Indonesian property law for foreigners: every regulation, by number

25 instruments decide what a foreigner can own in Bali. One of them is repealed and still quoted everywhere. Here is each one by its formal name, with the articles that matter.

What people search, and which instrument it is

Indonesian property law for foreigners is spread over 25 instruments of seven different kinds. People search for them by nickname, by number, in Indonesian and in English. The first column is how they are searched for; the rest is what each one actually is.

One is repealed and still quoted everywhere. Nine are either amended or doing the amending, which is where most out-of-date summaries go wrong: they read the original and miss the amendment.

Which one wins when they disagree

Indonesian legislation has a statutory hierarchy. Law 12/2011 article 7(1) lists, in order: Constitution, MPR decrees, Laws, Government Regulations, Presidential Regulations, provincial by-laws, regency/city by-laws. Article 7(2) says legal force follows that order (Law 12/2011 art. 7(1)).

Ministerial regulations — a Permen, or an agency regulation such as a Perka BKPM — are not on the list. They are recognized under article 8, and in practice they implement the instrument above them. That is why this site reads them in pairs: Permen ATR/BPN 18/2021 implements PP 18/2021; Perka BKPM 4/2021 implements PP 5/2021 and sits alongside Perpres 10/2021.

Two consequences for a buyer. First, a rule stated only in a ministerial regulation is still a rule — the land-area cap on a foreigner’s home is in Permen ATR/BPN 18/2021, not in PP 18/2021 — but it is the easiest kind to change. Second, where a Bali regency sets a tax rate by by-law, the by-law sits at the bottom of article 7(1) and the ceiling in Law 1/2022 sits above it — our reading of why a regency rate above the ceiling would not stand.

How to read an Indonesian citation

Every citation on this site follows one pattern, and it maps directly onto the Indonesian text.

So Pasal 186 ayat (1) huruf a is art. 186(1)(a). Where this site quotes Indonesian wording, it is from the official text, and where the English is ours, it says so.

Repealed, amended, and still being quoted

PP 103/2015 is repealed (PP 18/2021 art. 103(b)). It governed home ownership by foreigners and it is still what most English-language guides cite. If a document or a pitch relies on it, it predates February 2021. What changed when it went.

PP 37/1998 on the PPAT is still in force but was amended by PP 24/2016; read the two together. Perpres 10/2021 was amended within months by Perpres 49/2021, which rewrote article 2. Law 40/2007 on companies was rewritten in part by Law 6/2023 article 109 — which is where the one-person PT and founder-set capital come from. A summary of any of these that does not mention the amendment is describing a text that no longer exists.

PP 24/1997 on land registration was not repealed by PP 18/2021; it survives, with PP 18/2021 adding to it — including article 90’s recording of leases.

The 25 instruments, one by one

For each: the formal Indonesian title (which is what the official database indexes), the English name, its status, what it decides, the articles this site relies on, and a link to the official text.

Law 5/1960 (UUPA)

Undang-Undang Nomor 5 Tahun 1960 tentang Peraturan Dasar Pokok-Pokok Agraria. The Basic Agrarian Law. In force. Which land rights exist and who may hold each. Reserves hak milik to citizens, voids indirect transfers to foreigners, and defines hak sewa. Where this site uses it.

• UUPA (Law 5/1960) art. 21(1) — Indonesian citizens only
• UUPA (Law 5/1960) art. 26(2) — void by operation of law
• UUPA (Law 5/1960) art. 45 — four classes of holder

Official text on JDIH BPK

PP 24/1997

Peraturan Pemerintah Nomor 24 Tahun 1997 tentang Pendaftaran Tanah. Government Regulation on Land Registration. In force, partly amended by PP 18/2021. What gets registered, what a certificate proves, and that a transfer is registrable only on a PPAT deed. Where this site uses it.

• PP 24/1997 art. 4(3) — must be registered
• PP 24/1997 art. 32(1) — strong evidence, so far as it matches the register
• PP 24/1997 art. 9(1) — not among the objects of land registration

Official text on JDIH BPK

PP 37/1998

Peraturan Pemerintah Nomor 37 Tahun 1998 tentang Peraturan Jabatan Pejabat Pembuat Akta Tanah. Regulation on the Office of the Land Deed Official (PPAT). In force, amended by PP 24/2016. Who the PPAT is and which deeds only a PPAT may make. Where this site uses it.

