Can a foreigner own land in Bali, and which land rights can a foreigner or a foreign-owned company hold?

The land rights, side by side

Right	What it is	Who can hold it	Term
Hak Milik (freehold)	The strongest, fullest right to land (UUPA Art. 20)	Indonesian citizens only, plus legal entities the Government designates (UUPA Art. 21)	No term
Hak Guna Bangunan (HGB) (right to build)	The right to build and own buildings on land that is not your own (UUPA Art. 35)	Indonesian citizens, and legal entities founded under Indonesian law and domiciled in Indonesia (UUPA Art. 36; PP 18/2021 Art. 34)	On State or Hak Pengelolaan land: up to 30 years, extendable by up to 20, renewable by up to 30. On Hak Milik land: up to 30 years, renewable by a new deed with the owner (PP 18/2021 Art. 37)
Hak Pakai (right of use)	The right to use land, for a term or for as long as it is used (PP 18/2021 Art. 49)	Indonesian citizens and companies, foreign legal entities with a representative office in Indonesia, and foreigners (UUPA Art. 42 says foreigners “berkedudukan di Indonesia”, resident in Indonesia; PP 18/2021 Art. 49(2))	On State or Hak Pengelolaan land: up to 30 years, extendable by up to 20, renewable by up to 30. On Hak Milik land: up to 30 years, renewable by a new deed (PP 18/2021 Art. 52)
Hak Sewa untuk bangunan (lease for building)	The right to use someone else’s Hak Milik land for building, for rent paid to the owner (UUPA Art. 44)	Indonesian citizens, foreigners resident in Indonesia, Indonesian legal entities, foreign legal entities with a representative office (UUPA Art. 45)	Set by the lease agreement; UUPA sets no term

Owning a house as a foreigner

PP 18/2021 (Articles 69 to 73) lets a foreigner who holds immigration documents in line with the law own a house or residential unit. For a landed house (rumah tapak), the house must sit on:

• Hak Pakai land, or
• Hak Pakai granted over Hak Milik land by a deed made before a land deed official (PPAT), or
• Hak Pakai over Hak Pengelolaan land under an agreement with the holder of that right.

Article 72 says this ownership is limited by a minimum price, the land area, the number of plots or units, and use as a residence. Article 73 leaves the detail to a ministerial regulation. We have not yet sourced the current figures for Bali, so we do not state them here; ask a notary or lawyer for the regulation that applies on the date you buy.

If the foreign owner dies, the house can be inherited; a foreign heir must also hold the required immigration documents (Art. 69(2) and (3)).

Companies: the PT PMA route

A foreign-owned company (PT PMA) must be a limited company under Indonesian law and domiciled in Indonesia (Permen Investasi/BKPM 5/2025, Art. 23(11)). That is the kind of company UUPA Art. 36 and PP 18/2021 Art. 34 allow to hold HGB, and PP 18/2021 Art. 49(2) also allows Indonesian legal entities to hold Hak Pakai. A company is only a fit if it runs a real business; see PT PMA for property investors.

Rules that catch people out

• Inheritance and marriage. A foreigner who acquires Hak Milik by inheritance without a will or through marital property must give it up within one year, or the right lapses and the land falls to the State (UUPA Art. 21(3)). The same applies to an Indonesian citizen who loses citizenship, and a person with dual citizenship cannot hold Hak Milik (Art. 21(4)).
• Indonesian spouses. An Indonesian citizen married to a foreigner can hold the same land rights as other Indonesian citizens, provided the land is not joint marital property, proven by a separation-of-property agreement made by notarial deed (PP 18/2021 Art. 70).
• “Nominee” arrangements. UUPA Art. 26(2) voids acts meant to pass Hak Milik to a foreigner “directly or indirectly”. Ask a lawyer about any structure where an Indonesian holds title for you.
• What happens at the end of a term. When HGB or Hak Pakai over State or Hak Pengelolaan land runs out after grant, extension and renewal, the land returns to the State or to the Hak Pengelolaan holder (PP 18/2021 Art. 37(3) and Art. 52(4)).

Who does this work

• Property lawyers check title and structure.
• Notaries and PPATs make the land deeds (see the glossary entry for PPAT).
• Company setup firms form and maintain a PT PMA.
• Land sourcing agents find the plot; they are not a substitute for a title check.