Under Indonesian law, foreigners are not permitted to have real estate / property in Indonesia.

However, foreign individuals can legally acquire real estate / property in Indonesia and enjoy full beneficial rights.

Buyers should seek legal advice when securing property in Bali with the following options available:

1. Enter into a legal arrangement with an Indonesian nominee, either an individual or PT company, whereby he/she/corporation holds title to the property / real estate. Complete a power of attorney, handing over full rights from the Indonesian entity to the foreign investor.

2. Make a leasehold investment in the property, which can be up to 25 years. Partnerships with Indonesian citizens are not required in leasehold transactions. This method offers complete protection to the foreigner during the term of the lease. However, once the lease term has expired the agreement must be extended or the property / real estate reverts to the Owner.

3. Form a foreign investment company (PMA). Here the foreigner can 100 per cent own the company and the title of the property / real estate will be in the company name. However, in this case, the title only lasts for 20 or 30 years as PMA companies have to re-apply to the Indonesian Government to extend their license.

Source: LP Luxury Properties

For more information visit:

www.press.balilandexplorer.com