Short version: foreigners cannot own freehold land in Indonesia. You can lease it, hold a right of use (Hak Pakai) as a resident, or buy through an Indonesian company with foreign shareholders (PT PMA). Each route has rules, costs and limits.
This guide summarises public sources. It is not legal advice. Always use a licensed notary (PPAT) and your own lawyer before you pay.
Freehold is reserved for Indonesian citizens and some state-linked domestic entities. Foreigners and foreign-owned companies (PT PMA) cannot hold it. Listings marked 'freehold/SHM' therefore need conversion to another right, or a different structure, before a foreigner can buy.
Sources: dfdl.com
Source date: 2026-04-29 (updated 2026-07)
A foreigner with residence status can hold a house on Hak Pakai for 30 years, extendable by 20 and renewable by 30 (about 80 years in total). Legal basis cited: PP 103/2015, PP 18/2021 and Permen ATR/BPN 18/2021.
Sources: raywhite.co.id, dfdl.com
Source date: 2025-07-03 / 2026-04-29
One plot per person or family, up to 2,000 m2, and the house must be classed as a luxury dwelling. Land for a resort or a large tract cannot be held this way.
Sources: thejakartapost.com, raywhite.co.id
Source date: 2023-08-14 / 2025-07-03
Kepmen ATR/BPN 1241/SK-HK.02/IX/2022 sets regional minimums: IDR 5bn for a landed house in Bali and IDR 1bn for 'other provinces', a category NTT appears to fall into.
Sources: hukumonline.com
Source date: 2023-02-08
Under the 2021 regulation a passport or visa is in principle enough to buy. A ministry official said in 2023 that regional land offices often still ask for a KITAS/KITAP. Ray White (2025) still describes a residence permit as required.
Sources: thejakartapost.com, raywhite.co.id
Source date: 2023-08-14 / 2025-07-03
A lease is a contract, not a land title, and is typically written for 25-30 years. It is available to foreign individuals and to PT PMAs. It is weaker than HGB or Hak Pakai for financing, security and resale.
Sources: dfdl.com
Source date: 2026-04-29
Several Sumba developers advertise 78-90 year leases: 80 years (Realting, A Place in the Sun), 78 years (Bali Home Immo RF4054A), 90 years for foreigners (Balicasa owner listing), and a lease running to 2106 (OLX).
Sources: realting.com, video.aplaceinthesun.com, bali-home-immo.com, balicasa-properties.com
Source date: 2026-11-07
A foreign-owned company (PT PMA) can hold Hak Guna Bangunan (HGB) for 30 years, extendable by 20 and renewable by 30. This is the main vehicle for villas and hotels. Extension depends on compliance and zoning.
Sources: dfdl.com
Source date: 2026-04-29
Issued 1 Oct 2025. Minimum paid-up capital fell from IDR 10bn to IDR 2.5bn per company, and it must stay in the company account for 12 months except for permitted uses. The total investment plan must still exceed IDR 10bn per 5-digit KBLI per location, excluding land and buildings, with some sector exceptions (e.g. food and beverage).
Sources: aoshearman.com
Source date: 2025-10-27
Putting land in an Indonesian's name on behalf of a foreigner is legally ineffective, cannot be enforced, and is high risk.
Sources: dfdl.com
Source date: 2026-04-29
Not verified in this research: customary (adat) land claims, unregistered land without SHM, and zoning (RTRW 'yellow/tourism zone') are commonly reported issues on Sumba. Several listings mention 'yellow zone' or 'green zone'. Get due diligence at the local BPN and with a PPAT before paying.
Sources: rumah123.com, sumbaestate.com
Source date: 2026-11-07