Indonesia: serving expat and cross-border buyers

Bali attracts buyers who live in one country, hold a passport from another and pay from a third, and most of them want something Indonesian law does not give a foreigner: freehold land. An agency that sells to them needs to know which titles a foreigner can hold, what the buyer must show, and which structures to refuse. This briefing sets out the questions to settle before you take instructions.

Step one: which title can a foreigner hold

Indonesian law reserves full freehold, called Hak Milik, for Indonesian citizens. Broker and law-firm pages describe three main routes for foreigners:

• Hak Pakai, a right of use that a foreign individual with the required residence status can hold over a house or apartment, within limits on price and size
• a company with foreign investment, called a PT PMA, holding a building right, Hak Guna Bangunan, which sources describe as running up to 80 years with extensions
• a leasehold, Hak Sewa, usually for 25 to 30 years with options to extend, under a notarised lease

Each route has different tax, permit and exit consequences, and the right one depends on the buyer's plans. An agency is not placed to choose it, but it should know the names and tell the buyer to take advice from an Indonesian notary or lawyer before signing.

Status and price limits for Hak Pakai

The ministerial regulation of 2021 on foreign ownership of houses and apartments sets conditions: a minimum price that differs by region and by type of property, a limit of one plot, and a maximum area of 2,000 square metres for a landed house. Sources disagree on the thresholds that apply to Bali and on whether a residence permit is required. A 2026 broker source gives IDR 2 billion for Bali, a 2023 report gives much higher figures for Jakarta, and the 2023 report says regional offices still ask for a residence permit even where the rules were eased (ANN/Asianews). Do not quote a number to a client. Ask the notary, or PPAT, what the land office in the relevant regency will accept today.

What to collect from the buyer

• a valid passport, and the visa or stay permit the buyer holds in Indonesia, if any
• proof of address in the country of residence when it differs from the country of citizenship
• documents that explain the source of the money, matched to the amount
• details of the account the money will come from
• the buyer's tax details, because Indonesian tax identification may be needed for the purchase, which the notary will confirm

Screening, done lawfully

We could not confirm which anti-money-laundering duties apply to estate agents, notaries and land deed officials in Indonesia, so ask an Indonesian lawyer and write the answer into your onboarding. As good practice, screen the buyer, any beneficial owner and any third-party payer against the sanctions lists that apply to you and your bank, and keep a dated record. A buyer's nationality is not a reason to refuse the file and not a reason to skip checks. If a red flag appears, stop, take legal advice and report as the rules require. Never advise a client how to avoid a check.

Structures to refuse

The usual workaround for the freehold ban is a nominee arrangement, in which an Indonesian holds the title for a foreigner under a side agreement. Law-firm and broker pages describe these as a serious legal risk, and one source says Bali has moved to criminalise them, although we found only that source and do not rely on it. Whatever the position, an agency that sells a nominee-held villa as if it were owned exposes the buyer to a title that the buyer cannot enforce. Offer only a title the buyer holds in their own name, a lease the notary has drawn up or a company the buyer's lawyer has set up and the buyer can show a licence for.

Check the land, not only the buyer

For Bali, sources stress zoning. If land is classified as a protected or green zone, a villa cannot lawfully be built on it, and an agency that does not check the zoning risks selling a plot that cannot be used for the buyer's plan. Ask for the land certificate, the zoning confirmation, evidence that the land is free of liens and the building permit for any existing structure.

Red flags in a file

• a seller who will not show the certificate or lets only a representative sign
• a villa sold on a short lease with the promise that it can be extended later at a fixed price
• a company with no permits that is already collecting rent
• a price far below the neighbours with no explanation
• a buyer who wants the title in another person's name

What to do with this

• give every foreign buyer a one-page note of the three routes and their limits
• keep the passport, source-of-funds papers, land checks and screening record in one dated file
• refuse nominee structures and tell the buyer why
• confirm your own reporting duties with an Indonesian lawyer

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 12 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.