Leasehold vs PT PMA: how foreigners actually own Bali property

Foreigners can’t hold freehold land in Indonesia. That single fact sends a lot of buyers running — and it shouldn’t. There are two well-established, fully legal routes to owning Bali property as a foreigner. Here’s the plain-English version.

Leasehold (Hak Sewa)

You lease the land and the building on it for a fixed term — typically 25 to 30 years, extendable only where the extension is written into the original contract — never automatic. The agreement is formalised before a notary. No local partner is required.

Leasehold is the norm, not a compromise. Most Balinese landowners have a deep cultural attachment to their land and prefer long leases to outright sales.

PT PMA (a foreign-owned company)

A PT PMA is an Indonesian limited company that you own. The company can hold property rights (Hak Guna Bangunan) and run a business — useful if you’re buying to operate a villa as a rental at scale.

It carries more setup and reporting overhead than leasehold, but gives you an operating vehicle and longer, renewable rights.

Which one?

• Buying one villa for yield or lifestyle? Leasehold is usually simpler and cheaper.
• Building a rental portfolio or operating commercially? A PT PMA may be worth the overhead.

There is no nominee structure here and no grey area — both routes are recognised under Indonesian law. We’ll connect you with licensed notaries and legal advisors to structure it properly.

This is general information, not legal advice. Always use a qualified Indonesian notary and lawyer.