In 2025, property ownership in Bali for foreigners is undergoing a positive transformation. Recent changes in Indonesian regulations are making it significantly easier for international investors to buy and manage real estate on the island. Key updates include longer lease terms, simplified legal processes, and more transparent ownership options. These reforms come at a time when Bali’s real estate market is experiencing strong demand, with buyers looking for legal, low-risk ways to invest in villas, land, and commercial properties.
Leasehold Terms Extended Up to 80 Years
One of the most notable changes for foreign buyers is the ability to enter into leasehold agreements of up to 80 years—typically structured as 30 years with two extensions of 25 years each. This offers long-term security and reduces concerns about expiring leases or future renewals. Many developers are already adopting this model, making leasehold properties more attractive and competitive in Bali’s growing property market.
Easier Setup for PT PMA Companies
Foreign investors looking for more control or the ability to run a property-based business can now more easily establish a PT PMA (Foreign-Owned Company). Recent reforms have streamlined the incorporation process, cutting down on paperwork and approval times. A PT PMA allows foreign individuals to hold the Right to Build (Hak Guna Bangunan) and Right to Use (Hak Pakai) titles, enabling legal property ownership under a registered business—ideal for villas, resorts, or rental operations.
Passport-Only Requirement Simplifies Purchases
In a major shift, foreigners can now legally purchase property in Indonesia using just a valid passport—without needing an Indonesian stay permit (ITAS or ITAP). This simplification reduces the legal barrier for offshore investors and second-home buyers looking to acquire property in Bali. It’s an especially welcome update for retirees, remote workers, and investors seeking a stress-free purchase process.
Safer Alternatives to Nominee Arrangements
Previously, some foreigners resorted to nominee structures—buying land through an Indonesian citizen to bypass restrictions. These setups are now being actively discouraged by the government, which is promoting legitimate and transparent alternatives. With clearer leasehold rights and stronger PT PMA protections, foreign investors now have safer, legal options that provide long-term stability and ownership confidence.
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