How a foreigner can buy land in Indonesia

1. Leasehold (Hak Sewa)

A long-term lease registered with a notary, typically 25–30 years with an extension option. The simplest route for a private villa or a first investment.

2. PT PMA with HGB title

A foreign-owned Indonesian company can hold land under Hak Guna Bangunan (right to build): up to 30 years, extendable by 20 and renewable by 30. Suitable for rental villas, hotels and development.

3. Hak Pakai (right to use)

Available to foreigners with a residence permit for a residential property, and to PT PMA companies. Terms are similar to HGB.

Islands and coastal land

Small islands have a special regime: foreign investment needs a permit from the Ministry of Marine Affairs and Fisheries, part of the island remains public, and the project must follow the coastal zoning plan. We prepare this process together with licensed consultants.

The deal step by step

• Site visit, drone footage and preliminary check of the certificate
• Due diligence: BPN certificate check, zoning (RDTR / KKPR), access and boundaries
• Agreement on price and structure, deposit under a preliminary agreement (PPJB)
• Signing the deed (AJB) or lease agreement with a notary / PPAT
• Payment of taxes and registration of the title in your name or your company's name

Taxes and costs (typical)

• Buyer: BPHTB acquisition tax — 5% of the transaction value (minus a small allowance)
• Seller: final income tax — 2.5%
• Notary / PPAT: usually about 1%

This page is general information, not legal advice. Each deal is reviewed individually with a notary.