Financing a property in Bali

This page is about money: borrowing against a house or an apartment in Bali, paying a developer in stages, and how a payment is made. It sets out what the written law says. It is general information, not legal or financial advice, and it recommends no bank, product or structure.

It states no interest rate, fee or loan amount. Those are each bank's own terms and they change. Where the page names a bank product, it is only an example that such a product exists on a stated date.

Where the page says we found no text, we looked in the official sources named under the section and did not find one. That does not mean the answer is no. A notary (notaris) or land deed official (PPAT) and the lender have to check your case.

A non-resident can borrow only under exceptions, and the rule turns on where the borrower lives, not on nationality. Bank Indonesia's regulation on the money market and the foreign exchange market, PBI 6/2024, which replaced PBI 24/7/2022 (Pasal 193(f)), bars banks from granting an overdraft, credit and/or financing, in rupiah or in a foreign currency, to a non-resident (bukan penduduk) (Pasal 115(1)(d)). The main exception allows credit or financing to a non-resident on condition of a certain economic activity in Indonesia (Pasal 115(2)(c)); the PADG described below lists them. Pasal 115(2) lists other exceptions too, among them other transactions that Bank Indonesia sets (huruf e). It leaves the details to a regulation of the Board of Governors (PADG) (Pasal 117). A bank that breaks the ban faces administrative sanctions, from a written warning to withdrawal of its licence or designation (Pasal 133(1)).

A non-resident is a person, a legal entity or another body that is not domiciled in Indonesia, or has been domiciled there for less than one year. A resident is one that is domiciled, or plans to be domiciled, in Indonesia for at least one year (Explanation of Pasal 28(2)). A foreigner who lives abroad is therefore a non-resident. A visitor who has been in Indonesia for less than a year is one too, unless the visitor plans to be domiciled here for at least a year; the text does not say how a bank judges that plan or what proves it. Which permit you hold and how long it lasts are on the page on visas and stay.

The details are in PADG 11/2024 on foreign exchange market transactions, as amended by PADG 7/2026 (in force from 1 April 2026); its later amendments, PADG 11/2026 and PADG 15/2026, do not change these articles. It repeats the ban (Pasal 46(1)(d)) and lists what counts as credit to a non-resident for a certain economic activity in Indonesia (Pasal 47(1)): a syndicated loan in which a bank abroad takes a larger share, for a real-sector project in Indonesia; a loan secured by a placement of funds at the same bank, not above that placement, not longer than its remaining term and used for economic activity in Indonesia; a credit card; consumer credit or financing in Indonesia (kredit atau pembiayaan konsumsi di Indonesia); an intraday overdraft; a negative balance from administration charges; and other activities. The PADG does not define consumer credit (its Explanation says only "Cukup jelas"). Bank Indonesia's loan-to-value rule defines, for its own purposes (its Pasal 1 opens "Dalam Peraturan Anggota Dewan Gubernur ini"), property credit for a house, an apartment, or a shop-house or office-house as consumer credit (PADG 21/25/PADG/2019 as amended by PADG 23/6/PADG/2021, Pasal 1 angka 12). PADG 11/2024 does not say it uses that meaning. Read together, a home loan to a non-resident can fall within Pasal 47(1)(d); that is our reading, not a rule. No text obliges a bank to give one, and we found no text on how a bank applies Pasal 47(1)(d) to a non-resident buyer. A bank that breaks the ban receives a written warning and must pay 1% of the transaction, at least Rp10,000,000 and at most Rp1,000,000,000 (Pasal 46(3)).

The loan-to-value rules do not turn on nationality. Bank Indonesia's regulation on loan to value (Rasio LTV) and financing to value (Rasio FTV) covers credit by banks and financing by sharia banks for a house (rumah tapak), an apartment (rusun) and a shop-house or office-house, and it defines them by the property, not by the borrower. Neither the original regulation (PADG 21/25/PADG/2019) nor any of its seven amendments mentions a borrower's nationality or citizenship. It sets the ratio limits a bank must keep, for a limited period: PADG 30 of 2025, in force from 1 January 2026, keeps them until 31 December 2026. We state no ratio here, because Bank Indonesia changes them by regulation.

So, for a resident, and for a non-resident within those exceptions, whether a given bank lends to a foreigner is that bank's own decision under its credit policy. The legal question that comes first after residence is whether the property can carry a Hak Tanggungan, the next section. As an example only, not a recommendation: on 4 October 2026 the product page of PT Bank Permata Tbk for Permata KPR iB IMBT, a sharia home financing (KPR, kredit pemilikan rumah) on a hire-purchase principle, listed Warga Negara Indonesia dan Warga Negara Asing among those who may apply. That page is no answer to the residence question above. Its terms, price and approval are the bank's, and we do not assess them.

A loan can also come from outside Indonesia. The Explanation of UU 4/1996 says the credit agreement may be made abroad and the parties may be foreign persons or entities, as long as the credit is used for development in Indonesia (Penjelasan Pasal 10(1)); it does not say whether buying a home counts. A party that lives abroad must give a chosen address in Indonesia in the Hak Tanggungan deed (Pasal 11(1)(b)). Bank Indonesia's circular on the rupiah rule gives an example of international financing, which is exempt from that rule: a loan by a bank abroad to a customer in Indonesia (SE 17/11/DKSP, I.C.5; see the section on paying in rupiah).

