How to Invest in Bali as a Foreigner: A Step-by-Step Overview

To invest in Bali as a foreigner, you choose a legal route before you choose a property: a registered leasehold, a Hak Pakai title, or a PT PMA (foreign-owned company) that can hold HGB land rights and run a licensed business. Freehold (Hak Milik) is reserved for Indonesian citizens, so the structure you pick decides what you can buy, rent out or operate.

Most buying guides start with finding a villa. That order is the reason many foreign investors end up with a nominee arrangement or a licence that does not match how they planned to use the property.

This guide sets out seven steps in the order they should happen, from deciding what kind of investment you want to planning your exit. Each step links to a detailed explanation, so you can go deeper where your situation needs it.

Step 1: Decide what kind of Bali investment you want

Your goal decides your structure. A villa you live in, a villa you rent to tourists and a stake in a hotel carry different legal requirements, so settle the goal first.

The fourth route is often overlooked in villa-focused guides. Here a licensed developer handles the company, land rights and permits, and an international hotel operator runs the property under a Hotel Management Agreement (HMA). CROSS Bali Uluwatu follows this model, with PT The Cube Group as the licensed developer and SONO Hotels & Resorts Asia, part of SONO Trinity Group, as the hotel operator.

According to Fenty S. Prawiraatmadja, Marketing Director at PT The CUBE Group Bali, the development of CROSS Bali Uluwatu reflects the growing opportunity to connect Bali’s hospitality market with international travel networks and strategic investment.

“CROSS Bali Uluwatu is being developed as a 123-key, internationally branded, upper-upscale hotel along Uluwatu’s coastline. With development permits secured, construction underway, and a long-term Hotel Management Agreement in place with SONO Hotels & Resorts Asia, part of SONO Trinity Group, the project is progressing beyond the planning stage toward its next phase of development.

“SONO Trinity Group’s presence across hospitality, aviation, and leisure offers an interesting perspective on how travel and accommodation can work together. Its integrated travel ecosystem includes Trinity Airways, which operates daily direct flights connecting South Korea with Bali. CROSS Bali Uluwatu is also listed as a preferred partner of Flight Centre Travel Group, supporting its connection to international travel distribution networks.

“For us, this is about building a hotel with a clear operating structure and strong international connections from the outset. As construction progresses, we are opening discussions with strategic capital partners who recognise the long-term potential of Uluwatu and are interested in participating in the next stage of the project.”

Step 2: Choose a legal structure foreigners can use

Foreigners cannot hold Hak Milik (freehold). Under Indonesia’s Basic Agrarian Law, freehold is limited to Indonesian citizens, which leaves three legal routes for foreign investors in Bali.

The terms for Hak Pakai and HGB come from Government Regulation 18 of 2021 (Articles 37 and 52). The same regulation limits foreigners’ residential property to people holding immigration documents and sets restrictions such as a minimum price, so Hak Pakai suits investors who plan to live in Bali rather than run a rental business. For a side-by-side explanation, read our guide to Hak Pakai vs HGB, and for the full ownership picture, see what foreigners can legally own in Bali.

Avoid nominee arrangements. A nominee setup puts land in an Indonesian citizen’s name while a foreigner provides the money. It gives you no enforceable ownership:

• The Basic Agrarian Law (Article 26(2)) voids any transfer that hands freehold to a foreigner, directly or indirectly.
• Investment Law 25 of 2007 (Article 33) voids agreements that state company shares are held on behalf of someone else.
• Bali enacted Regional Regulation 4 of 2026 in February 2026, which, as reported, explicitly prohibits nominee land transfers on the island.

Step 3: Check eligibility and capital requirements for foreign investment

Before you set up anything, confirm that your business activity is open to foreign capital and that you can meet the capital threshold.

Indonesia’s Positive Investment List (Presidential Regulation 10 of 2021, amended by Presidential Regulation 49 of 2021) opens starred hotels to 100% foreign ownership. Other accommodation types and business lines carry different rules, so check your exact activity code (KBLI) first. Under KBLI 2025 (BPS Regulation 7 of 2025), hotel codes are split by star rating, from 55101 to 55106.

