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 is the most common route for foreign buyers, and we hold leasehold inventory across the island. Browse leasehold properties.

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. It is 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, which is 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.