• PP 37/1998 art. 1(1) — a public official authorized to make authentic deeds over land rights

Official text on JDIH BPK

PP 24/2016

Peraturan Pemerintah Nomor 24 Tahun 2016 tentang Perubahan atas PP 37/1998. Amendment to the PPAT regulation. In force. Among other amendments, sets the PPAT’s working area at one province. Where this site uses it.

• PP 24/2016 art. 12(1) — one province

Official text on JDIH BPK

PP 34/2016

Peraturan Pemerintah Nomor 34 Tahun 2016 tentang Pajak Penghasilan atas Penghasilan dari Pengalihan Hak atas Tanah dan/atau Bangunan. Regulation on income tax on transfers of land and buildings. In force. The seller's final income tax on a transfer. Where this site uses it.

• PP 34/2016 art. 2(1)(a) — 2.5%

Official text on JDIH BPK

PP 103/2015

Peraturan Pemerintah Nomor 103 Tahun 2015 tentang Pemilikan Rumah Tempat Tinggal atau Hunian oleh Orang Asing. Regulation on home ownership by foreigners. Repealed. Nothing any more. Still the most-quoted rule on foreign home ownership in English-language material. Where this site uses it.

• PP 18/2021 art. 103(b) — repealed

Official text on JDIH BPK

PP 18/2021

Peraturan Pemerintah Nomor 18 Tahun 2021 tentang Hak Pengelolaan, Hak atas Tanah, Satuan Rumah Susun, dan Pendaftaran Tanah. Regulation on management rights, land rights, strata title and land registration. In force. The terms of hak pakai and HGB, who may hold them, the foreigner's home rules, and the recording of leases. Where this site uses it.

• PP 18/2021 art. 52(1) — 30 years
• PP 18/2021 art. 69(1) — a valid immigration document
• PP 18/2021 art. 90 — recorded on the public register and/or the land certificate

Official text on JDIH BPK

Permen ATR/BPN 18/2021

Peraturan Menteri Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional Nomor 18 Tahun 2021 tentang Tata Cara Penetapan Hak Pengelolaan dan Hak atas Tanah. Ministerial regulation on the procedure for granting land rights. In force. The detailed limits on a foreigner's home: what counts as one, the land-area cap, the price category, and conversion on purchase. Where this site uses it.

• Permen ATR/BPN 18/2021 art. 185 — a home — a landed house, or a strata unit
• Permen ATR/BPN 18/2021 art. 186(1)(a)(3) — 2,000 m²
• Permen ATR/BPN 18/2021 art. 187(3) — must be converted to hak pakai

Official text on JDIH BPK

PP 16/2021

Peraturan Pemerintah Nomor 16 Tahun 2021 tentang Peraturan Pelaksanaan UU 28/2002 tentang Bangunan Gedung. Regulation implementing the Buildings Law. In force. Building consent and fitness-for-function certificates — the building’s papers, as distinct from the land’s. Where this site uses it.

• PP 16/2021 art. 1(17) — a building consent, not a land right
• PP 16/2021 art. 1(18) — a fitness-for-function certificate

Official text on JDIH BPK

PP 5/2021

Peraturan Pemerintah Nomor 5 Tahun 2021 tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko. Regulation on risk-based business licensing. In force. Business licensing, the NIB, and accommodation as a licensed tourism activity. Where this site uses it.

• PP 5/2021 art. 1(1) — the legality given to a business actor to start and run a business
• PP 5/2021 art. 140(f) — a licensed tourism business activity

Official text on JDIH BPK

Perka BKPM 4/2021

Peraturan Badan Koordinasi Penanaman Modal Nomor 4 Tahun 2021 tentang Pedoman dan Tata Cara Pelayanan Perizinan Berusaha Berbasis Risiko dan Fasilitas Penanaman Modal. Investment Board regulation on licensing and investment facilities. In force. That a PMA must be a PT, the investment value and the paid-up capital. Where this site uses it.

