Foreign Ownership in KEK Sanur: PT PMA, HGB and Land Rights Explained

Foreign ownership KEK Sanur means using an Indonesian company (PT PMA) to invest and hold rights in the Sanur Health Special Economic Zone, not personal freehold title. Foreigners and foreign entities cannot directly hold Hak Milik, HGU or HGB in Bali, including in the Sanur SEZ; the route is a compliant Indonesian legal entity structured within Indonesia’s land and investment laws.

Short answer: Can foreigners own property in KEK Sanur?

The short legal answer is “no” in the sense most foreign buyers mean it. A foreign individual cannot hold freehold land (Hak Milik) or direct HGB/HGU in KEK Sanur or anywhere in Indonesia.

The practical investment answer is “yes, via a company”:

• Foreign investors may establish a PT PMA (Perseroan Terbatas Penanaman Modal Asing – foreign investment limited-liability company) under Indonesian law.
• A PT PMA is legally an Indonesian entity and can hold certain land rights, primarily HGB (Hak Guna Bangunan) and in some sectors HGU (Hak Guna Usaha).
• Inside KEK Sanur, the typical structure is: a state-owned entity holds an umbrella HPL (Hak Pengelolaan Lahan); the zone’s business entity (BUPP) manages that HPL; your PT PMA receives an HGB over HPL or other derivative right via a contract with the BUPP.

Every step is governed by national rules: the Agrarian Law (UU 5/1960), implementing regulations such as PP 18/2021 and PP 21/2021, land-rights regulations issued by ATR/BPN, and Special Economic Zone rules (UU 39/2009, PP 12/2020 and KEK-specific decisions). KEK Sanur’s exact commercial plot terms are contractual and not fully published; they are negotiated case-by-case with the zone operator and should be vetted with licensed Indonesian legal counsel.

Regulatory context: Land and foreign ownership in Indonesia

Core land right types

Indonesia’s land system is right-based. You do not buy “land” in the common-law sense; you acquire a specific hak (right) with defined holders, purposes and time limits. Key rights relevant for foreign investors and foreign-owned companies include:

• Hak Milik (HM) – freehold ownership, full inheritable title.
• Hak Guna Usaha (HGU) – right to cultivate, typically for agricultural or plantation use.
• Hak Guna Bangunan (HGB) – right to build and use buildings on land not owned by the holder.
• Hak Pakai (HP) – right to use and/or harvest from land owned by the State or other parties.
• Hak Pengelolaan (HPL) – land management right, allowing the holder (often a SOE or regional government entity) to plan, allocate and cooperate with third parties.

The Ministry of Finance’s Directorate General of State Assets (DJKN Kemenkeu) and the National Land Agency (ATR/BPN) summarise the core rules for holders and maximum tenures. The table below condenses those rules as they relate to foreign investors and PT PMA (figures based on DJKN and PP 18/2021, position as of Q2 2024; rules can change).

Right type	Who can hold	Typical tenure & extension	Foreign individual?	PT PMA?
Hak Milik (HM)	Indonesian citizens; certain state bodies; very limited legal entities designated by law	Unlimited (no formal expiry)	No	No
Hak Guna Usaha (HGU)	Indonesian legal entities (including PT PMA); Indonesian citizens	Up to 35 years + 25-year extension + 35-year renewal (up to 95 years total per PP 18/2021)	No	Yes, if business field & zoning allow
Hak Guna Bangunan (HGB)	Indonesian legal entities (including PT PMA); Indonesian citizens	Up to 30 years + 20-year extension + 30-year renewal (up to 80 years total per PP 18/2021)	No	Yes
Hak Pakai (HP) atas tanah Negara	Indonesian citizens; certain foreign individuals domiciled in Indonesia; Indonesian legal entities; foreign representative offices	Up to 30 years + 20-year extension + 30-year renewal (up to 80 years total per PP 18/2021)	Yes, within strict criteria	Yes
Hak Pengelolaan (HPL)	State institutions, SOEs, regional governments, some public entities	Administrative; typically not time-limited like HGB/HGU	No	No – but can obtain HGB/HP over HPL

Key consequence: Foreign individuals are structurally excluded from freehold title. The “ownership” track for foreign investors in KEK Sanur is via an Indonesian company that can lawfully hold HGB or HP.

How foreign ownership works in KEK Sanur

The KEK Sanur land structure: HPL at the top

KEK Sanur (Kawasan Ekonomi Khusus Kesehatan Sanur) is built on state-managed land. A state-owned entity holds HPL – the land management right – over the zone area. Based on Indonesia’s KEK framework:

• The HPL holder grants authority to a BUPP (Badan Usaha Pembangun dan Pengelola) – the KEK’s development and operating company – to allocate plots and enter into cooperation agreements.
• The BUPP may then grant derivative rights such as HGB over HPL or long leases and operating agreements to investors and PT PMA tenants.

