky.

Foreigners cannot own freehold land in Indonesia, but there are legal ways to hold a home here. In 2025 and 2026 several of the rules around those routes changed, and Bali has started enforcing the line between legal structures and shortcuts much more firmly. Here is a plain overview of the options, what is new, and why the “borrowed name” route is a bad idea.

The routes at a glance

Freehold title (Hak Milik) is reserved for Indonesian citizens. The Minister of Agrarian Affairs restated this in a parliamentary hearing in July 2025. The lawful routes for foreigners are:

Route Who holds it Term Typical use
Leasehold (Hak Sewa) You (or your company) lease from the Indonesian titleholder Set by the lease agreement The most common route for Bali villas
Hak Pakai (right of use) A foreign individual with valid immigration documents 30 years, extendable by 20, renewable by 30 A home to live in
HGB through a PT PMA An Indonesian company with foreign shareholders 30 years, extendable by 20, renewable by 30 (on state land) Property used in a real business

Each route has different strengths. None of them is “better” in general. The right one depends on how you plan to use the property, how long you will stay, and your own tax and family situation.

Leasehold (Hak Sewa)

A leasehold is a contract between you and the owner of the land. You pay for the right to use the land and the building on it for an agreed period. In Bali, villa leases are usually drawn up as a notarial deed.

The strength of leasehold is simplicity. You do not need a company or a residence permit, and the terms are written in one document. The weakness is that everything depends on that document. Points a notary will usually check:

  • Who holds the land certificate, and whether all the people who must consent (for example, heirs or a spouse) have signed.
  • The exact start and end dates, and how any extension works: fixed in advance, or open to negotiation later.
  • Whether you can sell, transfer or sublet the lease, and whether it passes to your heirs.
  • What happens to the building at the end of the term.
  • Whether the permitted use (living in it, or renting it to guests) matches the zoning and the building permits.

Hak Pakai (right of use)

Since 2021, a foreigner can hold a house or apartment under a right of use, Hak Pakai. Government Regulation 18/2021 refers to foreigners holding valid immigration documents, which its elucidation lists as a visa, passport or stay permit. For houses, the term is 30 years, extendable by 20 and renewable by another 30.

There are limits. A foreigner may hold one plot per person or family, of up to 2,000 m², unless the minister approves otherwise. The home must meet a minimum value set by ministerial decree (Kepmen ATR/BPN 1241/2022), and that threshold varies by province. As of March 2025, Bali’s land office recorded 463 plots held by foreigners under Hak Pakai.

Hak Pakai is for living in. Before you plan to rent such a home out, check with your adviser how that fits your title and the licensing rules for accommodation.

A PT PMA with HGB: what changed

A PT PMA is an Indonesian limited company with foreign shareholders. It can hold land under Hak Guna Bangunan (HGB, right to build), but it must run a real business.

Two recent changes matter:

  • Lower paid-up capital. Investment Ministry/BKPM Regulation 5/2025, issued in October 2025, cut the minimum paid-up capital for a PT PMA from Rp 10 billion to Rp 2.5 billion. The separate requirement for a planned investment of more than Rp 10 billion per business line and location was not lowered.
  • Bali closed some doors. Since the third week of May 2026, Bali has blocked new foreign-investment registrations in 18 low and medium-low risk categories in the national licensing system (OSS). They include owned or leased real estate, star-rated and budget hotels, and other accommodation. The governor said some companies were using these categories to avoid real investment.

Enforcement has followed. In early October 2026, Ngurah Rai Immigration deported several holders of investor stay permits, including one reported to have promoted a villa outside the scope of his permit. A PT PMA can be the right structure for a genuine business. It is not a shortcut to owning a holiday home.

Why nominee arrangements are risky

A nominee arrangement means an Indonesian citizen holds land or shares in their name on behalf of a foreigner, often backed by side agreements, loans or powers of attorney. The law is not on the foreigner’s side:

  • The Basic Agrarian Law of 1960 says any transfer meant to pass freehold to a foreigner, directly or indirectly, is void, and the land falls to the state.
  • The 2007 Investment Law voids agreements in which shares are held for someone else.
  • Bali’s Provincial Regulation 4/2026, signed in February 2026, specifically prohibits nominee land ownership. Media reports say it carries criminal sanctions, including for those who facilitate such deals.

In practice, the person on the certificate is the legal owner. Their debts, divorce or death can all affect “your” property, and side agreements may not protect you.

Before you sign. One more 2026 change helps buyers. Under Trade Minister Regulation 33/2025, property brokers must hold a competency certificate, and the grace period ended in October 2026. Ask your agent for theirs.

Above all, choose your own independent notary (PPAT) or lawyer, not one introduced by the seller, and a tax adviser for your home country as well as Indonesia. This article explains the general picture. It is not legal or tax advice.

What this means for Valora Sanur

Valora Sanur is offered as leasehold: 26 years, with an extension of up to 30 years. The terms sit in the lease itself, so your own notary can read them line by line before you commit.

Each villa comes fully furnished, with VAT included and the PBG (building approval) and SLF (certificate of function) in the price.

We encourage every buyer to have the lease reviewed independently before signing. Visit our marketing gallery on site in Sanur, open daily from 10 AM to 5 PM, or contact the team at atrea.id.

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