• Perka BKPM 4/2021 art. 9(9) — an Indonesian limited liability company
• Perka BKPM 4/2021 art. 12(2) — more than IDR 10 billion
• Perka BKPM 4/2021 art. 12(7) — at least IDR 10 billion

Official text on JDIH BPK

Perpres 10/2021

Peraturan Presiden Nomor 10 Tahun 2021 tentang Bidang Usaha Penanaman Modal. Presidential Regulation on investment business lines. In force, amended by Perpres 49/2021. Which business lines are open to investment and that a foreign investor operates only as a large business. Where this site uses it.

• Perpres 10/2021 art. 7(1) — only in large businesses with an investment value above IDR 10 billion

Official text on JDIH BPK

Perpres 49/2021

Peraturan Presiden Nomor 49 Tahun 2021 tentang Perubahan atas Perpres 10/2021. Amendment to the investment business lines regulation. In force. Rewrites article 2: all lines open unless closed or reserved, open lines are commercial ones. Where this site uses it.

• Perpres 10/2021 art. 2(1), as amended by Perpres 49/2021 — open to investment unless declared closed or reserved to central government

Official text on JDIH BPK

Law 40/2007

Undang-Undang Nomor 40 Tahun 2007 tentang Perseroan Terbatas. The Limited Liability Company Law. In force, amended by Law 6/2023. How a PT is founded, and by how many. Where this site uses it.

• Law 40/2007 art. 7(1), as amended by Law 6/2023 art. 109 — two or more persons, by notarial deed made in Indonesian
• Law 40/2007 art. 7(5)-(6), as amended by Law 6/2023 art. 109 — six months

Official text on JDIH BPK

Law 6/2023

Undang-Undang Nomor 6 Tahun 2023 tentang Penetapan Perpu 2/2022 tentang Cipta Kerja menjadi Undang-Undang. The Job Creation Law. In force. For this site, one article: 109, which rewrites the company law — including the one-person PT and founder-set capital. Where this site uses it.

• Law 40/2007 art. 7(7)(e) and art. 153A(1), as amended by Law 6/2023 art. 109 — micro and small businesses only
• Law 40/2007 art. 32(2), as amended by Law 6/2023 art. 109 — set by the founders' decision

Official text on JDIH BPK

Law 1/2022 (HKPD)

Undang-Undang Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah. The Law on central–regional fiscal relations. In force. The ceilings on acquisition duty and annual land and building tax; the rates themselves are regional. Where this site uses it.

• Law 1/2022 (HKPD) art. 47(1) — 5%
• Law 1/2022 (HKPD) art. 41(1) — 0.5%

Official text on JDIH BPK

Law 7/2011

Undang-Undang Nomor 7 Tahun 2011 tentang Mata Uang. The Currency Law. In force. That a transaction in Indonesia is paid in rupiah, with listed exceptions. Where this site uses it.

• Law 7/2011 art. 21(1) — rupiah must be used

Official text on JDIH BPK

Law 12/2011

Undang-Undang Nomor 12 Tahun 2011 tentang Pembentukan Peraturan Perundang-undangan. The Law on making legislation. In force, amended by Laws 15/2019 and 13/2022 (not in article 7). Which instrument wins when two disagree.

• Law 12/2011 art. 7(1) — Constitution, MPR decrees, Laws, Government Regulations, Presidential Regulations, provincial by-laws, regency/city by-laws

Official text on JDIH BPK

Denpasar Perda 5/2023

Peraturan Daerah Kota Denpasar Nomor 5 Tahun 2023 tentang Pajak Daerah dan Retribusi Daerah. Denpasar by-law on regional taxes and levies. In force, amended by Perda 2/2025 (not in the articles used). The real acquisition duty, annual land tax and hotel-services tax for Sanur and the rest of the city. Where this site uses it.

• Denpasar Perda 5/2023 art. 13(1) — 5%
• Denpasar Perda 5/2023 art. 8(1) — 0.1% on NJOP up to IDR 1 billion, 0.2% above it
• Denpasar Perda 5/2023 art. 24(1) — 10%

Official text on JDIH BPK

Tabanan Perda 13/2023

Peraturan Daerah Kabupaten Tabanan Nomor 13 Tahun 2023 tentang Pajak Daerah dan Retribusi Daerah. Tabanan by-law on regional taxes and levies. In force. The same three taxes for Tabanan, including a IDR 3 billion tax-free value on family inheritance. Where this site uses it.

