As Bali continues to shine as a hotspot for international property investors, interest in land for sale in Bali is reaching new heights in 2025. With strong tourism recovery, rising digital nomad culture, and attractive rental yields, the island presents high-return potential for those looking to invest in tropical land. But for foreigners, buying land in Indonesia comes with specific legal and practical considerations.
In this article, we walk you through the key facts every foreign investor should know before entering the Indonesia land investment market — from ownership rules and legal structures to practical tips that help avoid costly mistakes.
And if you’re new to the topic, we recommend starting with our foundational article: Why Bali Remains a Top Destination for Land Investment in 2025.
Can Foreigners Own Land in Bali?
Foreigners cannot directly own freehold land in Indonesia (Hak Milik). This is the most complete form of ownership and is reserved for Indonesian citizens. However, foreigners can still legally invest in property and benefit from land use through alternative ownership structures.
The two most common legal options for foreigners are:
1. Leasehold Land (Hak Sewa)
This allows foreigners to lease land for a fixed term — typically 25–30 years, with options to extend. It’s a popular and secure choice for residential villas, holiday rentals, and small developments.
2. Foreign-Owned Company (PT PMA)
By setting up a PT PMA (foreign investment company), you can acquire land under Hak Guna Bangunan (Right to Build) or Hak Pakai (Right to Use). This structure is ideal for commercial projects or long-term investors.
Avoid nominee agreements (where an Indonesian citizen holds the land for you). These arrangements are legally risky and not recognized under Indonesian law — even if you have a private contract.
What to Check Before You Buy
Understanding the legal landscape is crucial, but real estate in Bali also comes with logistical and regulatory steps that can make or break your investment.
Here’s what smart investors always verify before buying land:
- Land certificate (Sertifikat Hak Milik / Hak Sewa / HGB) – Ensure it’s valid, up to date, and matches the land boundaries.
- Zoning (ITR / RTRW) – Not all land can be developed. Confirm the land is zoned for your intended use (residential, tourism, agriculture, etc.).
- Access – Make sure the land has legal access via a public or private road.
- Ownership history – Check that the land isn’t disputed, jointly owned, or under legal claim.
- Infrastructure availability – Is electricity, water, and internet accessible?
Working with a local notary (PPAT), legal advisor, and reputable agent can protect you from legal loopholes or misrepresentation. A proper step-by-step land buying process ensures all documents are verified, and that your investment is secure.
Choosing the Right Ownership Path
If your goal is to buy a single villa or hold land passively, leasehold land in Bali is often the easiest and most cost-effective solution. For example:
- 25-year lease on 500 sqm land in Canggu: ± USD 150,000
- ROI via rental: 8–12% annually, depending on location and design
For more ambitious plans — such as developing a resort, running a coworking space, or flipping properties — forming a PT PMA gives you corporate rights, long-term security, and access to bank loans (in some cases).
This model is particularly useful for:
- Multi-unit or multi-property investments
- Commercial use (hotels, restaurants, retreats)
- Joint ventures with international partners
We explore the differences in more detail in our upcoming article: Leasehold vs Freehold Land in Indonesia: What Investors Need to Know
Is Land Investment Safe in Indonesia?
This is one of the most frequent questions asked by new investors — and a fair one. With the right guidance, buying land in Indonesia as a foreigner is safe and legally viable. In fact, many international investors have successfully built long-term property portfolios here.
However, risks exist — especially if you:
- Skip legal checks
- Use nominee owners
- Ignore zoning regulations
- Buy uncertified or disputed land
Pro Tip: Always work with professionals who understand foreign ownership rules in Indonesia and can guide you through the local legal process in English (or your native language).
Why Foreigners Still Invest in Bali
Despite the legal hurdles, Bali continues to outperform many Southeast Asian real estate markets. Consider these 2025 figures:
- 6–12% average land value growth in areas like Uluwatu and Berawa
- Over 80% villa occupancy during high season
- 1.2M monthly Google searches for “Bali property” terms
- Steady expat population: Over 75,000 long-term foreign residents
- $23.5B invested in infrastructure and tourism projects (2020–2025)
Combined with high rental yields, accessible pricing, and an expanding digital economy, Bali offers a compelling proposition for safe land investments abroad.
Final Thoughts
Buying land in Bali as a foreigner isn’t about avoiding restrictions — it’s about understanding the rules and using the available structures strategically. With options like leasehold agreements and PT PMA entities, foreigners can participate in one of Asia’s most dynamic and exciting property markets.
Whether you’re looking for beachfront land for sale, inland plots in Ubud, or a jungle escape in Tabanan, there’s a path to secure your investment — as long as you take it with care, clarity, and good legal advice.