Practically, you are not buying a slice of HPL. You are negotiating with the KEK operator for:

• A defined plot or unit
• A defined right (HGB over HPL, long lease, usage agreement or a combination)
• A defined tenure, payment schedule and set of operational obligations (for example, medical licensing, hotel licensing, employment commitments)

Each transaction is contract-based and only partially visible in public data. KEK regulations set ceilings on tenures, not commercially binding minimums. Actual tenures and step-in rights are determined in your agreement with the BUPP and must be analysed on a case-by-case basis.

PT PMA as the foreign ownership vehicle

Because HGB requires an Indonesian legal subject, foreign investors in KEK Sanur almost always use a PT PMA. In broad strokes (based on BKPM/OSS practice as of 2024):

1. Determine business classification (KBLI) and foreign-ownership limits under the Positive Investment List (Perpres 10/2021 as amended). Health services, healthcare support, hospitality, and supporting commercial real estate each have their own codes and caps.
2. Incorporate the PT PMA:
   • Notarial deed in Indonesian; approval by the Ministry of Law and Human Rights.
   • Minimum issued capital: in practice, foreign-investment companies are expected to show a planned investment of at least Rp10 billion per KBLI line in many sectors (policy practice, not an explicit blanket rule; verify for your sector and timing).
   • Shareholding: at least one foreign shareholder plus an Indonesian director/commissioner structure as required by the Company Law.
3. Register in OSS-RBA (Online Single Submission – Risk Based Approach):
   • Obtain NIB (Business Identification Number).
   • Secure sectoral licenses (e.g. health facility permits, hotel classification, construction permits) according to risk level.
4. Negotiate with the KEK Sanur BUPP for the land and building package:
   • Letter of Intent / MoU.
   • Conditional allocation or reservation of plot/unit.
   • Definitive land-use or HGB-over-HPL agreement once licensing and investment requirements are met.
5. Register the right at ATR/BPN through a PPAT (land deed official) once your agreement is executed.

Throughout, foreign-ownership limits in the sector and the KEK operator’s internal policies will shape your maximum equity stake and minimum investment size. KEK status offers fiscal and customs incentives, but it does not waive Indonesia’s land law or foreign-ownership caps in restricted sectors.

HGB over HPL in KEK Sanur: What you actually get

Within a KEK, the most typical structure for commercial development by a PT PMA is HGB over HPL. Key characteristics under current regulations:

• Tenure: PP 18/2021 allows HGB up to 30 years initially, extendable by 20 years, and renewable for another 30 years, for a theoretical maximum of 80 years, subject to continued compliance and application.
• Underlying control: The HPL holder retains ultimate land-management authority. HGB over HPL gives you construction and usage rights, not sovereign control over the land.
• Transferability: HGB can generally be sold, mortgaged and inherited, but:
  • Within KEK Sanur, transfers are typically subject to BUPP consent and compliance with KEK regulations.
  • Bankability depends on how clearly the derivative right is framed in your contracts.
• Purpose limitation: HGB is tied to a specific use (e.g. hospital, hotel, clinic, commercial block). Changing use requires approvals and may not be allowed within KEK’s master plan.

The precise balance between “registered HGB title” and “contractual right to use a built unit” differs by project (e.g. core hospitals versus surrounding hotels or clinics). KEK Sanur has disclosed the broad land-use plan publicly, but not every contract template or pricing schedule. Expect deal-specific negotiation rather than a fixed, published price list.

If you are mapping a KEK Sanur investment trip, we can help you frame the regulatory questions and schedule meetings with counsel and licensed agents; plan your trip and our team can follow up by WhatsApp with a short, targeted checklist.

Foreign ownership Sanur SEZ vs outside the zone

Inside KEK Sanur: HGB and operational obligations

Inside the zone, the main “ownership” path for a foreign investor is through a PT PMA holding some form of HGB or long-use right integrated with KEK obligations:

• Integrated health and hospitality framing: The zone is legally designated as a health KEK with supporting tourism and commercial uses. Pure residential speculation is not its core mandate.
• Performance and activity obligations: Many plots carry requirements such as minimum build timelines, operational standards and sector-specific licenses (e.g. medical accreditation, hotel star rating).
• Incentive-linked compliance: Fiscal and customs incentives (e.g. certain tax and import facilities) are conditioned on actual activity and reporting. Losing KEK-operator approval can cascade into tax risk.