• Tabanan Perda 13/2023 art. 13 — 5%
• Tabanan Perda 13/2023 art. 12(5) — IDR 3 billion
• Tabanan Perda 13/2023 art. 29(1)(c) — 10%

Official text on JDIH BPK

Badung Perda 4/2025

Peraturan Daerah Kabupaten Badung Nomor 4 Tahun 2025 tentang Rencana Tata Ruang Wilayah Kabupaten Badung Tahun 2025-2045. Badung spatial plan 2025–2045. In force. Zones, what each permits, and how much of a plot a building may cover — for Canggu, Seminyak and Uluwatu. Where this site uses it.

• Badung Perda 4/2025 art. 92(2)(e) — 10%
• Badung Perda 4/2025 art. 101(4) — not among the permitted or conditional uses
• Badung Perda 4/2025 art. 101(15)(a) — at least 100 meters from the highest tide line

Official text on JDIH BPK

Gianyar Perda 2/2023

Peraturan Daerah Kabupaten Gianyar Nomor 2 Tahun 2023 tentang Rencana Tata Ruang Wilayah Kabupaten Gianyar Tahun 2023-2043. Gianyar spatial plan 2023–2043. In force. Zones for Ubud and the Gianyar coast; this site uses its coastal setback. Where this site uses it.

• Gianyar Perda 2/2023, elucidation to art. 71(9) — at least 100 meters from the highest tide line

Official text on JDIH BPK

Law 30/2004

Undang-Undang Nomor 30 Tahun 2004 tentang Jabatan Notaris. The Law on the Office of Notary. In force, amended by Law 2/2014 (not in article 36). The cap on a notary’s fee — which is what a lease deed costs to make. Where this site uses it.

• Law 30/2004 art. 36(3) — at most 2.5% up to IDR 100 million, 1.5% up to IDR 1 billion, and above that by agreement but not more than 1%
• Law 30/2004 art. 36(4) — at most IDR 5 million

Official text on JDIH BPK

Law 1/1974

Undang-Undang Nomor 1 Tahun 1974 tentang Perkawinan. The Marriage Law. In force, amended by Law 16/2019 (art. 7 only); art. 29 reinterpreted in 2016. Joint marital property, the marriage agreement, and what a mixed marriage is. Where this site uses it.

• Law 1/1974 art. 35(1) — joint property
• Law 1/1974 art. 57 — a marriage in Indonesia between two people subject to different laws because of different citizenship, one of them Indonesian
• Law 1/1974 art. 29(1) — at or before the marriage, endorsed by the marriage registrar

Official text on JDIH BPK

Constitutional Court 69/PUU-XIII/2015

Putusan Mahkamah Konstitusi Nomor 69/PUU-XIII/2015. Constitutional Court decision on the marriage agreement. Binding. That a marriage agreement can be made during the marriage, before a notary. Where this site uses it.

• Constitutional Court Decision 69/PUU-XIII/2015 — at, before or during the marriage, endorsed by the marriage registrar or a notary

Official text on JDIH BPK

What we have not read, and so do not state

A list of instruments is only honest if it also says which ones are missing. These are referred to by the instruments above and are not in the database we read from, or were not obtained.

• The Ministerial Decision on the minimum price of a foreigner’s home. Permen ATR/BPN 18/2021 article 187(2) delegates the figure to it. We print no price floor.
• Badung’s and Gianyar’s tax by-laws, which set BPHTB, PBB and the hotel-services tax for Canggu, Seminyak, Uluwatu and Ubud. Gianyar Perda 7/2023 is listed on the regency’s legal database but its record errors on their server; Badung’s database did not respond. We print only the Law 1/2022 ceilings for them.
• The detailed spatial plans (RDTR) that refine the regency plans parcel by parcel, and Tabanan’s spatial plan, whose only copy we found is an unreadable scan.
• PP 5/2021 Lampiran I, with each KBLI code’s risk level and license (PP 5/2021 art. 141(1)).
• The Perpres 10/2021 lampiran, with the business lines that carry conditions.
• The ministerial regulation on recording leases that PP 18/2021 article 99 delegates to.
• The Civil Code (KUHPerdata) provisions on leases.

