Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Foreign ‘Ownership’ of Land in Indonesia
Bali Hotels, Bali Villas and Bali News from
Bali Hotels
Bali Villas
Special Deals!
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Bali Update
Subscribe to our free weekly newsletter!
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
Bali Contact
Bali Discovery Tours
Jln. By Pass Ida Bagus Mantra,
Jln. Pucuk 1 No. 70X
Denpasar, Bali

+62 (0)812 3819724
+62 (0)361 464 032, +62 (0)361 471 0242

Bali Discovery

Bali News

Foreign ‘Ownership’ of Land in Indonesia

New Government Decree Issued on Foreign Land Ownership in Indonesia

Bali News: Bali, Indonesia, Foreign Land Ownership, Hak Milik, Hak Pakai. Hak Pengelohaan
Click Image to Enlarge


The Minister of Land and Spatial Planning/Chairperson of the National Land Affairs Agency (BPN) has issued Regulation No. 13 of 2016 regarding the transfer of ownership of homes for foreign residents in Indonesia.

The new regulation permits foreign residents of Indonesia to directly purchase homes in Indonesia providing the subject homes meet the following minimum price levels:

  • DKI Jakarta Rp. 10 billion
  • Banten Rp. 5 billion
  • West Java Rp. 3 billion
  • Yogyakarta Rp. 3 billion
  • East Java Rp. Rp. 5 billion
  • Bali Rp. 3 billion
  • West Nusa Tenggara Rp. 2 billion
  • North Sumatra Rp. 2 billion
  • East Kalimantan RP. 2 billion
  • South Sulawesi Rp. 2 billion
  • All other regions Rp. 1 billion
The new regulation also stipulate:
  • Foreigners purchasing an apartment or a single-family residence must hold residency status.
  • The apartment or single-family residence that can be held by a foreigner with “Hak Pakai” (Right of Use) or “Hak Pengelolaan” (Right of Management) status must, at least initially, be purchased from the Government or from a developer.
  • Hak Pakai title is valid for a maximum period of 80 years.
  • If the foreigner dies or is no longer an Indonesian resident, the land must be sold to a “qualified buyer” within one-year.
  • A property can be inherited by a family member who is a foreigner if that person holds residency in Indonesia.
  • The much-coveted “freehold” (Hak Milik) remains closed to foreigners in Indonesia.
Luxury Taxes may apply on the transaction in which a foreign resident acquires an apartment or single-family residence.

While members of the real estate industry welcomed the clarifying legislation, many are adopting a “wait and see” stance in order to obtain a better understanding of actual legal practice as it applies to foreigners involved in Indonesian property transactions.

Other real estate professionals complain that the government has taken too long to open real estate transactions to foreign buyers, announcing deregulating terms only after the market is in a state of decline.

The new regulations may also prove problematic for foreigners seeking to own land in Indonesia. Particularly challenging issues remain with the fact that Indonesian property purchasers have traditionally shown little interest in purchasing land held under “Hak Paki” title, given the expensive and time-consuming proceduresrequired  to convert “Hak Pakai” into “Hak Milik.” This fact may prejudice the saleability and purchase price of a proprery held by a foreigner under "hak pakai" title.

Also raising concerns is a provision that mandates the State can auction a land held by a foreigner if he or she is unable to sell the property within one year after their residency status ends. Many suspect that this process would result in an unfair price far below the property’s actual market value.

For a comprehensive and accurate presentation addressing foreign ownership of property in Indonesia, please read the related article below.

Related Article

Interview: Rainy Hendriany – Foreign Ownership Update

© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to


Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!

Our [Privacy Statement] explains how we handle the data you are providing.

Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!

or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Trans-national Crime Bust in Bali
Bali Police Arrest 64 Foreigners at Four Locations Involved in Cybercrime Syndicate
Bale Banjar Culture Club Shapes Up for 2018
Monthly Program of Popular Cultural Lectures Continue at Ayodya Bali Resort in Nusa Dua
Pray, Go to Prego
Sunday Brunch at Prego at The Westin Resort Nusa Dua, Bali a Fun-Filled Family Affair
Say ‘Yes’ to Nyonya
Exceptional Value at Perankan Lunch Available Every Sunday at Rumah Luwih Hotel on the IB Mantra Highway in Bali
Unlicensed to Steal
Government Cracks Shuts Down Illegal Company Selling Property to Foreigners in Petitenget, Bali
Mountainous Radiuses Radii
Controversy Brewing Over Reduction of Size of Exclusion Zone Surrounding Mount Agung Volcano
Shores in Need of Shoring
Klungkung Shoreline Under Severe Threat from Erosion
Indonesia Waives the Rules and Rule the Waives
Indonesia’s Newest Destroyer KRI I Gusti Ngurah Rai Inaugurated in Bali
Take Two Tablets, Moses!
Six Balinese Men Face Possible Legal Action for Spiritual Quest to Mount Agung’s Crater
An Annual Cycle for Cycles
600-kilometer ‘Tour de Indonesia’ Bicycle Race to Cross the Finish Line in Bali on Sunday, January 28, 2018
From Salty to Sweet
Water Board Wants Crackdown on Hotel’s Desalinating Sea Water without Required Permits
Dominion Over Earth and Heavens Above
Indonesia Serious Abut Preventing Foreign Intrusion into its Air Space
All [News]!