Ownership Options

Depending on the purpose of acquiring real estate, the investment horizon, the intended use of the property, and the buyer’s legal status, Indonesian legislation provides several lawful mechanisms for foreign investors to own and use real estate.

The most common form of real estate ownership for foreign nationals in Bali is long-term leasehold. Under this structure, the investor receives the exclusive right to possess and use the property for the period specified in the lease agreement, with the possibility of extension in accordance with the terms agreed by the parties. The lease term typically ranges from 25 to 80 years, depending on the transaction structure and the conditions of the specific project.

Foreign nationals who meet the requirements of Indonesian legislation may acquire the right to use real estate under the Hak Pakai title, in cases and under conditions provided by applicable law. This right is subject to state registration and provides legal possession and use of the property for a defined period.

For investors considering real estate as a commercial asset, Indonesian legislation provides the possibility of establishing a foreign investment company, known as a PT PMA, and structuring property rights on a freehold basis. Such a company may be used for activities related to property management, leasing, hospitality, development, and other business activities permitted under Indonesian law. Depending on the nature of the business and the structure of the project, the company may acquire rights to land plots and real estate assets as provided by law for the purpose of carrying out its commercial activities.

The optimal investment structure is determined individually, taking into account: the investor’s citizenship and legal status; the purpose of acquiring the property; the intended holding period; the planned use of the property; tax implications; the requirements of applicable legislation. Before entering into a transaction, the buyer may receive a consultation regarding the available options for structuring the investment and legally formalizing real estate ownership in Indonesia. Golden Tree recommends that every foreign investor engage an independent legal and tax advisor to confirm the selected transaction structure and assess its compliance with the buyer’s investment objectives.

Visa requirements for entry into Indonesia depend on the traveler’s country of origin. Visitors are advised to check the applicable visa requirements in advance, as entry may be granted through a Visa on Arrival (VoA), an Electronic Visa on Arrival (e-VoA), or a visa obtained prior to arrival.

Citizens of any country may apply for long-term residence visas, subject to Indonesian immigration requirements.
Eligibility depends on the applicable visa category and the legal structure of property ownership or shareholding in an Indonesian legal entity, in accordance with Indonesian immigration regulations.

Where property is acquired under a freehold structure, the buyer becomes a shareholder of a company incorporated in Indonesia,  which entitles the buyer to apply for an Investor KITAS. KITAS is a temporary residence permit that allows foreign nationals to legally reside in Indonesia for a period of up to two years, to enter and exit the country without numerical limitation, and to sponsor eligible family members under a Family KITAS.