Rarely from an Indonesian bank, but yes from private capital providers. Foreign individuals cannot hold freehold land (Hak Milik) and usually have no Indonesian credit history, so banks seldom give them construction finance. A foreign-owned company (a PT PMA) holding Hak Guna Bangunan (HGB, the right to build on land) can offer registrable security — and that is what private providers of completion and expansion capital typically look for. Information only.
Why don’t Indonesian banks usually finance foreign-owned construction?
Because banks rely on three things foreign developers seldom have: an Indonesian income and credit record, a long banking relationship, and registrable security in a form the bank is used to.
Many foreign-led projects also sit on leasehold land. A lease cannot carry a registered Hak Tanggungan (Indonesia’s registered security right over land). So most foreign-owned construction in Bali is funded with equity and private capital, not bank finance. Information only.
Which ownership structures can a foreigner use in Bali?
Four are common, but only the first three are sound. For a fuller explainer, see how foreigners hold property in Bali.
- PT PMA with HGB title. A PT PMA is an Indonesian company with foreign shareholders. It holds Hak Guna Bangunan, the right to build on and use the land. Under Government Regulation 18 of 2021, HGB is granted for up to 30 years, extendable by 20 and renewable by 30. Most commercial hospitality projects use this structure. See what a PT PMA costs to set up.
- Hak Pakai. A right of use that individual foreign residents can hold for a home, on similar 30 + 20 + 30 year terms, subject to minimum value and residency conditions.
- Leasehold (Hak Sewa). A lease from an Indonesian landowner, commonly 25 to 30 years with extension options. Simple and widespread, but it is a contract right, not a registered land title. See leasehold vs freehold.
- Nominee arrangements. Holding freehold in an Indonesian friend’s or nominee’s name is not legally recognised, carries serious risk, and is not acceptable security to a reputable capital provider.
Information only.
Does the way I own the land change what capital I can get?
Yes, directly. HGB held by a PT PMA can carry a registered Hak Tanggungan. That gives a capital provider the strongest form of security and opens up the widest range of options.
Leasehold projects can still be backed. But the security then relies on three things: an assignment of the lease rights (with the landowner’s consent), a pledge over the company’s shares, and fiduciary security over its assets (fidusia — security over things like furniture and income that stay in your hands). As a result, the capital available is usually smaller relative to value. See what security capital providers take over HGB land or a PT PMA.
What should a foreign developer prepare before looking for capital?
- A clean company file for the PT PMA: deed, amendments, shareholder register, NIB (business registration number) and tax registration (NPWP).
- The land title or registered lease, in the name of the company that will give the security.
- A valid PBG (building permit) that matches what is actually being built.
- An independent cost-to-complete and a realistic build programme.
- A written exit: who buys, who refinances, or what the asset earns once trading.
Check too that the company’s KBLI codes (its official business-activity codes) cover the project — see KBLI codes explained.
Last reviewed October 2026. General information about the Indonesian market, not legal, tax or financial advice. Take advice from an Indonesian notary and legal counsel on any specific structure.
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