10 February 2026
Are There Land Rights That Foreign Nationals Can Own in Indonesia?
Yes, there are.
In principle, foreign nationals who reside in Indonesia may own or control property, as long as they comply with Indonesian laws and regulations.
Indonesia is home not only to Indonesian citizens, but also to a growing number of foreign nationals. In recent years, the number of foreigners living in Indonesia has increased due to globalization, modern mobility, and Indonesia’s efforts to strengthen international and multilateral cooperation.
Foreign nationals in Indonesia can generally be divided into two groups:
those who stay for a limited period of time, and those who intend to reside in Indonesia long-term.
From a legal perspective, foreign nationals are not permitted to own land under Freehold Title (Hak Milik). Instead, Indonesian law allows foreigners to obtain certain limited land and property rights, including:
Right of Use (Hak Pakai)
The right to use land or property for a specific period of time, subject to extension under applicable regulations.
Right to Lease (Hak Sewa)
The right to lease land or buildings based on a contractual agreement with the landowner.
Ownership of Strata-Title Apartment Units
Foreigners may own apartment units (satuan rumah susun) in approved developments, in accordance with prevailing regulations.
Residential Houses or Housing Units
Foreigners may own residential properties, subject to restrictions on location, land size, and type of use.
Right to Build (Hak Guna Bangunan / HGB) through a PT PMA
Foreign nationals who establish a foreign-owned company (PT PMA) under Indonesian law may obtain Building Use Rights (HGB).
This right allows the company to construct, own, and use buildings on land for business or investment purposes for a certain period of time, with the possibility of extension and renewal, as long as the company remains compliant with Indonesian investment and land regulations.
As a consequence, any land ownership rights previously held by an Indonesian citizen must be relinquished if that person later becomes a foreign national, as stipulated under Article 21 paragraph (3) of the Basic Agrarian Law (UUPA).
According to Minister of Agrarian Affairs and Spatial Planning / National Land Agency Regulation No. 18 of 2021, foreign nationals may own only one plot of land per individual or family, with a maximum land area of 2,000 square metres.
In special circumstances that provide positive economic or social benefits, foreigners may be allowed to own more than one plot or land exceeding 2,000 square metres, subject to approval from the Minister of Agrarian Affairs and Spatial Planning.
Based on these regulations, foreign nationals are strictly prohibited from owning land under Freehold Title. Any freehold land acquired by a foreign national will be reverted to state ownership, as regulated under Article 26 paragraph (2) of the Basic Agrarian Law (UUPA).
In addition, foreign nationals who establish a legal entity under Indonesian law, such as a company, may obtain Business Use Rights (HGU) and Building Use Rights (HGB), provided that all legal requirements are fulfilled.
If you are a foreign national considering property ownership in Indonesia, understanding the correct legal structure is essential. From Hak Pakai and leasehold agreements to PT PMA ownership structures, each option requires proper compliance and due diligence. Learn more about the legal process of buying property in Bali and how to structure your investment correctly by visiting our complete legal guide for buying property in Indonesia.