About Us

Foreigners cannot own freehold (Hak Milik) land in Indonesia. However, foreign individuals and foreign-owned companies (PT PMA) can legally hold property through three recognised structures: Hak Pakai (Right to Use, for individuals with a KITAS or KITAP), Hak Guna Bangunan (Right to Build, for PT PMA, up to 80 years), and long-term leasehold (Hak Sewa, typically 25-30 years renewable). Each structure has different eligibility rules, tax treatment and exit options, so the right choice depends on whether the property is for personal use, a villa rental business or a commercial development.

These are the four main land titles in Indonesia, and only three are available to foreigners.

• Hak Milik (Freehold): Full ownership, reserved for Indonesian citizens only.
• Hak Pakai (Right to Use): Available to foreigners holding a valid KITAS/KITAP. Initial term up to 30 years, extendable by 20 + 30 years (total 80 years).
• Hak Guna Bangunan (HGB): Right to build on land, granted to Indonesian companies and PT PMA. Initial 30 years, extendable to 80 years total.
• Leasehold (Hak Sewa): Contractual lease from the landowner, typically 25-30 years with renewal options negotiated in the deed.

We draft and register the title that matches your goals and ensure it is properly recorded at the National Land Agency (BPN).

A PT PMA is the standard legal vehicle for foreigners doing business in Indonesia. Setting one up involves six core steps: (1) confirm the business activity (KBLI code) is open to foreign investment, (2) reserve a company name with the Ministry of Law & Human Rights, (3) prepare the Deed of Establishment with a notary, (4) obtain the NIB (Business Identification Number) through the OSS system, (5) register for tax (NPWP) and VAT where applicable, and (6) secure any sector-specific operating licenses. Minimum paid-up capital is currently IDR 10 billion (declared, not always paid up front depending on KBLI).

A notary in Indonesia is a public official who drafts and authenticates legal deeds; a PPAT (Pejabat Pembuat Akta Tanah) is a notary specifically licensed to handle land transactions. For property deals in Bali the PPAT prepares the Sale and Purchase Deed (AJB), the Lease Deed (Akta Sewa) or the HGB transfer, verifies the authenticity of the certificate at BPN, calculates and collects the transfer taxes, and registers the new title in the buyer's name. Without a PPAT deed, a property transfer is not legally recognised in Indonesia.

Professional fees for a standard PT PMA setup in Bali typically range from IDR 25 million to IDR 45 million depending on the complexity of the business activity, number of shareholders and whether licenses in restricted sectors are required. On top of that you should budget for government fees, tax registration, virtual or physical office address, and the declared minimum investment of IDR 10 billion. We provide a fixed-fee quote after confirming your KBLI code and shareholder structure, so there are no surprise costs.

Due diligence is the legal audit of a property before you sign or pay anything. In Bali, a proper due diligence check verifies: (a) the authenticity of the land certificate at BPN, (b) that the seller is the legal rightful owner, (c) the zoning classification (green, yellow, pink, some zones prohibit villas or commercial use), (d) that there are no liens, disputes or inheritance claims, (e) that building permits (PBG/IMB) and SLF are in place, and (f) that tax payments (PBB) are current. Skipping due diligence is the number one reason foreign buyers lose money on Bali real estate.

A straightforward PT PMA can be fully registered in 2 to 4 weeks. The Deed of Establishment and NIB are usually issued within the first 7-10 business days through OSS. Tax registration (NPWP) adds another few days, and sector licenses, if required (tourism, construction, education, etc.), can extend the timeline by 2-6 weeks. We handle every step remotely, so founders do not need to be physically in Indonesia to incorporate.

Buying property in Bali triggers several one-off and recurring taxes. The main ones are: BPHTB (buyer's transfer tax, 5% of the transaction value above a regional threshold), PPh Final (seller's income tax on the sale, 2.5%), PPN (VAT of 11% when buying new property from a developer), notary and PPAT fees (around 1%), and annual PBB (land & building tax). Leasehold transactions are taxed differently, we explain the exact numbers for your specific deal before the deed is signed.

No, and we strongly advise against nominee structures. A "nominee agreement" (where an Indonesian citizen holds Hak Milik land on behalf of a foreigner) is explicitly prohibited under Indonesian Agrarian Law and has been repeatedly voided by Indonesian courts, leaving the foreign "owner" with no legal rights. Foreigners have three legal and secure alternatives: Hak Pakai in their own name, Hak Guna Bangunan through a PT PMA, or a registered long-term lease. Any consultant who recommends a nominee structure is putting your investment at serious risk.

An SLF, or Certificate of Worthiness of Function, is the Indonesian occupancy certificate that confirms a building meets safety, technical and zoning standards. Since the 2021 regulatory overhaul that replaced IMB with PBG, an SLF is mandatory before any building can be legally occupied, rented out or operated commercially. Villas without an SLF cannot legally accept short-term rental guests, and businesses cannot obtain full operating licenses. We assist owners in obtaining PBG and SLF retroactively and ensure new builds are compliant from day one.