The capital rules changed in October 2025. Under BKPM Regulation 5 of 2025, as summarised by Withers:

• The minimum investment value stays at IDR 10 billion per KBLI.
• The minimum paid-up capital fell from IDR 10 billion to IDR 2.5 billion, which must be deposited in cash.
• For accommodation businesses, land and building costs count toward the IDR 10 billion investment value.

Many guides still quote IDR 10 billion as the paid-up capital, which reflects the rules before October 2025.

Hotels in Bali face one more filter. Since 2026, Bali has restricted new PT PMA registrations for lower-tier hotels, and the risk classification depends on three factors together: number of guest rooms, number of employees and building size. Our article on the 2026 PT PMA hotel rules explains the tiers in detail.

Step 4: Set up a PT PMA and register in OSS

If your route needs a company, the setup runs through a notary, the Ministry of Law and Indonesia’s risk-based licensing system, OSS RBA.

1. Prepare the deed of establishment with an Indonesian notary, including shareholders, directors, commissioners and capital structure.

2. Obtain legal entity approval from the Ministry of Law.

3. Register in OSS to receive your Business Identification Number (NIB), choosing the correct KBLI 2025 code.

4. Secure risk-based licences for your activity. Higher-risk activities such as hotels need additional permits and verification beyond the NIB.

5. Register for tax and open a corporate bank account to deposit the paid-up capital.

6. Report regularly through the investment activity report (LKPM), which every PT PMA must file after it starts operating.

Choosing the wrong KBLI code at this stage is a common and costly mistake, because your licences, land use and future expansion all follow from it.

Step 5: Run due diligence before signing anything

Due diligence confirms that the land, the building and the seller are what they claim to be. Check at least these four things:

• Land certificate, verified directly at the National Land Agency (BPN) office, including any mortgages or disputes.
• Zoning under the regional spatial plan (RTRW), confirming that tourism or commercial use is allowed on the plot.
• Building approvals, meaning the building permit (PBG) and certificate of worthiness (SLF).
• Seller authority, confirming that the person signing has the right to sell or lease.

Our full due diligence checklist covers each item in depth, and our guide to PBG, SLF and AMDAL explains the building permit process.

Step 6: Close the deal and pay the right taxes

A land transfer is signed before a land deed official (PPAT), while a lease is usually notarised. Both sides pay tax when the transaction closes.

BPHTB is calculated on the transaction value or the official property value (NJOP), whichever is higher, minus a regional tax-free allowance, as Hukumonline explains. Budget for notary fees on top of these taxes.

Step 7: Plan operations, residency and your exit

Three decisions shape your investment after the deal closes.

Who runs the property. You can manage it yourself through your PT PMA, hire a local management company, or invest in a project where an international operator runs the hotel under an HMA. An operator brings brand standards, distribution and staff, in exchange for management fees.

Residency. A PT PMA can sponsor its foreign shareholders for an Investor KITAS. Immigration sets a minimum shareholding for this permit, so confirm the current threshold with the Directorate General of Immigration before you structure your shareholding.

Exit. A PT PMA can be sold through a share transfer, which keeps licences inside the company, or through an asset sale. A leasehold ends when its term runs out unless you have negotiated an extension.

Your first move as a foreign investor in Bali

Learning how to invest in Bali as a foreigner comes down to sequence: goal, structure, eligibility, company setup, due diligence, closing and operations. Getting the first two steps right protects you from the most expensive mistakes, including nominee setups and licences that do not match your plans.

If you want exposure to Bali’s hotel market without setting up a company or running a hotel yourself, look at an operator-managed project. CROSS Bali Uluwatu combines a licensed developer, PT The Cube Group, with an international operator, SONO Hotels & Resorts Asia, part of SONO Trinity Group. You can review the hotel investment in Uluwatu and compare it with other hotel ownership structures in Bali.

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