Invest in Bali Property Through PT PMA: Why Is It Necessary for Foreigners?

July 3, 2025

Dreaming of investing in Bali property? Here’s how to legally doing it.

As a foreigner, direct ownership of freehold land in Indonesia is restricted; however, that doesn’t mean it’s impossible to own and operate a business with property investment in Bali. With a PT PMA (Foreign-Owned Company), you can invest in Bali property and even run a business from it. Here’s everything you need to know to invest in Bali property through a PT PMA — legally and securely.

Why Foreigners Can’t Buy Property Privately in Bali

Indonesia’s law doesn’t allow foreigners to own freehold land under personal names. This restriction often leads people to risky alternatives, such as nominee agreements, which are not only unsafe but also legally weak.

Reading suggestion: Why You Need to Think Again When Investing With a Local Nominee Agreement

The legal solution is by setting up a PT PMA, which allows you to lease land under Hak Guna Bangunan (HGB), or Right to Build, for business purposes, including property development, rental, or hospitality.

Highly recommended package by expats in Bali 👍🏻

Benefits of Using PT PMA for Property Investment

By setting up a PT PMA for property investment, you will have legal control of property through Hak Guna Bangunan (HGB), which is a long-term land usage right specifically available for businesses. It also allows you to maintain full foreign ownership of the company, giving you the legal power to manage and profit from your property investments.

Not only that, you can generate rental income from your property. You’re also eligible to apply for an Investor ITAS (long-term stay permit for a Director or Commissioner of a PT PMA), to live and operate your business in Bali. Additional benefits include the ability to open a local business bank account, manage financial operations in rupiah or foreign currencies, and even purchase vehicles under the company’s name.

Always Do Everything Legally and Respectfully

Investing in Bali property through a PT PMA is not only possible, but it’s also the smartest legal way for foreigners. By following the right legal structure, you not only protect your investment but also honour the Indonesian rules and regulations. Whether you’re planning to run a property rental, set up a hospitality business, or simply want a secure long-term investment, consult Usaha Expat for thorough guidance every step of the way.

Frequently Asked Questions

Can foreigners legally own property in Bali through a PT PMA?

Yes, foreigners cannot own freehold land directly, but a PT PMA (Foreign-Owned Company) allows legal control of property via long-term lease rights (Hak Guna Bangunan), making it the safest and most legitimate option.

What are the visa options available for PT PMA owners in Bali?

As a PT PMA shareholder or director, you’re eligible for an Investor ITAS, a long-term stay permit that allows you to live in Bali without needing a separate work permit.

How much capital is needed to set up a PT PMA for property investment in Bali?

The minimum required investment plan is IDR 10 billion. However, a business consultation with Usaha Expat is highly suggested to understand more about the investment landscape and regulations in Bali.