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A PT PMA (a foreign-owned limited company) can hold land in Bali as Hak Guna Bangunan (HGB, right to build). The initial term is 30 years, extendable by 20 and then 30 years, 80 years in total. Foreign individuals cannot hold Hak Milik, and a company cannot either. HGB is the title a business can hold.
Fees: notary and PPAT fees are capped by regulation and quoted before work starts, plus Rp 10,000 stamp duty per document. See notary fees in Bali.
Why does the activity of the company matter?
The company must have a business activity (KBLI) that is open to foreign investment at the Bali location. Bali has closed many business classifications to foreign companies, so the activity is checked first, before any land is chosen. A company that holds land with the wrong activity is a risk. See company deeds for the setup.
What are the steps?
- Confirm the activity. Check the KBLI against the current rules for the Bali location.
- Set up the PT PMA. Reserve the name, sign the deed of establishment before a notary, get the NIB through OSS, register for tax. You need at least two shareholders, one director and one commissioner.
- Check the land. Verify the certificate at BPN, the seller, encumbrances, zoning and access. See property due diligence.
- Sign the sale deed before a PPAT. The deed is drafted in Indonesian with an English version.
- Pay the taxes. The buyer pays BPHTB of 5% of the value above the regional threshold. The seller pays 2.5% final income tax.
- Register at BPN. This takes 2 to 8 weeks. Land that is currently Hak Milik needs the right route to HGB, which is settled before any deposit.
What do you need to watch after the purchase?
An HGB has dates. Extensions are PPAT deeds, and an expired HGB must be renewed within two years. The company also has yearly duties. Every PT must now file an Annual Report through SABH/AHU after the AGMS, and AHU may block corporate changes until it is filed.
HGB or Hak Pakai?
A foreigner with a KITAS or KITAP can hold Hak Pakai in their own name. A business, or an investor who wants the land inside a company, uses HGB. Both are compared on buying property in Bali, and the certificates are explained in land certificates in English.