A loan against land or a building is secured by a Hak Tanggungan: a security right that gives the lender priority over other creditors (see the glossary). UU 4/1996 is the law on it, and its Explanation calls the Hak Tanggungan the only security right over land (Penjelasan Umum, point 5).

The rights that can carry it are Hak Milik, Hak Guna Usaha (HGU) and HGB, and a Hak Pakai on State land that must be registered and can be transferred (Pasal 4(1) and (2)). Pasal 4(3) left a Hak Pakai on Hak Milik land to a later Government Regulation. The Explanation names two conditions: the right must be registered in the land register, and it must be transferable by its nature.

For a foreigner the usual rights are Hak Pakai for a house, and Hak Milik atas Satuan Rumah Susun for an apartment unit built on Hak Pakai or HGB land (Permen ATR/BPN 18/2021, Pasal 188(1); see the page on marriage and inheritance for who may hold them). A Hak Pakai with a term can be security with a Hak Tanggungan (PP 18/2021, Pasal 60(1)), and the holder has the right to do it (Pasal 59(c)). Pasal 60(1) does not distinguish a Hak Pakai on State land, on Hak Pengelolaan land or on Hak Milik land, and we found no text that links it expressly to Pasal 4(3). A Hak Pakai for as long as it is used, which government bodies and foreign missions hold, cannot be security (Pasal 60(3), 49(3)).

The certificate of an apartment unit (SHM sarusun) can be security with a Hak Tanggungan (UU 20/2011, Pasal 47(5); UU 4/1996, Pasal 27).

Until 2021 the rule for a foreigner's house was written out: Permen ATR/BPN 29/2016, Pasal 16(1), said a house owned by a foreigner can be security with a Hak Tanggungan. Permen ATR/BPN 18/2021 revoked that regulation (Pasal 208(d)), and the 2021 texts we read have no equal sentence about foreigners' houses. The route now runs through the general rules above. Whether the land office registers a Hak Tanggungan on a particular foreigner's Hak Pakai is a question for your PPAT.

On Hak Pengelolaan land, a Hak Tanggungan on the Hak Pakai or HGB over it needs the recommendation or approval of the Hak Pengelolaan holder, except where the right passes by auction (Permen ATR/BPN 18/2021, Pasal 49(1)).

How it works: the Hak Tanggungan is granted by a deed made by a PPAT (Pasal 10(2)), it must be registered at the land office (Pasal 13(1)), and it arises on the date of its land-book entry (Pasal 13(5)); the time this takes is on the page on taxes and costs. If the borrower defaults, the first-ranking holder may sell the property at a public auction (Pasal 6). The Hak Tanggungan follows the property into any hands (Pasal 7). A promise that the lender becomes the owner on default is void (Pasal 12).

A Hak Tanggungan ends when the land right ends, and the debt does not (Pasal 18(1)(d) and (4)). A Hak Pakai has a fixed term (see the glossary), so the end date of the loan and the remaining term of the right are two different dates.

The lease right for building (Hak Sewa untuk Bangunan) is not on the list of rights that can carry a Hak Tanggungan (UU 4/1996, Pasal 4). The Explanation says only registered, transferable land rights qualify and names the four it designates (Penjelasan Umum, point 5). The land register covers Hak Milik, HGU, HGB, Hak Pakai, Hak Pengelolaan, wakaf land, Hak Milik atas Satuan Rumah Susun, Hak Tanggungan and State land (PP 24/1997, Pasal 9(1)); a lease can only be noted on the register or certificate (PP 18/2021, Pasal 90). No text we read makes a lease the object of a Hak Tanggungan, so a lease cannot be mortgaged in this way.

The law has a different security for a building. Fiduciary security (jaminan fidusia) covers buildings that cannot carry a Hak Tanggungan (UU 42/1999, Pasal 1(2)), and its Explanation says a building on another person's land can be an object of it (Penjelasan Pasal 3(a)). Whether a bank accepts that against a leased villa is the bank's decision. We found no official text on lending against a lease to a foreigner.

If the owner of the land you lease has mortgaged it, the Hak Tanggungan follows the land (Pasal 7) and the lender may sell it at a public auction if the owner defaults (Pasal 6). The deed may also bar the owner from leasing, from changing the term of a lease and from taking rent in advance without the lender's written consent (Pasal 11(2)(a)). The deed may also contain the owner's promise to vacate the property when the Hak Tanggungan is enforced (Pasal 11(2)(j)). A building owned by someone other than the holder of the land right, such as a tenant's own building, can be covered by the Hak Tanggungan only if its owner signs the deed (Pasal 4(5)). UU 4/1996 has no sentence on what a sale at auction does to a lease already made. Look for a Hak Tanggungan note on the certificate and for any consent, as the checks in the page on leasing say.

