Indonesia is one of Asia’s fastest-growing destinations for property investors. Its natural beauty, expanding tourism sector, and strong rental demand make it ideal for resort development. For those seeking to invest in a resort in Indonesia, understanding the regulations and opportunities is key to building a secure and profitable venture.
Can Foreigners Buy Resort Property in Indonesia?
Foreign investors cannot directly buy freehold land in Indonesia. National agrarian law restricts land ownership to Indonesian citizens. However, this does not mean that opportunities are closed to foreigners. Several legal structures allow foreign investors to hold long-term rights to property and operate resorts.
The most common rights available are:
- Hak Pakai (Right to Use): Grants the right to use land for up to 25 years, with extensions available.
- Hak Guna Bangunan (Right to Build): Allows construction on land for up to 80 years with renewals.
- Leasehold (Hak Sewa): Provides long-term leasing agreements, usually between 25 and 30 years, with renewal options.
These options ensure that while foreigners cannot own freehold titles, they can still legally secure property and invest in resorts.
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Legal Pathways for Resort Property Investment
The most reliable legal pathway for foreigners is to establish a PT PMA, or foreign-owned company. This structure allows the company to legally hold property rights, including Hak Pakai and Hak Guna Bangunan. It also enables full business operations, such as managing a resort or villa rental business.
Unlike nominee agreements, which are risky and legally unprotected, a PT PMA offers clear security and compliance with Indonesian law. Additionally, this structure supports visa sponsorship for investors and staff, providing more flexibility in managing your investment.
Foreign investors can also consider leasehold agreements. While they are simpler, they offer less control than a PT PMA. For those aiming for long-term operations and scalability, the PT PMA remains the most practical and secure option.
Step-by-Step Process to Invest in Resort Property
Investing in a resort property in Indonesia requires following a clear process:
- Setting up a PT PMA
You need at least two shareholders and a paid-up capital of IDR 10 billion. The company must be registered with the relevant authorities and have a legal business address. - Obtain Investment Approval & Business License through OSS System
The Online Single Submission (OSS) system manages the approval process. Here, you apply for a business license, register your tax numbers, and obtain the necessary permits for operating a resort. - Compliance with Local Regulations
Investors must comply with employment laws, register employees with BPJS for health and social security, and meet all tax obligations. Understanding labor law is essential when hiring staff. - Post-Registration Requirements (Lapor LKPM)
Once established, the PT PMA must regularly submit investment activity reports (LKPM) to BKPM. This ensures ongoing compliance and protects your investment.
Following these steps with the support of experienced consultants ensures a smooth process and helps you avoid legal pitfalls.
Potential Returns & Opportunities
Indonesia’s tourism industry is booming, creating high potential for resort investments. In Bali, investors can expect rental yields between 6% and 10%. Lombok, which is rapidly emerging as a tourism hotspot, offers yields between 8% and 12%. Even Jakarta’s central business district attracts steady returns of 4% to 7% from long-term rentals.
The opportunities extend beyond numbers. With over 100 million domestic trips recorded in 2025 and strong international arrivals from Australia, China, and Malaysia, the demand for quality resorts continues to grow. Foreign investors benefit from this rising demand, especially when focusing on sustainable and experience-driven hospitality.
Read More: Investment in Resorts: Key Alternative Amid Residential Decline
Best Locations for Resort Property Investment
Here are three of the most promising destinations to consider:
This beachfront land in Soka, Tabanan, presents a unique opportunity to invest in Bali’s western coastline, ideal for a resort or villa development. Unlike the crowded tourist hubs, Tabanan provides a serene environment perfect for high-end resorts. The area is known for its rice terraces, black sand beaches, and cultural attractions, making it an excellent draw for visitors seeking tranquility.
This location shows strong potential for eco-resorts or wellness retreats. With its growing popularity and untouched charm, Tabanan delivers both investment security and long-term growth opportunities. It’s an attractive choice for those who want to combine lifestyle and profitability.
This land in Torok Bay highlights why Lombok is becoming a top alternative to Bali. The island has pristine beaches, rising tourism infrastructure, and government support for development. Torok Bay, in particular, offers stunning coastal scenery that appeals to luxury travelers.
Investing here provides access to a market that is still in its early growth stages, offering higher yields and appreciation potential. As demand rises, Lombok is positioned to become one of Indonesia’s strongest resort markets, making it a timely investment choice.
This beachfront land in Rote Island showcases the potential of Indonesia’s lesser-known destinations. Rote is celebrated for its crystal-clear waters, world-class surfing, and untouched natural landscapes. It is a perfect match for boutique resorts that target adventure travelers and eco-tourism enthusiasts.
For investors, this is a chance to enter a market with minimal competition and high growth potential. Rote’s exclusivity creates opportunities for unique hospitality concepts that cater to niche markets. With tourism steadily expanding, Rote represents a frontier investment destination worth serious consideration.
Partner with Seven Stones Indonesia for Your Investment Success
At Seven Stones Indonesia, we specialize in guiding foreign investors through every stage of resort property investment. From setting up a PT PMA and handling legal compliance to identifying prime land opportunities, our team provides end-to-end support. Partner with us to navigate Indonesia’s property market confidently and unlock the best investment opportunities.
Contact us today to start your journey toward owning a resort in Indonesia.
Source: indoned.id, ldgroup.nl
Image: Getty Images, Seven Stones Indonesia