Updated guide covers the closed company route, the provincial nominee ban and new limits on currency conversion
BALI, Indonesia, November 12, 2026 — Horizon Estate, a real estate agency in Bali, has published an updated guide for foreigners buying property on the island. The guide reflects rule changes introduced in 2026 that affect how foreign buyers can hold property, how villas can be rented out and how money moves after a sale.
What Foreigners Can and Cannot Own
Freehold title, known as Hak Milik, is reserved for Indonesian citizens under Article 21 of the 1960 Basic Agrarian Law. Foreigners can instead hold a property for a fixed term, through one of three routes.
A lease (Hak Sewa) from the landowner, usually 25 to 30 years by market practice. A right of use (Hak Pakai) registered in the buyer’s own name, available in Bali for landed houses from 5 billion rupiah, about $280,000. Or a right to build (HGB) held through a foreign-owned Indonesian company, known as a PT PMA.
Four Changes Buyers Should Know About in 2026
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The company route has narrowed. Since May, Indonesia’s licensing system (OSS) has refused new foreign-owned company applications in Bali for lower-risk business codes, including real estate (KBLI 68111). In July, Bali Gov. Wayan Koster announced a list of 18 closed classifications that includes real estate. Licenses issued before the closure remain valid. The authorities have not said whether the restriction is temporary.
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Nominee deals are banned at the provincial level. Bali Provincial Regulation 4 of 2026 prohibits transferring land ownership through nominees and acting as an intermediary for such deals.
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Rental licensing is enforced through booking platforms. The Tourism Ministry gave listed properties until March 31 to be licensed and began delisting unlicensed operators Aug. 1. Owning a villa does not by itself grant the right to rent it to tourists.
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Currency conversion is tighter. From July 1, Bank Indonesia allows individuals to buy up to $10,000 a month against the rupiah without supporting documents. Larger conversions, such as sale proceeds, now require paperwork.
“Many buyers still arrive thinking leasehold, Hak Pakai and the company route are three equal options. In 2026 they are not,” said Ratna, Sales Manager at Horizon Estate. “We also still see villas offered to foreigners as freehold with an Indonesian name on the certificate. That is a nominee arrangement, and the law treats the person on the certificate as the owner. Which route fits depends on the budget and the visa, and on whether the villa will be rented out, since that side is now checked through the booking platforms.”
What to Check Before Paying a Deposit
Horizon Estate advises buyers to check:
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The plot’s zoning extract (ITR), to confirm the intended use is allowed and the land is outside protected rice-field mapping
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A certificate check at the land office (BPN), covering the owner’s name, boundaries and any mortgage or dispute
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The building approval (PBG) and certificate of function (SLF), matching how the property will be used
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For leases, the extension clause and how its price is set
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Who pays the 10% final income tax on lease payments
The full guide for foreign buyers covers each ownership option and the taxes due at purchase, and walks through a transaction step by step.
The information is current as of October 2026. Buyers should consult a licensed notary or lawyer before any purchase.
About Horizon Estate
Horizon Estate is a Bali real estate agency offering villas, land, townhouses, apartments and penthouses in areas including Canggu, Pererenan, Seminyak, Uluwatu, Sanur and Ubud. The team works with buyers in English, Russian and Bahasa Indonesia.
Media contact
Ratna, Sales Manager, Horizon Estate
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