In short, you can’t.

However, foreigners can acquire a leasehold title (Hak Sewa) to land or building for a defined period of time. This title can be held in your own personal name and is 100% legal and protected by the Indonesian law. Before the lease terms end, you may also have the choice for another extension and pay land value only.

There’s also only one way for foreigners to securely own property in Indonesia outright by setting up a foreign-owned company (PT PMA) and acquire the ‘Right to Build’ (Hak Guna Bangunan) certificate. Your property will then be under your company’s name legally, and considered as the company’s asset.

Yes, you can, however we don’t recommend it.

Besides it is not easy, the interest rates are so high (around 15% and up). We recommend to buy off-plan property instead. The payment installment is available during the construction progress, which usually within 10-14 month

Attractive destination and climate
Growing economy and infrastructure
Favorable investment policies & regulations
Strong rental demand
Huge digital nomad hub & community
Real estate market in Bali is stable with a good Return on Investment (averaging 8-12% ROI)

Yes!

Not only they are cheaper compared to freehold properties (therefore higher ROI), nowadays there are also many attractive options for leasehold properties offering up-to-date design & style considering aspects of sustainability and quality building structure.

Also, you may extend at the land value only in future market price. Make sure if you point out the extension on your lease agreement.

Can foreigners own property in Bali?
Can I get a mortgage as foreigner for buying property in Bali?
Why should I invest in Bali real estate?
Are leasehold properties attractive enough, considering we only 'own' it for certain period of time?
Is it safe to buy off-plan villa in Bali, since it's still only render pictures?

Guarantees of off-plan property may vary, but common ones include:

1. Completion date
2. Quality of construction
3. Title guarantee

It’s important to review the sales and purchase agreement in details before buying an off-plan property.

Hak Sewa or the leasehold title gives the holder the right of use for an empty plot of land or the building(s) on someone else’s land for a fixed period of time. A Leasehold Right title can be granted over land currently held under a Freehold title (Hak Milik), Right to Build title (HGB) or Right to Use title (Hak Pakai). Indonesian individuals, Indonesian legal entities and foreign individuals and legal entities may acquire Leasehold (Hak Sewa) properties.

The period of lease is generally between 1 to 25 years and usually there is an option to extend the lease, which is specified in the agreement between the land owner (Lessor) and the who rents the property (Lessee)

Hak Sewa cannot be used in the form of a mortgage, nor can it be registered with the National Land Agency. Subject to the conditions of a lease contract (lease deed), a foreigner may lease an empty plot of land, build permanent buildings on the land and resell the remaining balance of the lease term to any third party by way of a sub-lease or transfer of Leasehold Right.

Commercial leases of office space, factory buildings, restaurants, hotels, shops and the lease of residential premises are all examples of Hak Sewa titles. Residential properties can include apartments, condominiums, villas and houses.

Hak Milik or Freehold is the strongest form of land title ownership in Indonesia. Only individuals of Indonesian Nationality can own land under the Hak Milik title.

Consequently, neither limited liability companies (PT/Perusahaan Terbatas) nor foreign individuals may obtain land with a Hak Milik title. Subject to zoning restrictions, the Hak Milik title owner can use the land for any purpose, although it does not entitle the owner to exploit the natural resources found on or under the land. The title has no limit and may be sold, gifted, exchanged, handed down by a will and may also be used in the form of a mortgage.

Foreigners may, however, acquire land under a Hak Milik title in another form of entitlement called Hak Pakai or Right of use.

Hak Guna Bangunan (The right to build) or HGB title allows the holder to construct and own buildings or other structures on state-owned land (Tanah Milik Negara), freehold land (Hak Milik) and HPL (Hak Pengelolaan) land. This is the most common title for residential, commercial and industrial properties.

An HGB title can be owned by individuals of Indonesian Nationality, Indonesian legal entities, including Foreign Capital Investment Companies (Penanaman Modal Asing/PMA), or Domestic Capital Investment Companies (Penanaman Modal Dalam Negeri/PMDN). Thus, any legal entity such as limited liability companies (Perusahaan Terbatas/PT) which are established under Indonesian Law, with domicile in Indonesia, may obtain a property with HGB title. However, the HGB title is not available for foreign individuals.

The title is granted for an initial period of up to 30 years and can generally be extended for an additional period of 20 years. Subsequent extensions are at the discretion of the state and may be renewed for another 30 years. An approved capital investment company (i.e., PMA or PMDN company), may obtain HGB rights for a period of 80 years (i.e., 30-year initial term, plus 20 year extension term, plus 30 year renewal term).
HGB title over Freehold (Hak Milik) land is valid for a period of 30 years only. Any extensions beyond 30 years would be subject to a new agreement with the landowner and registration of a new HGB/Right to Build title over the privately-owned land.

An HGB/Right to Build title can be sold, gifted, exchanged or handed down and/or encumbered by a mortgage.

For a Freehold property transaction (Hak Milik)
The buyer: Land and building acquisition duty (BPHTB)
= 5% of NJOP value (government assessment)

The seller: PPh income tax = 2.5% of NJOP (government assessment)

For a Leasehold property transaction (Hak Sewa)
The buyer: no Tax implications

The seller: final income tax of 10% (Indonesian nationals or KITAS / KITAP holders) and
20% (foreigners without KITAS / KITAP)