Outside KEK Sanur: Residential Hak Pakai alternatives

For foreigners asking “can foreigners own property KEK Sanur” with a residential lens, the honest answer is that KEK Sanur is not designed as a simple condo-for-holiday-use zone.

Outside the KEK perimeter, foreign individuals may access Hak Pakai atas rumah tinggal in limited circumstances under residential regulations (e.g. Perpres 13/2016 and its updates, plus ATR/BPN regulations):

• Foreign individuals who hold a valid stay permit (KITAS/KITAP) and reside in Indonesia can obtain Hak Pakai over a landed house or apartment in designated zones.
• Total tenure can reach up to around 80 years (initial grant, extension and renewal combined) under the newer land-tenure framework, mirroring HGB timelines.
• There are minimum price thresholds for foreign-eligible properties that vary by province (Bali has one of the higher floors), and zoning restrictions apply.

That is a separate track from KEK Sanur’s health-focused commercial framework. A typical structure for a foreigner wanting both a medical-oriented investment and a personal residence may combine:

• A PT PMA-investment in KEK Sanur for a clinic, health-support service or hotel share; and
• A Hak Pakai residential title outside KEK for private living, fully separated legally and fiscally.

This dual-track approach needs careful immigration, tax and land-structuring advice to avoid unintended permanent-establishment or related-party issues.

PT PMA land rights in Bali: Beyond KEK Sanur

HGB for foreign companies in Indonesia

HGB foreign company Indonesia is a frequent search term because it captures the main land-right capability foreign investors actually have. A PT PMA is an “Indonesian legal entity with foreign investment”, which the Agrarian Law recognises as eligible for HGB and HGU subject to sectoral and zoning rules.

For Bali, outside KEK Sanur:

• PT PMA commonly holds HGB over state land or over converted HM land (through a process where a local HM owner releases rights to the State, which then grants HGB to the company).
• Nominee arrangements (where Indonesian individuals hold HM “on behalf of” foreigners via private side agreements) remain legally risky and are repeatedly flagged by regulators as invalid attempts to circumvent land law.
• Bank lending and potential future exit are easier when the PT PMA holds clear, registered HGB rather than relying on side contracts.

HGB vs long lease

From a foreign investor’s perspective, the practical choice is often between:

Registered HGB

Stronger in law, registrable, mortgageable, but requires a clean zoning path, full compliance with HGB rules and, in KEK, alignment with the KEK master plan.

Contractual lease / usage agreement

Simpler to sign, but weaker as security, and depends heavily on contract wording and the counterparty’s solvency. Often used where HGB registration is impractical or where the KEK operator prefers a lease model.

In KEK Sanur, many core projects are likely to be structured on registered rights to support long-term investment and financing, but certain unit-sale or revenue-share schemes may be contract-dominated. Every prospectus and draft agreement needs line-by-line legal review.

Step-by-step: Entering KEK Sanur as a foreign investor

1. Clarify your business model

Foreign ownership Sanur SEZ rules feel different depending on what you want to do:

• Core health services: Hospitals, specialist clinics, rehabilitation facilities.
• Health-support businesses: Diagnostics, labs, telemedicine hubs, medical equipment servicing.
• Tourism and hospitality: Medical tourism hotels, wellness resorts aligned with KEK health positioning.
• Supporting services: F&B, retail, training, logistics, subject to KEK zoning.

Each category has different KBLI codes, foreign-shareholding caps, minimum-investment expectations and land-space needs. Define this first; the land structure follows.

2. Map PT PMA requirements and foreign caps

Before talking land, map the regulatory constraints:

• Is your intended sector fully open, capped or closed to foreign investment?
• Will your PT PMA need an Indonesian partner at the shareholder level to stay within positive-list caps?
• Does your model cross several KBLI lines, some of which are more restricted?

These questions shape your capital structure and may drive a single integrated PT PMA or multiple entities (e.g. one for health operations, one for property holding).

3. Engage KEK Sanur’s operator early

Unlike a regular land purchase in Bali where you might search listings, most KEK Sanur investment will be channelled via direct negotiation with the zone’s management:

• They control plot allocation under HPL.
• They must keep the zone’s land use consistent with the approved KEK master plan.
• They are your first checkpoint for minimum investment sizes, anchor-partner preferences and sectoral focus.

Expect the operator to ask for a concept note, proof of funds and a basic regulatory plan (licenses, staffing, technology source) before going deep on land terms.

4. Formalise your PT PMA and OSS licensing

Once there is a basic project alignment:

• Complete PT PMA incorporation through a notary.
• Secure NIB and initial OSS-RBA commitments.
• Obtain sectoral principle approvals where required (e.g. health facility feasibility from the Health Ministry or regional health office, depending on the service).