How this site checks what it publishes.

This is a reading list, not legal advice. We are paid a fixed fee per enquiry, and the instrument that decides your case is best read with a notary who has your documents.

Questions on this page

What is the main law on land ownership in Indonesia?

Law 5/1960, the Basic Agrarian Law (Undang-Undang Pokok Agraria, UUPA). It sets out which land rights exist and who may hold each. Article 21(1) reserves hak milik to Indonesian citizens; article 26(2) voids indirect transfers of it to foreigners; articles 44 and 45 define hak sewa, the lease.

What does PP 18/2021 say about foreigners?

PP 18/2021 lets a foreigner hold hak pakai for a home, for 30 + 20 + 30 years (article 52(1)), while holding a valid immigration document (article 69(1)), and sets four kinds of limit on a foreigner's home in article 72. Article 103(b) repealed PP 103/2015.

Is PP 103/2015 still valid?

No. PP 18/2021 article 103(b) repealed it. It is still widely quoted in English-language material on foreign home ownership, which is a reliable sign the material predates 2021.

Which regulation sets the PT PMA minimum capital?

Perka BKPM 4/2021 article 12(7): issued/paid-up capital of at least IDR 10 billion. Article 12(2) separately sets a minimum investment value of more than IDR 10 billion, excluding land and buildings, per 5-digit KBLI line per project location.

If a ministerial regulation and a government regulation conflict, which wins?

Law 12/2011 article 7(1) lists the hierarchy — the Constitution, MPR decrees, Laws, Government Regulations (PP), Presidential Regulations (Perpres), provincial and then regency or city by-laws — and article 7(2) says legal force follows that order. Ministerial regulations (Permen) sit outside that list, under article 8.

What do pasal, ayat and huruf mean?

Pasal is article, ayat is paragraph (the number in brackets) and huruf is the lettered point. So 'Pasal 186 ayat (1) huruf a' is written 'art. 186(1)(a)' on this site. Penjelasan is the official elucidation published with the instrument, and Lampiran is an annex.

Where can I read these regulations in the original?

Every instrument on this page links to its entry on JDIH BPK (peraturan.bpk.go.id), the Indonesian Audit Board's legal database, which is where this site read them.

Sources cited on this page

1. Law 5/1960 (UUPA) — The Basic Agrarian Law
2. PP 24/1997 — Government Regulation on Land Registration
3. PP 37/1998 — Regulation on the Office of the Land Deed Official (PPAT)
4. PP 24/2016 — Amendment to the PPAT regulation
5. PP 34/2016 — Regulation on income tax on transfers of land and buildings
6. PP 18/2021 — Regulation on management rights, land rights, strata title and land registration
7. Permen ATR/BPN 18/2021 — Ministerial regulation on the procedure for granting land rights
8. PP 16/2021 — Regulation implementing the Buildings Law
9. PP 5/2021 — Regulation on risk-based business licensing
10. Perka BKPM 4/2021 — Investment Board regulation on licensing and investment facilities
11. Perpres 10/2021 — Presidential Regulation on investment business lines
12. Perpres 49/2021 — Amendment to the investment business lines regulation
13. Law 40/2007 — The Limited Liability Company Law
14. Law 6/2023 — The Job Creation Law
15. Law 1/2022 (HKPD) — The Law on central–regional fiscal relations
16. Law 7/2011 — The Currency Law
17. Law 12/2011 — The Law on making legislation
18. Denpasar Perda 5/2023 — Denpasar by-law on regional taxes and levies
19. Tabanan Perda 13/2023 — Tabanan by-law on regional taxes and levies
20. Badung Perda 4/2025 — Badung spatial plan 2025–2045
21. Gianyar Perda 2/2023 — Gianyar spatial plan 2023–2043
22. Law 30/2004 — The Law on the Office of Notary
23. Law 1/1974 — The Marriage Law
24. Constitutional Court 69/PUU-XIII/2015 — Constitutional Court decision on the marriage agreement

Every rule above was read in the Indonesian original on 20 September 2026, not from an English summary. How we check this.