Buying a hotel in Bali and Indonesia: land titles, PT PMA companies and the 2026 permit changes

Indonesia does not let a foreign individual own the land a hotel stands on, and since May 2026 Bali has also closed the door on new foreign-owned registrations for small hotels. What remains is narrower than most sales brochures suggest: a PT PMA company holding a commercial land title, a lease, or a larger hotel in the tier that is still open. This guide sets out the structures, the 2026 change, the taxes and the market data we could verify. For villas and houses the rules differ; see buying property in Bali: prices, yield and rules.

For hotels as an asset class, start with the hotel real-estate investment guide for private investors.

Which land title a hotel can sit on

• Hak Pakai, the right of use. It is the title open to foreign individuals, and law-firm summaries describe it as a residential and non-commercial right. It is the title behind a foreign owner's private villa, not behind a hotel.
• Hak Guna Bangunan (HGB), the right to build and use. This is the usual commercial title for hotels. It can be held by a company established under Indonesian law, including a foreign-owned PT PMA. On paper it runs up to 30 years, extendable by 20 and renewable by another 30, up to 80 years in total, but each step is an application with conditions, so count only the years actually granted.
• Leasehold, Hak Sewa. A contract with the landowner for a fixed term. It gives no title of its own, depends on the owner and on the quality of the notarised contract, and its term determines what a future buyer or bank will pay.

The test for any hotel is simple: whose name is on the land certificate, what title is it, and how many years remain.

PT PMA and the risk tiers

A foreign-owned hotel business normally sits in a PT PMA, a foreign-investment limited company. Licences are issued through the Online Single Submission system by risk tier, and for hotels the tier follows size. According to law-firm and consultant summaries:

• Medium-high risk: 101 to 200 guest rooms, 100 to 200 employees and a building of 6,000 to 10,000 square metres.
• High risk: more than 200 guest rooms, more than 200 employees and a building of 10,000 square metres or more.

A PT PMA also normally has to show an investment plan of more than 10 billion rupiah, about 650,000 US dollars, per business line. That threshold is far below the cost of a real hotel, so it is rarely the binding constraint.

May 2026: what changed in Bali

Since the third week of May 2026, Bali's provincial government has stopped the licensing system from accepting new foreign-owned registrations in the low-risk and lower-medium-risk small-business categories. The list reported in the press includes budget hotels and guesthouses, small star-rated hotels in buildings under 6,000 square metres, and real-estate leasing and property management. Existing foreign-owned businesses may continue to operate. We covered the original report in Bali closes new foreign investment permits in 18 business categories.

What follows from it, as we read the reports:

• A new PT PMA can no longer register a small or boutique hotel in Bali directly. Hotels in the 101-room tier and above remain open.
• For a boutique property, the routes that remain are legal questions, not shortcuts: taking over an existing licensed business, or a structure with an Indonesian owner. We found no source that describes how a change of foreign ownership in an existing hotel company is treated, and nominee arrangements are legally fragile in Indonesia. Get a written opinion from an Indonesian notary and lawyer before signing anything.
• Separately, reports describe a moratorium on new hotels, villas and nightclubs in parts of southern Bali, said to last up to ten years depending on environmental assessments. We could not confirm the exact date or text, so check the current status. A limit on new supply may help existing licensed hotels, but it also complicates any expansion plan.

What the market data shows

Foreign visitors to Bali were about 3.2 million in the first half of 2026. In the first quarter, international arrivals were 1,466,546, up 1.04% on a year earlier, and February rose 9.23%. A hotel-sector report for the first half describes operators prioritising room rates over occupancy, and Horwath HTL reported that the 2025 average room rate rose 2.4% in rupiah to about 2.4 million rupiah while falling about 2% in US dollars because of currency movements. If your cost base is in dollars and your revenue in rupiah, currency is part of the return.

Supply is the other half of the picture. Villa-agency market notes report island-wide pressure on villa occupancy and rates in 2026 and very fast growth in listings, and press reports describe an August 2026 removal of unlicensed stays from booking platforms, which required a business registration number and a hotel-type activity code. Those notes cover villas and short lets, not hotels, and each is a single non-institutional source, so read them as direction, not data. We found no verified price per key or capitalisation rate for Bali hotels; the way to build your own is in how to value a hotel for sale.

Taxes and levies to model

• Corporate income tax of 22% on a PT PMA's taxable profit.
• Hotel tax, now part of the regional tax on goods and services, at 10% on accommodation and food and drink in most of Bali. It is collected from guests and remitted, so it affects pricing, not margin directly.
• Dividends paid to foreign shareholders: 20% withholding, or lower under a tax treaty, commonly 10% to 15%. Check the rate in the treaty between Indonesia and your country.
• The tourist levy of 150,000 rupiah per international visitor, in force since 14 February 2024, is paid by the tourist through the official app, not by the hotel.
• Transfer taxes and notary costs on land or a company share purchase follow different rules; the villa figures in the Bali guide above are not a safe proxy.

How these combine with your home-country tax is covered in holding structures and taxes for hotel owners.

Which route for which budget

• Small budgets: a licensed villa with a rental permit is not a hotel and does not carry hotel economics. Land zoned as agricultural cannot get a rental licence according to agent and legal blogs, so check the zoning map.
• Middle budgets: the boutique hotel of a few dozen rooms. This is the segment hit by the May 2026 change, so structure and licence come before price.
• Large budgets: hotels in the 101-room tier and above, on HGB land held by a PT PMA, usually with a branded operator. Financing and structure matter as much as the price; see hotel acquisition financing for foreign buyers and hotel management agreements, leases and franchises explained.

Checks before you pay a deposit

• The land certificate: title type, holder, remaining years and any encumbrance.
• Zoning on the spatial-plan maps, and the building and occupancy permits for the structure as built.
• The business registration number and activity code, and whether they match the number of rooms actually sold.
• Tax filings, staff contracts and any pending disputes of the operating company.
• Whether the licence belongs to the company you are buying or to the land owner.

FAQ

Can a foreigner own a hotel in Bali? Not the land as an individual. A foreign-owned PT PMA can hold a commercial title for a hotel, and since May 2026 new registrations for small hotels in Bali are closed, while the larger tiers remain open.

Is Hak Pakai enough for a hotel? Summaries describe it as a residential, non-commercial right, so it is not the title for a hotel.

Does buying a hotel give a residence permit? We have not verified any such right and make no promise; immigration rules are separate from ownership.

How long is a hotel land title? On paper up to 80 years in total for HGB, in steps; the lease term is whatever the contract says.

How we help

We check, compare and negotiate: the land title, the licence, the structure and the accounts. We do not guarantee income or occupancy, and we do not hold a particular hotel for you. You can see hotels in our catalogue and the Indonesia page to see what the market offers.

This article is informational only and is not legal, tax or investment advice. Figures are indicative, come from law-firm summaries, press and consultants, and change over time; confirm the current rules with an Indonesian notary and lawyer before you buy.