Can Australians Buy Property in Bali? Complete 2026 Legal Guide

The Short Answer

Australians cannot own land freehold in Indonesia. This is a constitutional restriction under the 1960 Basic Agrarian Law (UUPA). However, there are three legal pathways for Australians to own and control property in Bali — each with different costs, risks, and benefits.

Option 1: Leasehold (Hak Sewa)

The most common and straightforward option for foreign buyers.

How it works:

• You sign a lease agreement (Akta Sewa Menyewa) with the Indonesian landowner
• The agreement is notarised but not registered in the land registry
• You own the building and improvements; the land remains with the owner
• Extensions are typically negotiated upfront (e.g., 25+25 years)

Advantages:

• Simple and affordable process
• No company setup required
• Can be done remotely with power of attorney
• Transferable/sellable to other foreigners

Limitations:

• Not registered in land registry (BPN) — relies on notarised contract
• Finite duration (though extensions are standard)
• Dependent on relationship with landowner

Option 2: PT PMA (Foreign-Owned Company)

The strongest legal structure for serious investors.

How it works:

• Establish a PT PMA (Penanaman Modal Asing) — Indonesian company with foreign ownership
• The company acquires Hak Pakai (Right to Use) title, registered at BPN
• You own the company, the company owns the property right
• Minimum investment capital: IDR 10 billion (~$170K AUD)

Advantages:

• Title registered in land registry (strongest legal protection)
• Up to 70 years (30+20+20) of rights
• Can hold multiple properties
• Can operate commercial activities (rental, hospitality)
• Full corporate protection

Limitations:

• Higher setup cost and complexity
• Annual reporting and compliance requirements
• Minimum capital requirement ($170K AUD)
• Need at least one local director

Option 3: Hak Pakai (Personal Right to Use)

Foreigners with a valid KITAS (temporary stay permit) or KITAP (permanent stay permit) can hold Hak Pakai personally — without setting up a company. This right is registered at BPN and provides strong legal protection.

However, this option requires you to maintain residency status in Indonesia. If your KITAS/KITAP expires and isn't renewed, you must transfer or dispose of the property within one year.

Leasehold vs PT PMA: Which is Right for You?

Required Documents

At Horizon Bali Property, we only list properties with a complete document package. This is non-negotiable — it's a requirement for notarisation. Here's what must be verified:

1. SHM (Sertifikat Hak Milik) — Land certificate, all pages, colour scan
2. Lease Agreement (Akta Sewa Menyewa) — Master lease + all subleases
3. PBB (Pajak Bumi dan Bangunan) — Land tax receipt for current year
4. KTP — Landowner's Indonesian ID
5. Passport — Lessor/seller's passport copy
6. Company documents (if PT) — Akta Pendirian, SK-Kemenkumham, NIB
7. PBG/IMB — Building permit (PBG after 2018, IMB before)
8. ITR — Zoning information for the plot

Download our full Due Diligence Checklist →

Our Legal Partner

We work exclusively with Sky Realty Bali Legal Department for all legal matters. Their services include:

• Due diligence: IDR 15,000,000 (~$950 AUD), 14 working days
• Legal support: 1.5% of transaction value (min. IDR 15M)
• PT PMA company setup: IDR 25,000,000 (~$1,600 AUD), 14 days
• Building permits (PBG/SLF): ~3 months
• KITAS visa services: from IDR 8,500,000