Can a foreigner buy property in Indonesia?
Written by Nacho Jorrín, partner at Agmakina Group, building and managing villas in Uluwatu since 2019 · Reviewed 7 October 2026
It is one of the questions we get most and the answer fits in a paragraph. Here is that paragraph expanded, with the source for each point and without promising what the law does not say.
Yes, but not freehold land: Hak Milik is for Indonesian citizens only. A foreigner can hold a villa in Indonesia through a leasehold, through the right of use (Hak Pakai) if resident in the country, or through a PT PMA company. What you should never do is buy through a nominee.
The starting rule
Indonesia's basic agrarian law (UUPA, Law 5/1960) reserves full land ownership, Hak Milik, for Indonesian citizens. A foreigner cannot hold it, on any island. And the law itself says that if it is transferred to a foreigner, that transfer is void.
What a foreigner can do
- Leasehold (long-term lease of the land). Usually 25 years with an option for 25 more. The building is yours and the contract is signed before a notary. It is the route most villa investors take. Detail in the leasehold guide.
- Hak Pakai (right of use). Regulation PP 18/2021 opens it to foreigners resident in Indonesia, with terms in blocks of 30+20+30 years. There is a minimum home price set by the ministry by area: confirm it at the date of purchase, because it changes.
- HGB through a PT PMA. An Indonesian company with foreign capital holds the right to build. What it implies and when it pays off: PT PMA for the villa investor.
The nominee risk
A nominee is an Indonesian citizen who appears as the holder of the land while you pay. It looks convenient and it is the most common way to lose everything: the legal holder is someone else and, given the rule above, a private agreement that contradicts it does not protect you. It is offered a lot. Say no.
Before paying anything
- Hire your own notary, not the seller's.
- Check title, zoning and building permits.
- Get the contract in writing, with terms and renewal option explicit.
- Pay in instalments tied to milestones, not everything upfront.
The whole process, in order, is in how to buy a villa in Bali and tax is in the tax guide. If you are weighing another island, see invest in Indonesia.
What people ask us most.
Can a foreigner own land in Indonesia?
No. Hak Milik, full land ownership, is for Indonesian citizens only under the basic agrarian law.
So what does a foreigner buy?
A right: leasehold (usually 25+25 years), right of use (Hak Pakai) if resident in the country, or the right to build (HGB) through a PT PMA. The building is theirs.
What is a nominee and why avoid it?
An Indonesian citizen who appears as the land owner while you pay. Legally the owner is them and a private agreement does not protect you. It is the most common way to lose the investment.
Do the rules change from island to island?
The basic rules are the same across the country. Zoning, prices and the market change, not the agrarian law.
Do I need to live in Indonesia to buy?
Not for a leasehold. For Hak Pakai, yes, residency is needed. For the PT PMA route you must set up and maintain the company.
The other guides.
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