Ownership Structures for Foreign Buyers

A practical look at the PT PMA company route, Hak Pakai and HGB titles, escrow, and the due-diligence steps that protect international capital when buying in Bali.

Beyond a simple lease, most serious investors in Bali hold property through a registered title or a company. Each structure has a different cost, timeline, and risk profile. This guide explains the main routes and the safeguards that separate a sound purchase from an exposed one.

The PT PMA company

A PT PMA (Perseroan Terbatas Penanaman Modal Asing) is a foreign-owned Indonesian limited company. It can be 100% foreign-owned in most open business sectors, and it can hold land under Hak Guna Bangunan or Hak Pakai — letting foreign investors control property and legally operate a rental business.

Capital requirements were eased in 2025. Under BKPM Regulation 5/2025 (effective October 2025), the minimum paid-up capital was reduced from IDR 10 billion to IDR 2.5 billion (in the order of USD 150,000). The total investment plan is a separate, unchanged threshold: it generally remains above IDR 10 billion per five-digit business classification (KBLI) per project location, excluding land and buildings. The two figures are distinct — the lower paid-up capital did not reduce the overall investment requirement.

Hak Guna Bangunan (Right to Build)

HGB grants the right to construct and own buildings on land for a defined term. Under PP 18/2021, HGB over state or HPL land runs an initial 30 years, extendable by up to 20 and renewable for a further 30 — up to roughly 80 years in total, the same schedule as Hak Pakai. It is the typical title for a PT PMA holding a villa or development. These are statutory maximums, and each renewal is a fresh grant rather than automatic.

Hak Pakai (Right to Use)

Hak Pakai can be held by a residency-holding foreign individual or by a PT PMA. Under PP 18/2021 the structure runs an initial 30 years, renewable 20, extendable a further 30 — up to roughly 80 years. These are statutory maximums, and the final renewal is a fresh grant rather than an automatic continuation. As a registered title it offers strong security for a long-horizon hold.

Escrow and staged payments

For off-plan and under-construction purchases, payments should be staged against verified construction milestones and, where possible, processed through escrow rather than paid directly to a developer in a lump sum. This aligns your money with delivery and is a core protection against developer non-performance.

Due diligence that protects your capital

• Verify the land certificate (sertifikat) and zoning with an independent notary (PPAT) — never rely solely on the seller’s lawyer.
• Confirm the developer’s track record and that building permits (PBG, formerly IMB) are in place before committing.
• Check that the land’s zoning permits your intended use (residential, tourism/commercial) — this affects both legality and resale.
• Use escrow and milestone-linked payments for any off-plan purchase.
• Budget for transaction taxes and fees on top of the headline price (see our investment-returns guide).

The right structure is the one that matches your purpose, your residency, and your appetite for administration. At Axora, every purchase is guided through compliant ownership structuring with independent legal review and secure escrow processing, so international buyers can invest with the same confidence they would at home.