KEK-specific incentives often require that you already have at least the base-level OSS registration; in practice, land and licensing work in parallel but with sequencing pressure from both sides.

5. Land-rights contract and registration

At the land stage, scrutinise at least four layers:

1. Master documentation: KEK decree, HPL grant to the state entity, delegation to the BUPP.
2. Plot-level agreement: Your company’s contract with the BUPP – tenure, payment, build timeline, permitted use, step-in and termination events.
3. Registered right: PPAT deed for HGB/HP and ATR/BPN registration; verify alignment with the contract.
4. Finance and tax clauses: VAT treatment, income-tax incentives, potential reclassification risk if activity changes or incentives lapse.

This is where experienced Indonesian counsel is non-negotiable. A structure that “works” commercially but violates land or KEK rules can be unwound later at significant loss.

Risks, red flags and what not to do

Do not use nominee or backdoor structures

Attempts to circumvent foreign-ownership rules – for example, by:

• Putting KEK-related land or buildings in the name of an Indonesian individual “friend”, with a side agreement that they hold it for you; or
• Using a PT PMA on paper but funding and controlling everything through offshore entities with no properly recorded foreign-investment channel;

are legally fragile. Courts and regulators routinely treat such constructs as void when challenged. In a KEK, where the zone operator must report to central government, visibility is even higher.

Verify all tenures, numbers and promises

Marketing materials for KEK-related projects sometimes compress legal nuance into simple slogans like “80-year ownership” or “freehold-style rights”. Treat these as advertising, not law. Before committing capital:

• Check what is actually registered: HGB, HP, or just a contract?
• Confirm the initial tenure and the conditions for extensions or renewals. None of the long horizon numbers (80 or 95 years) are automatic; they are upper limits subject to compliance.
• Ask who the HPL holder is and how your right sits under that.

All figures and tenures in this page are based on national regulations and public KEK documentation as of mid-2024. For transactions, only up-to-date written opinions from licensed counsel and current ATR/BPN extracts are adequate.

Factor in policy change

Indonesia’s investment and land regulations have been actively revised since the Omnibus Law package. KEK rules, health-sector regulations and residential-foreign-ownership thresholds may all evolve.

No one can promise that a current incentive, minimum-investment threshold or ownership threshold will remain unchanged over your project lifetime. Your contracts should anticipate regulatory drift with robust change-in-law and renegotiation clauses.

Practical FAQs on foreign ownership in KEK Sanur

Can a foreigner personally own an apartment in KEK Sanur?

As of mid-2024, foreign individuals cannot personally hold HGB or HGU, and there is no published framework granting personal Hak Pakai to foreign individuals inside KEK Sanur. Any apartment or unit marketed to foreigners within the KEK is likely structured through a PT PMA, long lease, or other contract. Each scheme needs independent legal review; do not assume you will receive a registered title in your personal name.

Is HGB over HPL in KEK Sanur as strong as freehold?

No. HGB is a strong, registrable right but it is time-limited and sits under an HPL holder who retains land-management authority. Freehold (Hak Milik) is perpetual and available only to Indonesian citizens and certain entities. HGB over HPL in KEK Sanur can be commercially robust if properly structured, but it is not equivalent to freehold.

What is the maximum period I can hold land rights in KEK Sanur through a PT PMA?

Under the general land-tenure rules (PP 18/2021), HGB can be granted for up to 30 years, extended for 20 years and renewed for another 30 years, totalling up to 80 years. However, the actual initial term, extension rights and renewal conditions in KEK Sanur depend on your agreement with the KEK operator and continued compliance. There is no automatic guarantee of the full 80 years.

Do I need a PT PMA to invest in KEK Sanur real estate?

For meaningful ownership-style rights (HGB, HP, or integrated build-and-operate plots), a PT PMA is the standard route for foreign investors. Purely contractual revenue-sharing or smaller exposures might be possible via offshore entities or SPVs, but they will not give you direct land rights. Serious KEK Sanur projects with land or building control are almost always anchored by an Indonesian entity, usually a PT PMA.

Can I use a local nominee to hold Hak Milik for me near KEK Sanur?

Using an Indonesian individual or company to hold Hak Milik on your behalf via side agreements is a nominee arrangement. Indonesian authorities have repeatedly indicated that such structures are contrary to land law. They can be challenged and declared invalid, leaving the foreign party with weak or no enforceable rights. Structuring through a compliant PT PMA with HGB or Hak Pakai is the lawful route.

If you are actively evaluating projects or site visits, we can help you organise a focused trip that combines meetings with the KEK operator, notaries and licensed advisors; plan your trip and our team can coordinate next steps and WhatsApp follow-up tailored to your sector and risk profile.