Can Foreigners Buy Land in Bali?

If you're planning to live, invest, or run a business in Bali or anywhere in Indonesia, you’ve likely asked: “Can I buy land here as a foreigner?” The short answer is no, at least not in the way most people imagine. According to Article 21(1) of Law No. 5 of 1960, only Indonesian citizens can own land ownership titles. However, there are alternatives that allow foreigners to gain secure and long-term rights to use or build on land, depending on their purpose and structure.

For business or investment, the most reliable path is through a foreign-owned company (PTPMA), which can hold a Hak Guna Bangunan (Building Use Rights or HGB) title. HGB offers strong land-use rights for up to 80 years and allows you to develop both commercial and residential properties. This setup is ideal for those planning to run a villa, hotel, or rental business, and the assets can even be passed down through share ownership. While this route requires proper setup, it’s the most secure and widely accepted method for foreign land control.

The second alternative is by engaging in Hak Sewa (Lease Rights), which is a simpler and more affordable alternative. You can lease land under your own name and use it for private residential purposes, including building or renovating a home. However, any lease for commercial use must still be done under a PT PMA.

The third option is Hak Pakai (Right to Use), which may be granted to foreigners living in Indonesia. However, this option is more restricted, requires government approval, and is mostly suitable for expats with residential intentions.

While Indonesian land laws may seem restrictive for foreigners at first glance, there are clear, legal pathways to secure land rights and build a life or business here. Each option comes with its own benefits, limitations, and requirements. The key is understanding whichstructure aligns with your goals—whether you're setting up a property business in Bali, investing in commercial property, or simply looking for a place to call home. As always, working with experienced legal and business consultants familiar with Indonesian property regulations is essential to ensure your investment is both secure and compliant.