Paying a developer in stages (cicilan) is a matter of the contract. For a house, a row house or an apartment unit sold before it is finished, the law is PP 14/2016 as amended by PP 12/2021, which also revoked the earlier Permen PUPR 11/PRT/M/2019 on the PPJB (Pasal 142A). The cap on how much a developer may collect early, the refund rules and the case where the buyer's mortgage is refused are in the page on disputes, and the developer's duty to hold a bank or non-bank letter of support is in the developer disclosure standard. They are not repeated here.

Two points about the money are not on those pages. The PPJB must state the price and how it is to be paid (Pasal 22J(c)). The matters agreed that must be certain before a PPJB is signed include the status of the land or the building where it serves as security; at marketing a developer may explain that to the buyer (Pasal 22I(1)(b), (3)(d), 22E(2)).

The text does not say how these rules apply to a foreign buyer.

Rupiah must be used in every payment transaction, in settling money obligations and in other financial transactions carried out in Indonesia (UU 7/2011, Pasal 21(1)). The exceptions are certain State budget transactions, grants from or to abroad, international trade, foreign currency deposits in a bank, and international financing (Pasal 21(2)). A sale of land or a house in Indonesia is not on the list. Bank Indonesia's regulation PBI 17/3/PBI/2015 repeats the rule and the exceptions (Pasal 2 to 4).

Bank Indonesia's circular on that regulation says the rule follows the place of the transaction and covers residents and non-residents, cash and non-cash, and that the transaction and its payment are one unit, so the payment received must be in rupiah (SE 17/11/DKSP, I.A and I.B). Its worked example is a payment by transfer in the payer's own currency to an Indonesian company, which must receive it in rupiah.

Prices follow the same rule. A business must show prices only in rupiah and may not show rupiah and a foreign currency together (PBI, Pasal 11; SE, II.A). The circular lists agent fees in property sales, the rent of apartments, houses and land, and price clauses in contracts and receipts (SE, II.B). A written agreement to pay in a foreign currency is allowed only for the excepted transactions and for strategic infrastructure projects approved by Bank Indonesia (PBI, Pasal 10(2) and (3)).

For a breach, UU 7/2011 Pasal 33(1), as adjusted by UU 1/2026 (Lampiran I, nomor 84), threatens a fine of up to category III, which is Rp50,000,000 (UU 1/2023, Pasal 79(1)(c)), with no detention. The older text threatened detention of up to one year and a fine of up to Rp200,000,000. The Act does not limit the offence to cash: it covers every person who does not use rupiah in a transaction with a payment purpose, in settling a money obligation or in another financial transaction (Pasal 33(1) with Pasal 21(1)). Bank Indonesia's regulation splits the sanctions by the form of payment. It applies the criminal provision to cash payments and to refusing rupiah (PBI, Pasal 17). For non-cash payments it provides administrative sanctions: a written warning, a payment of 1 percent of the transaction value up to Rp1,000,000,000, and/or exclusion from the payment system (Pasal 18); for a price shown in a foreign currency, a written warning (Pasal 19). A transfer in a foreign currency is therefore not shown to be only an administrative matter; we do not say how Bank Indonesia or a court would apply the two texts together. We do not say how these apply to a PPJB or a deed that states a price in a foreign currency. Ask your notary how the price and the payment are to be written.

Money from abroad: residents may freely hold and use foreign exchange, but when it is used for a transaction inside Indonesia the rule on legal tender applies (UU 24/1999, Pasal 2(1) and (2)). The Act defines a resident by where a person lives or plans to live, for at least one year (Pasal 1 angka 3). Bank Indonesia may ask residents for data on their foreign exchange activity, and they must give it (Pasal 3(1) and (2)). The detail is in Bank Indonesia regulations; the reporting by banks and the papers a customer must give the bank for a transfer abroad are on the page on bank accounts, section Reports to Bank Indonesia and papers for sending foreign currency abroad. Keeping money in a foreign currency deposit at a bank is exempt from the rupiah rule (UU 7/2011, Pasal 21(2)(d)); the rule applies to paying the price.

Are you a resident for the purposes of Bank Indonesia's rule (domiciled, or planning to be domiciled, in Indonesia for at least one year), or a non-resident? If a non-resident, does the bank treat the loan as consumer credit in Indonesia under PADG 11/2024 Pasal 47(1)(d), or under another exception? What permit do you hold and for how long (see the page on visas and stay)?

Which land right does the property sit on, and how long does it still run compared with the term of the loan offered?

Can that right carry a Hak Tanggungan? Is the land Hak Pengelolaan land, so that its holder must approve? Will the lender register the Hak Tanggungan at the land office through a PPAT?

Is the property already mortgaged? Ask for the certificate, and for proof that any earlier Hak Tanggungan has been deleted (roya).

For a lease: is the land mortgaged, has the lender consented in writing to the lease, and does the Hak Tanggungan deed contain a promise to vacate or cover a building you own?

For a developer's project: what does the PPJB say about the price, the way it is paid, and any security the developer has given over the land or the building?

Is every price, in the PPJB, the deed and each receipt, stated in rupiah, and how is a payment from abroad converted and receipted?