How Foreigners Can Legally Own Property in Bali: Nominee, Hak Pakai & PT PMA Explained

Bali is one of the world’s top destinations for property investment. From luxurious villas to beachfront resorts, the island continues to attract global buyers looking for both lifestyle and profit. However, one of the most common questions international investors ask is: “Can foreigners legally own property in Bali?”

The answer is yes — but with important limitations and structures. In Indonesia, foreign nationals cannot directly hold Hak Milik (Freehold Title). Instead, there are three main legal pathways: Nominee Agreements, Hak Pakai (Right to Use), and PT PMA (Foreign-Owned Company).

1. Nominee Agreement

A nominee agreement is when a local Indonesian holds the title on behalf of a foreign buyer. While this is a common practice, it carries risks because the property is technically under the Indonesian nominee’s name. Legal contracts can be drafted to protect the foreign investor, but the structure remains less secure compared to other options.

✅ Pros: Simple, widely used
⚠️ Cons: Higher legal risks, relies on trust with the nominee

2. Hak Pakai (Right to Use)

Hak Pakai is a land title that allows foreigners to use and occupy property for residential purposes. It can be granted for up to 80 years (initial 30 years, extendable twice). This is the most secure option for individuals who want long-term residential property in Bali.

✅ Pros: Legal, secure, long duration
⚠️ Cons: Limited to residential use

3. PT PMA (Foreign-Owned Company)

For investors planning larger property or commercial ventures, establishing a PT PMA (Perseroan Terbatas Penanaman Modal Asing) is the most robust option. A PT PMA can legally acquire Hak Guna Bangunan (HGB), which allows property ownership for business purposes (hotels, villas for rent, etc.).

✅ Pros: Full legal structure, suitable for investment
⚠️ Cons: Requires company setup, higher costs

Choosing the Right Option

• Looking for a home in Bali? → Hak Pakai is best.
• Planning to run a rental business? → PT PMA is the ideal route.
• Short-term workaround? → Nominee agreement (but consult a lawyer first).

Conclusion

Foreigners can legally invest in Bali property, but choosing the right structure is crucial. At Aura Property, we guide international buyers through every step — from selecting the best ownership option to securing a safe and profitable investment.

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