A simple, step-by-step process for foreign buyers. From finding the right property to completing the transfer into your PT PMA structure.
At Royal Bali Group, we assist our clients throughout the entire acquisition process. From finding the right property to completing the transfer into their PT PMA structure, every stage is structured, transparent, and handled by our in-house legal, corporate, and project teams.
The process begins with identifying the right property based on the client's requirements.
Find the right property before committing funds.
Once a suitable property has been identified, we prepare and negotiate a Letter of Intent (LOI).
At this stage, the deposit is usually placed into an escrow account or held under a mutually agreed mechanism.
Secure the property while due diligence is being conducted.
Before proceeding with the purchase, Royal Bali Group conducts comprehensive legal due diligence on the property, verifying everything from title authenticity to access rights.
Ensure that the property is legally safe before committing to the purchase.
Before any commitment is made, we run every property through a layered review designed to surface ownership, regulatory, and physical risks. Each dimension is led by a specialist on our legal team.
As foreign individuals cannot directly own freehold land in Indonesia, we simultaneously establish a PT PMA (Foreign Investment Company).
This process is usually carried out while due diligence and transaction documents are being prepared.
Prepare the legal structure to acquire the property.
After satisfactory due diligence and establishment of the PT PMA, the parties proceed with the execution of the Sale and Purchase Deed (Akta Jual Beli or AJB) before a licensed Land Deed Official (PPAT).
Complete the legal transaction.
Where the land is currently held under Freehold Title (SHM) by an Indonesian individual, the title is first converted into Right to Build Title (HGB).
This process is commonly referred to as "Turun Hak" - literally, the "lowering of rights" - and is carried out through the Land Office in accordance with Indonesian land regulations.
Convert the title into a form that can be legally held by a PT PMA.
Hak Milik · Freehold
Held by Indonesian individuals only. The starting point - foreign buyers cannot directly hold this title.
Hak Guna Bangunan · Right to Build
PMA-eligible holder type. Converted through the Land Office (BPN) under Turun Hak proceedings.
Foreign-owned investment company
The HGB is registered under the PT PMA. The buyer retains long-term control through corporate ownership.
Hak Milik · Freehold
Held by Indonesian individuals only.
Hak Guna Bangunan · Right to Build
PMA-eligible holder type. Converted through the Land Office.
Foreign-owned investment company
The HGB is registered under the PT PMA.
After the HGB title has been issued, the ownership is transferred from the seller to the PT PMA. The new HGB certificate will then be registered under the name of the PT PMA.
Complete the transfer of legal ownership.
Through the HGB title held by the PT PMA, foreign investors may enjoy long-term control and use of the property.
The HGB rights can be extended and renewed in accordance with applicable Indonesian laws, providing a potential total control period of up to approximately 80 years.
Secure long-term ownership and investment protection.
Informational only
Content on this website is for informational and marketing purposes. Potential rental income projections are estimates based on assumptions and are not guarantees. Actual returns depend on market conditions, property management, occupancy rates, and other factors. Investors should conduct independent due diligence.
Foreign investment
Investment in Indonesian property is subject to Indonesian law, including foreign ownership restrictions, tax obligations, and regulatory changes. Consult qualified legal and tax advisors in Indonesia and your home country.
Independent verification
Do not rely solely on this website. Verify all information independently, including property details, financial projections, and legal status, with qualified professionals before committing capital.
Whether you have a property in mind or want to start with a search, our team will guide you through every step of the process. Reach out for a confidential conversation.