Ownership Framework Matrix

Leasehold (Hak Sewa)

Target: Individuals & Foreigners

Duration: 25-35 years (standard)

Simplified, no company needed, lower entry price.

Depreciating asset value as lease expires.

Institutional

HGB (Hak Guna Bangunan)

Target: PT PMA (Foreign Co.)

Duration: 80 years (max total)

Corporate protection, full building ownership, long-term stability.

Requires setting up an Indonesian entity.

Domestic

Freehold (Hak Milik)

Target: Indonesian Nationals

Duration: Indefinite

Permanent ownership, highest capital appreciation.

Unavailable to foreign nationals directly.

2025/26 Investor Visa Pathways

E33G (Remote Worker / Nomad)

Perfect for passive investors managing their assets remotely. Valid for 1 year, extendable. Requires proof of income outside Indonesia.

E28C (Real Estate Investor)

Requires a significant real estate purchase or investment deposit. Provides 5 to 10 years of residency with ease of entry/exit.

B211A (Visit / Due Diligence)

Standard 60-day visa for scouting properties. Can be extended twice for a total of 180 days. Required for the acquisition process.

Tax Obligations

Acquisition Tax (BPHTB)5%

VAT (PPN)11%

Income Tax (Rental)10-20%

Notary Fee~1%

*Calculations based on government reported values. Consult a local tax advisor for final structuring.

Frequent Legal Queries

Can I sell my leasehold back to an Indonesian?

Yes, you can transfer your leasehold rights to another foreign individual or an Indonesian national. The remaining term stays the same unless an extension is negotiated.

What is an IMB or PBG?

These are building permits. A PBG (Persetujuan Bangunan Gedung) is required for every villa. Without it, you cannot legally operate as a rental property.

Is Tourism Zoning mandatory?

Absolutely. If you intend to run a commercial rental via Airbnb/Booking.com, the land MUST be in a Tourism Zone (Yellow/Orange). Green Zone is restricted.

How long does a PT PMA setup take?

Typically 4 to 6 weeks. It allows foreigners to have 100% control over the HGB certificate and hire international staff.

Compliance & Structure

Legal Foundations for
Foreign Investors.

Understanding the Indonesian legal framework is the difference between a high-yield asset and a liability.

Ownership Framework Matrix

Leasehold (Hak Sewa)

Target Audience

Individuals & Foreigners

Typical Duration

25-35 years (standard)

Simplified, no company needed, lower entry price.

Key Consideration

Depreciating asset value as lease expires.

Institutional

HGB (Hak Guna Bangunan)

Target Audience

PT PMA (Foreign Co.)

Typical Duration

80 years (max total)

Corporate protection, full building ownership, long-term stability.

Key Consideration

Requires setting up an Indonesian entity.

Domestic

Freehold (Hak Milik)

Target Audience

Indonesian Nationals

Typical Duration

Indefinite

Permanent ownership, highest capital appreciation.

Key Consideration

Unavailable to foreign nationals directly.

2025/26 Investor Visa Pathways

E33G (Remote Worker / Nomad)

Perfect for passive investors managing their assets remotely. Valid for 1 year, extendable. Requires proof of income outside Indonesia.

E28C (Real Estate Investor)

Requires a significant real estate purchase or investment deposit. Provides 5 to 10 years of residency with ease of entry/exit.

B211A (Visit / Due Diligence)

Standard 60-day visa for scouting properties. Can be extended twice for a total of 180 days. Required for the acquisition process.

Tax Obligations

Acquisition Tax (BPHTB)5%

VAT (PPN)11%

Income Tax (Rental)10-20%

Notary Fee~1%

*Calculations based on government reported values. Consult a local tax advisor for final structuring.

Frequent Legal Queries

Yes, you can transfer your leasehold rights to another foreign individual or an Indonesian national. The remaining term stays the same unless an extension is negotiated.

Integrity Protocol

Brixfox provides data for informational purposes only. This is not financial advice. Real estate laws in Indonesia are subject to regional variation and frequent updates. While we do our absolute best to provide the most accurate numbers and insights, accuracy is never guaranteed. Brixfox is not responsible for any investment decisions or outcomes. We strongly recommend engaging our vetted panel of Notaries and PT PMA Specialists before final signature.