Please note that this guide is intended for general reference only and investors should always consult an appropriately qualified Indonesian legal advisor in relation to a specific project.  The subject of property ownership in Indonesia is much debated and one of the few clear facts that should be remembered at all times is that only Indonesian citizens may currently own freehold land.  This law is not likely to change in the next 5 years.  Companies, whether Indonesian, foreign or joint venture, or foreign individuals can only enter into what international investors would generally refer to as lease agreements.  When putting this guide together, we received numerous interpretations and opinions from a variety of local law firms and “foreign technical advisors”.  As non-Indonesians are not allowed to practice law in their own right (except where they act as in-house legal counsels), obtaining accurate information is sometimes a difficult task.  Professional indemnity insurance is virtually unheard of, so any recourse in the event of an incorrect or inaccurate legal opinion is practically impossible.

All of the above being said, there are tried and tested methods of “ownership” and “land use rights” that have been used for many years by major hotel groups, individual investors and foreign companies.  We have tried to outline all reasonable options available to a non-Indonesian looking to enjoy a property in Bali in this guide.