Reference documents consulted on 7 September 2026. This guide presents families of solutions, not an exhaustive list nor personalised legal, tax or banking advice. The rules, the contracts and your situation must be checked before any commitment.
The land: distinguishing Hak Milik from leasehold
A foreign individual cannot directly hold the Hak Milik, a land title reserved in principle for Indonesian citizens. A leasehold corresponds to a rental or usage contract for a defined period. Check the owner, the underlying title, the construction or subletting rights, the assignment and the end-of-term conditions. An announced renewal must be analysed separately from the right already acquired. We rule out the use of a nominee intended to circumvent the restrictions.
Source: Indonesia · Agrarian Law No. 5 of 1960, articles 21, 26 and 44–45
Hak Pakai: a route subject to conditions
The Hak Pakai is a regulated right of use, distinct from a simple lease and from the Hak Milik. A foreigner’s access to housing depends in particular on immigration documents, the property and the regulatory limits on price, floor area, number and use. A notary or local lawyer must confirm the precise eligibility and the registered title. A listing that says ‘ownership’ should not be read as perpetual ownership of the land or as permission for holiday letting.
Source: Indonesia · Regulation No. 18 of 2021, articles 34–37 and 69–73
PT PMA and HGB right: a business project
A PT PMA is an Indonesian company with foreign investment. An eligible Indonesian company may hold a Hak Guna Bangunan (HGB), a time-limited right to build. This does not turn its foreign partners into personal owners of the land. The PT PMA involves an admissible activity, investment and capital requirements, authorisations and operating obligations. The thresholds depend on the framework applicable to the activity: they must be validated before setting up the company.
Sources: Indonesia · Regulation No. 18 of 2021, articles 34–37 and 69–73 · BKPM · Setting up and authorisations for a PT PMA
Financing from France
The options to compare are the available deposit, documented family support and a loan accepted by a French bank. Security over your assets in France or a pledge may be considered depending on your situation. The lender must accept the use of the funds and the Indonesian right being financed. Our starting scenario keeps a cash reserve and tests repayment without relying on constant rental occupancy. A loan application remains separate from reserving a unit in the development.
Sources: Ministry of the Economy · Understanding property loans · Service Public · Declaration of loans between individuals
Indonesian bank and developer payments
Do not assume that a local property loan will be available to a non-resident French buyer: the standard KPR published by Bank Mandiri requires, for example, Indonesian nationality and residence in Indonesia. This does not describe every banking offer; any other proposal must be the subject of a written agreement. If a development offers a payment schedule, have the drawdowns, the protection of deposits, the delays and the termination reviewed before paying.
Living, letting and operating: specifying the model
A personal residence and an accommodation business are not prepared in the same way. Our checklist includes zoning, construction and use authorisations, business licences, insurance, the management contract and the recipient of the revenue. Setting up a PT PMA alone does not replace the required authorisations. If you are offered shares rather than a direct property right, also request the accounts, debts, directors’ powers and exit arrangements.
Taxation and transfer of income
Your tax adviser must identify what you actually receive: personal rental income, operating profit, dividends or interest paid by a company. The France–Indonesia tax treaty and your tax residence then determine the French treatment and the possible elimination of double taxation. Keep contracts, payment statements and proof of local tax. We do not apply a universal net rate to a villa or a PT PMA.
Sources: DGFiP · Consolidated France–Indonesia tax treaty · DGFiP · Taxation of foreign-source income
What we prepare with you for Bali
We organise the full budget, the payment schedule and the comparison between the rights offered. Your list of questions covers the lease or title, the authorisations, the management charges, the personal use and the exit. The independent lawyer checks the rights and the contract; the tax adviser analyses the flows; the bank decides on the financing. Our simulations keep the remaining duration of the right as an essential point, without valuing an uncertain renewal as already acquired.
Your questions
A few pointers to move forward.
Can I buy the land in my own name in Bali?
A foreigner does not directly hold the Hak Milik. Depending on the project and the eligibility conditions, one may consider a lease, a Hak Pakai or a company structure with a suitable right. These routes do not confer the same rights.
Is a PT PMA mandatory for every villa?
No: the need depends on the activity, the contract and the right acquired. Its creation must correspond to a genuine project and comply with the investment and operating conditions. It is not a mere administrative wrapper for a personal purchase.
Does payment over several years protect my funds?
Staggering spreads out the outflows of money. Protection depends on the contracts, guarantees and payment mechanisms actually put in place. You must also finance the balance if the expected refinancing or rental income does not materialise.