Can I Buy Land in Bali? Everything You Need to Know About Land Ownership for Foreigners

Bali is one of the most popular destinations for people looking to invest in tropical property, whether for building a dream villa, launching a business, or making a long-term investment. With its natural beauty, vibrant culture, and growing economy, it’s no surprise that interest in buying land in Bali continues to rise. However, for foreigners, the process is not as straightforward as it may be in other countries. At The Bali Lawyer, a trusted legal service based in Bali, we specialize in helping clients understand the regulations and procedures surrounding land ownership in Indonesia.

This comprehensive guide will walk you through everything you need to know if you’re asking the common question: “Can I buy land in Bali?”

Understanding Land Ownership in Indonesia

Indonesian land law is rooted in the Basic Agrarian Law of 1960, which governs land rights throughout the country, including Bali. Under this law, full land ownership — known as Hak Milik (Freehold Title) — is restricted exclusively to Indonesian citizens. This means that foreigners cannot legally own freehold land in their name.

However, there are several legal options available for foreigners who wish to control or invest in property in Bali. These include:

  • Hak Pakai (Right to Use)

  • Hak Guna Bangunan (Right to Build)

  • Leasehold Agreements

  • Using a PT PMA (Foreign Investment Company)

Let’s explore each of these options in more detail.

1. Hak Pakai – Right to Use Land

Hak Pakai allows a foreigner to use a piece of land or property for residential purposes. This title is granted for an initial period of up to 30 years and can be extended twice — first by 20 years and then by another 30 years — giving a total usage period of 80 years.

To be eligible, the foreigner must have a valid Indonesian residence permit (KITAS or KITAP) and the land must be used for personal use only — not for commercial activities. Hak Pakai is one of the safest and most widely used legal titles for foreigners looking to reside long-term in Bali.

2. Hak Guna Bangunan – Right to Build

Hak Guna Bangunan (HGB) is a title that permits a foreigner or a foreign-owned company to build and use a structure on land for commercial or residential purposes. This right is typically valid for 30 years and extendable for another 20 and 30 years, respectively.

This title is suitable for those looking to operate a business or develop a commercial property. It is usually held by a legal entity such as a PT PMA (a foreign-owned company), which gives more flexibility in terms of use and expansion.

3. Leasehold Agreements – Long-Term Leasing

Long-term leases are a common and legal method for foreigners to control land in Bali. Lease agreements can span from 25 to 30 years or more and are renewable by mutual agreement. While you won’t technically own the land, you have the legal right to use it for the duration of the lease — often for both residential and commercial use.

Leasehold agreements should always be formalized through a notary and registered with the Indonesian National Land Agency (BPN) to be legally valid. At The Bali Lawyer, we help you draft and register lease agreements to ensure your rights are protected throughout the lease period.

4. Using a PT PMA – Foreign Investment Company

Setting up a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is another way for foreigners to legally acquire land under Hak Guna Bangunan. A PT PMA is a foreign-owned legal entity registered in Indonesia, and it can engage in various business activities, including property development and ownership.

This method is ideal for investors and entrepreneurs planning to launch a business or develop real estate. With a PT PMA, you can also obtain work permits and stay permits more easily.

Our legal team at The Bali Lawyer provides full legal support for setting up a PT PMA, obtaining necessary licenses, and managing property transactions under your company’s name.

Risks of Buying Land Through an Indonesian Nominee

Some foreigners attempt to acquire land by using an Indonesian citizen as a nominee. In this arrangement, the property is registered under the local person’s name, while a private agreement states that the foreigner is the actual owner. While this method may seem convenient, it is legally risky and strongly discouraged.

Nominee arrangements violate Indonesian law, and such agreements are not enforceable in Indonesian courts. If the nominee decides to reclaim the land or if legal disputes arise, you could lose your entire investment.

To protect your rights and investment, always use legal, government-recognized methods such as leaseholds, Hak Pakai, or a PT PMA structure.

Steps to Legally Acquire Land in Bali

At The Bali Lawyer, we guide our clients through each step of acquiring land in Bali legally and safely. Here’s an overview of the general process:

  1. Initial Consultation – Understand your goals and determine the most appropriate legal structure for land acquisition.

  2. Land Due Diligence – Conduct background checks on land ownership status, zoning, and certificates.

  3. Legal Structure Setup – Assist in establishing a PT PMA or organizing documents for Hak Pakai or lease agreements.

  4. Notarial Drafting and Agreements – Draft and notarize legal documents in accordance with Indonesian law.

  5. Land Registration – Register land rights and agreements with the Indonesian National Land Agency (BPN).

  6. Ongoing Legal Support – Provide assistance for permits, renewals, and compliance throughout your ownership or lease.

Important Considerations Before Buying Land in Bali

Before moving forward with any land acquisition in Bali, it’s important to consider the following:

  • Zoning Regulations: Make sure the land is zoned appropriately for your intended use, especially for business or commercial activities.

  • Access and Infrastructure: Verify access roads, utilities, and drainage to avoid complications during development.

  • Environmental Restrictions: Some areas are protected or have building height and density restrictions.

  • Local Community Support: Involving and respecting local communities can help ensure smoother development and long-term stability.

  • Permits and Licenses: You may require building permits (IMB or PBG), environmental approvals, and operational licenses.

Why Work with The Bali Lawyer?

Purchasing or leasing land in Bali as a foreigner can be a complex and time-consuming process without proper legal guidance. At The Bali Lawyer, we are a professional law service based in Bali with deep knowledge of Indonesian land law and foreign investment regulations.

We help clients navigate the legal landscape to ensure full compliance and risk mitigation. From contract drafting and title verification to company formation and notarial services, we are your trusted legal partner in Bali.

Our goal is to ensure your land investment is secure, transparent, and legally valid under Indonesian law.

Ready to Start Your Land Journey in Bali?

If you’re asking, “Can I buy land in Bali?” — the answer is yes, but only through the right legal channels. Whether you’re looking to build a home, invest in property, or open a business, it’s essential to work with a reliable legal service that understands the local regulations.

Contact The Bali Lawyer today for a free consultation and let us help you turn your Bali property goals into reality — legally, safely, and successfully.