How to buy
Your Bali Property Buying Guide
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Types of property Foreign Nationals Are Able to Own
New build or existing dwelling (Rumah Tapak)
- Right to use (Hak Pakai) granted over the state land or
- Right to use (Hak Pakai) granted over freehold right (Hak Milik) land, based on Grant of Utilization Rights over tge Freehold Rights Land Deed or
- Right to use (Hak Pakai) granted over the Right to Manage Land (Hak Pengelolaan) based on land utilisation agreement
Apartments/Condominiums/Units (Satuan Rumah Susun)
- Built on plot of land having Right to Use (Hak Pakai) or Right to Build (Hak Guna Bangunan title, which is granted over the State Land or
- Built or plot of land having Right to Use (Hak Pakai) or Right to Build (Hak Guna Bangunan) title, which is granted over the Right to Use (Hak Pakai) Land or
- Built on plot of land having Right to Use (Hak Pakai) or Right to Build (Hak Guna Bangunan) title, which is granted over the Freehold Right (Hak Milik) Land
Right and Requirements
Previously foreign nationals must have either a permanent or temporary stay permit in order to acquire property in Indonesia. However, they may now do so based on a particular visa, passport or stay permit. The properties owned by foreign nationals may also be inherited to a valid heir, collateralised as s loan security and be transferred to other parties,
Furthermore, there is a minimum price requirement for the landed houses/condominiums or units that maybe owned by foreign nationals. The minimum prices vary by province, with DKI Jakarta, Baten, Bali and several other provinces having a minimum price of Rp5,000,000,000 (five billion Rupiah) New build or existing dwellings (Rumah Tapak) and Rp3,000,000,000 (three billion Rupiah for Apartments/Condominiums/Units (Satuan Rumah Susun).
Ownership Limitations
Despite the recent changes the Indonesian Government does still impose certain restrictions over the ownership of property owned by foreign nationals.
For New build or existing dwelling (Rumah Tapak), foreign nationals are subjected to the following restrictions.
- House that maybe owned are only those categorised as luxury houses in accordance with existing regulations
- Each person/family is only allowed 1 (one) plot of, and/or
- The maximum area of land is 2,000ms (two thousand meters square)
If there are positive economic impacts to be had from the ownership of New build or existing dwelling (Rumah Tapak) by foreign nationals, such persons maybe be allocated more than 1 (one) plot of land or exceed the 2000m2 (two thousand meters square) area, subject to the Ministers approval. Currently, there are no further guidelines on the parameters of this exemption.
Long and Short term Leasing of Land, New build or existing dwelling
Long-term leasing is very common in Bali. Properties available for long-term leases include, but are not limited to, villas/houses, land (including green, yellow, and red-zoned), and apartments/condominiums.
Lease terms can vary from 1 day to 99 years, depending on the purpose of the lease and the terms negotiated with the property owner. Most long-term leases range between 25 and 30 years, with a guaranteed lease extension clause entered into the lease agreement. Leases are allowed to be sold (sublet) as long as both lessee and lessor are in agreement, and it is stated in the lease document.
Effectively, when entering into a lease agreement, you take possession of the property (regardless of the type of property) and become responsible for all obligations and privileges that come with it.
In the event that the lease agreement does not have an agreed extension clause or it was not negotiated at the time of the initial lease, then the property will be returned to the landlord after the agreed period comes to an end. Please note that with long-term leases, everything is negotiable prior to committing to the lease, including the payment terms.
With all leasing, we at MDT Property Group Bali strongly recommend that all lessees confirm that the agent they are dealing with is a member of AREBI (the governing body for real estate in Indonesia) and request a copy of their membership number or photo proof that they are a qualified real estate broker. Secondly, we recommend that you confirm that the company you are working with has a fixed office and can confirm that they are a legitimate business by showing you their NIB (Normor Induk Berusaha) or PT (Perseroan Terbatas) numbers. These are managed by the Ministry of Investment/Indonesia Investment Coordinating Board (BKPM). Sadly, in Bali, there are many unscrupulous individuals who claim to be real estate agents or freelance brokers who operate solely through the anonymity of social media. These individuals are not qualified to sell or lease properties and are well-known for operating scams and fraudulent businesses. These people are almost impossible to track down should something go wrong.
*MDT Property Group Bali does not assume any responsibility for the accuracy or completeness of the information or content provided. We highly advise all parties to seek independent legal advice before making any property purchase or lease transactions in Indonesia.