Short answer: foreigners cannot own freehold land (Hak Milik) in Bali. They can legally control land through a registered leasehold (Hak Sewa), a Right of Use (Hak Pakai) if they hold Indonesian residency, or a foreign-owned company (PT PMA) holding a Right to Build (HGB). Putting land in an Indonesian friend’s name (a “nominee” deal) is not legal and is the most common way foreigners lose money.
Last updated: November 2026. This page is general information, not legal advice. Every purchase should be checked by a licensed notary (PPAT).
The three legal options at a glance
| Option | What you get | Typical term | Best for |
|---|---|---|---|
| Leasehold (Hak Sewa) | A lease from the Indonesian owner, signed before a notary | Commonly 25–30 years, with an extension option agreed upfront | Holiday homes and personal use. The simplest route |
| Right of Use (Hak Pakai) | A title right held in your own name | Granted in stages, up to about 80 years in total | Foreigners with a KITAS or KITAP residency permit |
| PT PMA + HGB | A foreign-owned Indonesian company holds a Right to Build | 30 years, then extensions of 20 and 30 years | Rental villas, hotels and investment projects |
1. Leasehold (Hak Sewa)
This is what most foreign buyers in West Bali choose. You pay upfront for a set number of years, the lease is signed before a notary, and it can be registered. The key points to negotiate are the length, the extension price (fixed now, not “to be agreed later”), what happens to buildings at the end, and whether you can sell or sublet the lease.
2. Right of Use (Hak Pakai)
Foreigners who live in Indonesia with a KITAS or KITAP can hold a residential property under Hak Pakai in their own name, subject to a minimum property value set by region. In Jembrana, it is IDR 5 billion (~$320,000 USD) for a landed house and IDR 2 billion for an apartment
3. PT PMA (foreign-owned company)
A PT PMA is an Indonesian company with foreign shareholders. It can hold land under HGB and run a rental or hospitality business legally. It costs more to set up and maintain (capital requirements, accounting, tax reporting), so it makes sense for income-producing projects rather than a single holiday home.
Why nominee arrangements are dangerous
A nominee deal puts the land in an Indonesian citizen’s name, with side agreements giving you control. Indonesian law does not recognise these arrangements. If the relationship breaks down or the nominee dies, you may have no legal claim to the land.
Frequently asked questions
Can I buy freehold land if I marry an Indonesian? Mixed couples face specific rules depending on whether a prenuptial agreement is in place. If it is your situation we will explain it to you in detail during our first exchange.
Is leasehold safe? Yes, when the title is checked, the lease is signed before a notary, and all owners and heirs sign. Most problems come from skipping these checks.
What zoning do I need to build a villa? Check the zoning (KKPR) before you commit. Tourist zoning usually allows villas and rentals; agricultural land often cannot be built on.
Talk to us
West Bali Real Estate helps buyers find and check land in Medewi, Pulukan, Balian and the wider Jembrana coast. Download our free West Bali Land Buyer’s Guide, or message us on WhatsApp to talk it through.
