In 2026, the question “Can foreigners legally buy property in Bali?” is no longer debated. Now it is a matter of choosing the correct legal structure.
With the enactment of Government Regulation (PP) No. 28 of 2025, Indonesia has overhauled its business licensing system, making transparency and digital compliance the new standard.
For international investors, this regulation solidifies the PT PMA (Foreign-Invested Company) as the most secure and sophisticated vehicle for property ownership, offering a level of protection that individual leases or informal agreements simply cannot match.
How Foreigners Buy Property in Bali under PP No. 28/2025
Indonesia’s Government Regulation/Peraturan Pemerintah No. 28/2025 marks a pivotal shift from “building first, licensing later” to a strict, data-driven workflow.
This regulation integrates every aspect of property ownership —from land-zoning to building approvals— into a single digital trail within the OSS (Online Single Submission) system.
➤ The “Risk-Based” Advantage: Under this new law, property development is categorized by risk. By using a PT PMA, investors gain a formal corporate identity that is recognized by the central government, ensuring that every permit issued is immutable and legally tied to the company’s tax ID (NIB or Business Identification Number).
➤ The Death of Shortcuts: This regulation effectively closes the “grey areas” often used in the past, rewarding investors who choose the structured path of a PT PMA with high-speed processing and total legal certainty.
➤ Digital Zoning (Conformity of Spatial Utilization Activities/KKPR): Under PP 28/2025, your property must be linked to the digital spatial map. This ensures that the land is pre-verified for your specific business activity (KBLI) before any funds are committed, protecting you from buying in the wrong zones.
Can Foreigners Legally Buy Property in Bali with Less Capital?
A major 2026 milestone for investors is the reform of the PT PMA capital requirements. Previously, the high barrier of entry was a deterrent for many, but new ministerial regulations (Regulation of Indonesia Investment Coordinating Board no 5/2025) have made PT PMA as the “best vehicle” significantly more accessible:
➤ The IDR 2.5 Billion Rule: While the total investment plan must still exceed IDR 10 Billion, the mandatory paid-up capital (the amount you must actually deposit) has been reduced to IDR 2.5 Billion.
➤ Capital Efficiency: This allows investors to keep more liquidity for construction, high-end finishing, and marketing rather than letting idle cash sit in a bank account. It effectively lowers the “entry price” for professional-grade ownership in Bali.
Why PT PMA is the Best Choice for Safety in 2026
When analyzing if foreigners can legally buy property in Bali, the PT PMA stands out because it allows for the Rights to Build title (in Bahasa, it’s or HGB/Hak Guna Bangunan). In the eyes of the 2026 legal framework, the HGB via a PT PMA is the closest functional equivalent to freehold ownership available to foreigners.
➤ Control & Inheritance: Unlike a personal lease, an HGB title held by a PT PMA is a registered land certificate. It can be sold, mortgaged, and easily transferred to heirs by simply updating the company’s shareholding structure.
➤ Commercial Legitimacy: For those intending to generate rental income, PP 28/2025 mandates that only a legal entity (like a PT PMA) with the correct KBLI (Business Classification) can legally operate a hospitality business. It turns your villa from a “hobby” into a compliant, bankable international asset.
Foreigners Buy Property in Bali for Resale Value
In the current climate, the focus for international investors has shifted toward “Asset Integrity.” When foreigners buy property in Bali today, the most valuable part of the transaction isn’t just the land itself—it is the legal compliance that comes with it.
With stricter enforcement of land-zoning, building permits and environmental standards under PP 28/2025, “compliance is the new luxury.” Buyers are no longer just looking at a beautiful view; they are looking for a “clean” asset with a digital NIB (Business ID) and a clear tax history. A properly structured investment ensures that your exit strategy is as secure as your entry, guaranteeing that the property remains a liquid and attractive asset in the secondary market.
How Seven Stones Indonesia Helps Foreigners Buy Property in Bali
The new laws like PP No. 28/2025 are good for safety, but local regulations can be hard to understand. You need a “bridge” to help you move from your idea to a real, legal home. Small mistakes in the digital system can cause big problems later.
Partnering with Seven Stones Indonesia gives you a legal team of experts to assist with your property investment. You receive professional assistance with company setup, land-zoning checks, and contract reviews. Reach out today to learn more about how your investment is fully protected by the latest 2026 Indonesian laws.