
Bali’s real estate market is soaring! Commercial properties in Bali jumped by around 8.46% year-on-year in the last quarter of 2024, and residential properties saw a rise of about 1.79% throughout the year.
If you’re a foreigner eyeing this booming market, understanding the safest way to invest is crucial.
Strong Legal Structure
So, you’re digging the idea of planting your flag in Bali real estate business? Smart move! But when it comes to owning property in Indonesia as a foreigner, there are a few hoops to jump through. All the way back from Undang-Undang Pokok Agraria No 5 of 1960 on Basic Agrarian Law.
Ignoring these can land you in a complicated situation. Think ownership that’s shaky as a bad table or getting tangled in future land disputes. Definitely not the Bali vibe you’re after. That’s why getting your legal foundation solid is the absolute key to safe property buying. A strong legal structure ensures:
– Long-term security for your Bali digs.
– Solid asset protection for your investment.
– The confidence of investment value retention for years to come.
Think of it as laying down the right track for a smooth ride into Indonesian property ownership.
Understanding Limitation on Foreign Ownership
Alright, let’s break down the must-knows when it comes to the legal side of purchasing property in Indonesia as foreign nationals:
1. Owning the proper stay permit
• Think of the Limited Stay Permit or Kartu Izin Tinggal Terbatas/KITAS as your golden ticket. Indonesia’s Government Regulation No. 103 in 2015 says you pretty much can’t buy without it.
• It’s the immigration folks’ way of keeping tabs, and you will usually be looking at a renewal every 1-2 year to keep it valid.
2. Mind the Ownership Type:
• Full freehold ownership is generally exclusive to Indonesian citizens.
• Foreign individuals primarily have access to “Right to Use” (Hak Pakai) if they possess a KITAS or a Permanent Stay Permit or Kartu Izin Tinggal Tetap/KITAP).
• “Right to Build” (Hak Guna Bangunan/HGB) is typically granted to foreign-invested companies operating in Indonesia.
3. Know the Clock on Ownership:
• Unlike freehold that can stay in the family forever, your “Right to Use” has a timeframe.
• Typically, the initial grant is for a maximum of around 30 years.
• The good news? You can usually apply for extensions, and there are ways to pass it on to your heirs, though there are specific conditions attached.
4. Price Tags Apply:
• The government also sets a minimum price for properties that foreigners can buy.
• This isn’t a one-size-fits-all rule. The amount can change depending on where you’re looking and the type of property that you’re interested in.
Secure Your Investment with Seven Stones Indonesia
Understanding the core ownership regulations is just the beginning. Truly safe property acquisition in Indonesia for foreigners also involves understanding the step-by-step legal procedures, the ins and outs of land-zoning regulations, identifying those truly promising and prospective areas, and getting a clear picture of property-related taxes.
To get the full, expert guidance on all these crucial aspects and ensure your investment in Bali’s soaring real estate market is as safe and smart as possible, we invite you to join our seminar: “What’s the Safest Way for Foreigners to Buy Property in Indonesia?”

Don’t leave your investment to chance. Spaces for this event are limited, so secure your seat today by registering via this link. We can’t wait to see you at BWork Canggu!