buying land in bali as a foreigner

This article guides foreigners in the process of land acquisition in Bali, helps to consider which land certificates to choose, and what to take into account if choosing the real estate, and drafting the agreements.

According to the Agrarian Law No 5/1960 the following permanent titles can be issued in relation to the real estate:

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• Hak Milik – Right of Ownership
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• Hak Guna Usaha – Right of Cultivation
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• Hak Guna Bangunan – Right to Build
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• Hak Pakai – Right to Use
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• Hak Sewa – Right to Lease
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• Hak Pengelolaan – Right of Management
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Currently, only three of these certificates can be obtained by foreigners in Bali: Hak Guna Bangunan, Hak Guna Usaha, Hak Pakai.

Land certificates that foreigners can obtain

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• Hak Guna Bangunan (HGB) – Right to Build
• HGB allows certificate holder to build on the land. This is a suitable certificate in the case of planning to construct and own buildings in Bali.

A HGB title can be issued to:

• foreign individuals with a valid temporary stay permit (KITAS)
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• foreign owned companies called PT PMA (including 100% foreign owned PT PMA)
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• local companies
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Hence, foreigners can obtain this certificate via their company. 

HGB certificate is given out for 30 years with up to 20 years extension. It may be renewed for another 30 years after the official extension period has expired.

The HGB can be sold, exchanged and mortgaged. Note that in case a PT PMA is selling land with HGB certificate to a local person, this new owner can convert it to Hak Milik. Hak Milik, in English freehold, is the highest right of ownership.