Glossary
Bali property glossary
Bali property has its own vocabulary, most of it Indonesian, and a lot of it is explained badly or in a way that suits whoever is selling. These are plain-English definitions of the terms that actually decide what you can build and what you own. We build villas rather than practise law, so each one points you at where to get proper advice.
- PT PMAforeign investment company
- A PT PMA is an Indonesian limited company with foreign shareholding, and it is the main legal vehicle a foreigner uses to hold buildable land rights and run a property business in Indonesia.
- Hak Milikfreehold
- Hak Milik is Indonesian freehold: the strongest form of land ownership, held indefinitely, and available only to Indonesian citizens.
- Hak Guna BangunanHGB
- Hak Guna Bangunan, usually shortened to HGB, is the right to construct and own buildings on land you do not own outright, and it can be held by Indonesian citizens, Indonesian legal entities and foreign-owned PT PMA companies.
- Hak Pakairight to use
- Hak Pakai is the right to use and benefit from land, and it is the one land title a foreign individual can hold personally in Indonesia, provided they hold a valid residence permit and use it for residential purposes.
- Hak Sewaleasehold
- Hak Sewa is leasehold: a contractual right to use land or property for an agreed period, available to anyone including foreigners and foreign entities, with no citizenship restriction.
- Nominee ownershipnominee structure
- A nominee arrangement is where an Indonesian citizen holds land under their own name on behalf of a foreigner, and it is illegal in Indonesia. It should be avoided.
- PBGPersetujuan Bangunan Gedung
- PBG, or Persetujuan Bangunan Gedung, is Indonesia's building approval, and it replaced the old IMB permit in 2021 as the permission you need before construction starts.
- SLFSertifikat Laik Fungsi
- SLF, or Sertifikat Laik Fungsi, is the certificate confirming a completed building is fit for use, issued after construction and inspection, and it is separate from the PBG that authorised the build.
- Zoningtata ruang
- Zoning is the local land-use designation that determines what may legally be built on a plot in Bali, and it governs whether a given piece of land can be used for tourism, residential or agricultural purposes.
- NotarisPPAT
- A notaris is an Indonesian public notary authorised to draft and register binding property deeds, and in a land transaction they carry out the legal checks and formalise the transfer or lease.
This is general information, not legal advice. Indonesian property law changes, and how it applies depends on your situation, your visa status and the specific plot. Always take advice from a qualified notaris before you commit money.
Planning a build?
We check the land, the zone and the ownership structure before you spend a rupiah on a plot. If it will not work, we tell you before you buy it.