Can Foreigners Buy Property in Bali? Ownership Structures Explained
Foreign nationals cannot hold freehold title to land in Indonesia in the same way Indonesian citizens can. This does not mean foreign investors are excluded from Bali real estate. It means the transaction needs to be structured correctly from the start.
This guide explains the main ownership structures available to international investors, and how Aterra approaches this as part of every opportunity we present.
Ownership basics
Who can buy
Can a Foreigner Own Property in Bali?
A foreign individual cannot own land under Hak Milik (freehold) title. Foreign investors typically access Bali real estate through one of three routes: a leasehold agreement (Hak Sewa), a right-to-use title (Hak Pakai), or by establishing an Indonesian foreign-owned company, a PT PMA, which can then hold certain freehold rights on the company's behalf.
Each route carries different implications for duration, transferability, and cost, which is why the right structure depends on the specific investment, not a one-size-fits-all answer.
LEASEHOLD VS FREEHOLD
KNOW THE DIFFERENCE
Leasehold vs. Freehold: The Difference
Leasehold gives the holder the right to use land or a property for a fixed period, commonly 25 to 30 years, often with an option to extend. Ownership of the underlying land remains with the Indonesian titleholder. Freehold, by contrast, is full and permanent ownership of the land itself, and under Indonesian law this is reserved for Indonesian citizens, or for a PT PMA in specific circumstances.
For most international investors buying an individual villa or unit, leasehold is the structure used, and the terms of extension, transferability, and any guarantees around renewal should be reviewed carefully before committing capital.
COMPANY STRUCTURE
PT PMA EXPLAINED
PT PMA: Setting Up a Property-Holding Company as a Foreigner
A PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company registered in Indonesia. For investors pursuing larger or longer-term positions, holding property through a PT PMA can provide a more durable structure, including access to Hak Guna Bangunan (right to build) titles.
Setting up a PT PMA involves capital requirements, registration through Indonesia's OSS system, and ongoing compliance obligations, so it is typically considered for investors with a longer time horizon or a larger portfolio, rather than a single villa purchase.
OUR ROLE
STRUCTURED FOR YOU
How Aterra Structures This For You
Ownership structure is assessed as part of our evaluation of every opportunity, not as an afterthought once a decision has been made. Before you commit capital, we walk through which structure applies to the specific property, what it means for the length and security of your ownership, and how it affects your eventual exit.
Our role is to make sure the structure matches the investment, so there are no surprises after the fact.
contact
Clarity Before Capital
