Buying & Selling Property in Bali

CCI has a proven track record of property consulting services, supporting expatriates with legitimate and secure land acquisitions for nearly two decades.

Bali is an ideal place to live and invest. Given its combination of beauty and life style, the island attracts those that seek business investment opportunities, or simply a better way to live. Home and business ownership is complicated because Indonesian property laws are a minefield of confusion. There is an ever-changing array of written and unwritten regulations that need continuous navigation and examination when buying & selling property in Indonesia.

Property ownership in Indonesia can be divided into three main sections; the most common being:

  1. Hak Milik (Freehold Title) – this is the most absolute form of land title in Indonesia. This land title can only be held by an Indonesian Citizens and certain domestic legal entities which have been approved by the Government.
  2. Hak Pakai (Right to Use) – Hak Pakai allows foreigners use of land and buildings on the land for residential purposes. Foreigners who are resident in Indonesia may be granted a Hak Pakai title subject to certain provisions. The length of time of the title will depend on the underlying land title. Hak Pakai over Hak Milik can be granted for 30 years; this can be extended for 20 years and then renewed for a further 30 years. Allowing a total of 80 years.
  3. Hak Guna Bangunan (Right to build) – HGB allows a company legally registered in Indonesia the right to build on the land. HGB can be granted for 30 years; this can be extended for 20 years and then renewed for a further 30 years. Allowing a total of 80 years.

As a foreigner; you have the following two legal options for Land Ownership in Bali and Indonesia:

  1. Hak Pakai – Right to use
  2. Hak Guna Bangungan - Right to build

The best option for you, and your ability to own property in Bali with the above two Titles will vary greatly on the following points:

  1. Your intention for the property – do you intend to use the property for business or residential purposes?

  2. The location of the property - each regency in Bali (and Indonesia) can have slightly different regulations in terms of zoning, ability to open a business and various other Government regulations.
  3. The size of the property – there are restrictions on this for Hak Pakai for example.
  4. The price of the property – there are minimum values for this for Hak Pakai for example.

  5. Your residence status in Indonesia.

  6. Your time and budget constraints.
  7. The current Land Title on the property.
  8. Various other constraints.

The best way for our Legal Property Consultants to offer you the best advice on property ownership in Bali and Indonesia is to understand what your needs are. Get in touch with us today to arrange a consultation.

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