Foreigners cannot directly own freehold property in Indonesia under personal names.
Options include:
• Right to Use (Hak Pakai) – Allows foreigners with a residence permit (KITAS/KITAP) to hold long term rights.
• Through a PT PMA (foreign-owned company) – Can own land under the Right to Build (Hak Guna Bangunan, HGB).
• Freehold (Hak Milik) – Full ownership, most secure, but only for Indonesian citizens.
• Leasehold – Temporary ownership for a specified period (20–30 years, often with extension options).
• After expiration, the property reverts to the landowner unless extended.
Usually, yes, if agreed in the contract. Extensions often come with additional costs and should be clearly
defined in the agreement
No, and it is not recommended to use a “nominee” structure (placing the property under an Indonesian
friend/partner’s name) as it carries legal risks.
Yes. Main zones include:
• Pink Zone – Tourism Zone (Pariwisata) – Can build villas and operate rentals.
• Yellow Zone – Residential Zone (Pemukiman) – Suitable for private homes, not commercial rentals.
• Green Zone – Protected, no development allowed.
Most sellers expect negotiations. Discounts of 5–15% are common, depending on market demand and
property status.
• Buyer’s Tax (BPHTB) – 5% of the property’s taxable value.
• Notary/Legal Fees – Usually 1% of the purchase price.
Yes, called Pajak Bumi dan Bangunan (PBB) – typically very low compared to Western countries (from a few hundred thousand to a few million IDR per year).
Transactions must be settled in Indonesian Rupiah (IDR) as per Bank Indonesia regulations, but negotiation often happens in USD or EUR for clarity.
Typically 4–8 weeks, depending on the property’s legal readiness and payment terms.
The notary is a government appointed official responsible for verifying documents, ensuring the property is legally clear, and registering the transaction.
Conduct due diligence:
• Verify land certificate (SHM/HGB).
• Confirm zoning.
• Check tax payment status.
• Ensure no encumbrances or disputes.
Yes, if located in a Tourism Zone and if you hold a rental license (Pondok Wisata or Hotel License).
Not mandatory but highly recommended, especially for foreign buyers. Companies like Star Villas Bali handle marketing, bookings, maintenance, and staff management.
Well-managed villas in prime locations often achieve 8–12% annual net return, depending on occupancy, pricing, and expenses.
Yes. The remaining lease term will be transferred to the new buyer. Properties with longer remaining leases sell faster.
The property reverts to the landowner unless an extension was agreed upon beforehand.
Yes, most villas have access to electricity (PLN), water (PDAM or well), internet (fiber optic in many areas), and waste collection.
No, it is legally risky and not recommended. Using a nominee can lead to disputes or loss of rights.
Very limited options. Most foreign buyers purchase with cash or financing from their home country.
For leasehold or PT PMA ownership, your rights remain valid as per the contract or company structure.