What you can own as a foreigner
Indonesia doesn't allow foreigners to own land outright. There are four structures worth knowing, all governed by the Basic Agrarian Law of 1960.
Leasehold
The common route. You lease the land for a fixed term, usually 25 to 30 years, held directly with a passport and tourist visa, no company needed. The land reverts at expiry unless extended. Leasehold land often sits in tourism zones, which suits rentals, and it costs meaningfully less than freehold.
Freehold
Full, indefinite ownership of the land and what's built on it. Reserved for Indonesian citizens. Foreigners cannot hold it directly, so it's mostly useful as a price comparison rather than a title you can put your name on.
Right to Use
A foreigner-friendly title for a home you live in, around 30 years with extensions. The catch: it requires an existing building, so it suits a finished villa rather than bare land you intend to develop.
Right to Build
The strongest right open to foreigners. A company's name goes on the title and the asset can be mortgaged. Held through a PT PMA, a foreign-owned Indonesian company. This is the route for development and commercial property.
How a purchase works
Consultation & budget
We work out what you can spend and which ownership structure fits whether you want a home, a rental, or to develop.
Property selection
We shortlist properties that match your goals, position, and budget across the Bukit.
Due diligence
Before any money moves, our in-house legal counsel verifies the title, zoning, lease terms, and that the property is free of debts or disputes.
Escrow
Funds sit in a secure, neutral account and are only released once the agreed conditions are met.
Notary signing
A licensed notary (PPAT) formalises the transaction. By this point the real work is done, so signing is a formality.
Handover
You receive the property and, if you want it managed, Yolla Hospitality takes over from day one.
The due-diligence checklist
- The seller has the legal right to sell
- No liens or debts attached to the title
- No land-dispute litigation on the property
- Zoning permits what you intend to do
- Land size matches the certificate
- Legal, documented road access
- For bare land, a buildability check
- Lease term and extension clause reviewed
What it costs around the price
Budget roughly 10 to 15% on top of the purchase price for notary fees, taxes, legal work, and setup. If you buy through a PT PMA, the company formation sits inside that figure. Build it in from the start so it isn't a surprise at signing.
What happens at the end of a lease
The land reverts to the owner unless you extend, and extension is normal and expected. You negotiate it with the landowner, it's priced on the land alone (not your villa), and it usually adds 10 to 30 years. Start years before expiry, get an independent appraisal, and keep the relationship in good standing.