Legal Protocols

Ownership Structures

Foreigners cannot own land Freehold (Hak Milik) in their personal name. However, there are two extremely secure ways to invest.

Most Common

A long-term lease, typically 25 or 30 years, with a guaranteed option to extend. You own the building, but lease the land.

Corporate Structure

"Right to Build" (Hak Guna Bangunan). You create a foreign-owned company (PT PMA) which holds the title.

Before buying, checking the ITR (Informasi Tata Ruang) is critical. Building in the wrong zone leads to demolition.

Yellow Zone (Perumahan)

Residential zone. You can build villas for living or rentals (with Pondok Wisata license). This is what we target.

Pink/Red Zone (Pariwisata)

Tourism/Commercial zone. Allows for hotels, restaurants, and larger commercial villas. Highly valuable.

Green Zone (Pertanian)

Agricultural land / Green Belt. Strictly NO building allowed. Many cheap lands online are green zone scams.

Transparency is key. Here is what you need to budget for beyond the property price.

Notary Fee Drafting deeds, checking certificates, and finalizing the transaction. 1%

Lease Tax Income tax (PPH) is usually paid by the seller (10-20%), but sometimes negotiated. 10%

BPHTB Land acquisition tax. Only applies if buying Freehold/HGB via PT PMA. Not for Leasehold. 5%

We do not present a property to you until it passes our 15-point check. This includes:

Certificate Verification: Is the BPN certificate original and not in a bank collateral?
Access Rights: Is the road to the property public or privately owned? (Crucial!)
Zoning Check: Confirmation with the local Dinas Tata Ruang.
Construction License (PBG): Does the existing building have a permit?
Soil Test: Is the land stable for building (especially on cliffs/rice fields)?

Don't guess. Schedule a free 20-minute consultation to clarify your ownership options.

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