Freehold property in Bali

What freehold means for a foreign buyer

Freehold (Hak Milik) is reserved for Indonesian citizens under the Basic Agrarian Law No. 5/1960. So for a foreign buyer, a listing marked freehold means a right to build (HGB) held through a foreign-owned company (PT PMA), or a right of use (Hak Pakai) in your own name. A title held for you by an Indonesian nominee is void by law.

HGB through a PT PMA can run up to 80 years, in stages of 30, 20 and 30 years, each one approved separately, and the company has setup costs and yearly compliance for as long as it holds the land. Hak Pakai is open to foreigners with the required immigration documents, within limits on price, land area and number of properties; for a landed house in Bali the regulated minimum price is Rp 5 billion.

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