Foreigners cannot own freehold land in Indonesia, but they can legally hold a villa in Bali, and most do, through one of two routes: a leasehold (Hak Sewa) for a fixed number of years, or Hak Pakai, a right-to-use title available to foreign residents. What foreigners should not do is buy freehold through an Indonesian nominee, however normal it looks. The safe answer is deliberately boring: lease it properly, in writing, with independent legal advice.
| Route | Who can hold it | Term | Registered title? | Where it is written |
|---|---|---|---|---|
| Freehold (Hak Milik) | Indonesian citizens only; a transfer to a foreigner is void by law | Permanent | Yes | Agrarian Law Art. 21(1) and 26(2) |
| Leasehold (Hak Sewa) | A foreign individual in their own name; no company is needed, and no visa is asked for in practice | Fixed years, set by contract; the law sets no cap | No. It is a contract, which can be noted on the owner's land certificate | Agrarian Law Art. 44 and 45 |
| Hak Pakai (right of use) | A foreigner with a valid immigration document (visa, passport or residence permit) | Up to 30 years on private land, renewable by a fresh deed; 30 + 20 + 30 on state land | Yes | Gov. Reg. 18/2021 Art. 52, 69 and 71; Bali price floor Rp 5 billion for a house (2022 ministerial decree) |
| HGB through a foreign-owned company (PT PMA) | The company, not you; only Indonesian citizens and Indonesian legal entities can hold HGB | 30 years, extendable | Yes, in the company's name | Gov. Reg. 18/2021 Art. 34 and 37 |
Freehold (Hak Milik) is off the table
Hak Milik, full freehold ownership of land, is reserved for Indonesian citizens. No company structure, marriage arrangement or clever contract changes that for a foreigner. The workarounds people reach for to get around it are precisely where the risk lives, so the honest starting point is to stop looking for a way to own the land and start looking at how to hold the villa legally.
Leasehold (Hak Sewa): the common route
You lease the land for a fixed term, commonly 25 to 30 years, frequently with a pre-agreed extension, and you own the building and everything in it for that term. It is clean, enforceable and what most new villa projects sell. It is also what you are buying at almost every reputable development on the west coast.
The things to confirm: the length of the lease and, if the land is itself sub-leased, the head-lease term, because your lease cannot outlive it. Get the extension terms written down rather than promised. And match the name on the land certificate to the party leasing to you. Core Villas, for reference, sells on a 25-year leasehold with a pre-agreed extension to 2084, the terms set in a bilingual agreement.
Hak Pakai: the residence route
Hak Pakai is a right-to-use title available to foreigners who hold a valid Indonesian immigration document, which the regulation counts as a visa, a passport or a residence permit. It suits a home you actually live in rather than a pure rental play, and it comes with its own conditions and minimum-value thresholds. If you are relocating and will live in the home, it is worth asking an independent property lawyer whether Hak Pakai fits your situation better than a lease.
The nominee trap, and how to buy safely
A nominee arrangement puts freehold land in an Indonesian person's or company's name while a side agreement says it is really yours. It is widespread, and it is fragile: Article 26(2) of the Agrarian Law makes a transfer of freehold to a foreigner void by law, so the side agreement protects nothing, and Bali has been tightening enforcement against exactly this. Careful buyers avoid it entirely. At Core Villas every buyer is a foreign individual holding the lease in their own name; there is no company route and no nominee.
Buy safely instead: take independent Indonesian legal advice before you commit, use your own notary rather than only the seller's, get the agreement bilingual and notarised with the Indonesian text governing, and never wire money before a notary has confirmed the certificate and the structure. This is boring on purpose. Boring is what protects the money.
