How to LEGALLY Buy Property in KEK Sanur by 2027: A Step-by-Step Foreign Buyer’s Guide

How to LEGALLY Buy Property in KEK Sanur by 2027: A Step-by-Step Foreign Buyer’s Guide

KEK Sanur is a priority investment zone. This guide outlines the legal frameworks and practical steps for foreign buyers to acquire property within KEK Sanur by 2027, focusing on long-term secure ownership structures.

1. Understanding KEK Sanur’s Investment Landscape

KEK Sanur is a significant development, positioned as a key driver for Indonesia’s healthcare and wellness tourism sector. Its strategic importance is underscored by its designation as one of three KEKs most relevant for investors today, alongside Nongsa (digital) and Gresik (heavy industry).

• Scale and Investment: The zone encompasses a total planned land area of 41.26 hectares, with a total planned investment of approximately IDR 10.2 trillion (public + private). This substantial capital expenditure program is largely committed, ensuring robust infrastructure development.
• Economic Impact: KEK Sanur is projected to create 43,647 jobs when fully operational, contributing significantly to local and national economic growth.
• Market Growth: Indonesia’s health & wellness sector is among the fastest-growing consumer sectors, with an estimated Compound Annual Growth Rate (CAGR) of 10–15% in the mid-2020s. The government targets repatriating 4–8% of Indonesians who currently seek treatment abroad (equivalent to 123,000–240,000 patients annually) to facilities in Sanur by 2030. This structural growth path will drive demand for hospitals, clinics, hotels, and ancillary services within the zone through 2026–2027.
• Macro Positioning: Bali is actively promoted as a global investment destination, with KEK Sanur highlighted as a new magnet for international investors, particularly in medical tourism. Events such as the Bali Investment Challenge 2026 explicitly showcase KEK Sanur as a success story and priority project, indicating strong government backing and pipeline visibility.

For 2026–2027, investors can anticipate a multi-billion-rupiah zone-level CAPEX program and a double-digit-growth addressable market in healthcare, wellness, and experiential travel.

2. Legal Frameworks for Foreign Property Ownership in Indonesia

Foreigners cannot own freehold (Hak Milik) land directly in Indonesia. However, several robust legal structures facilitate long-term control and use of property. In KEKs, additional incentives and streamlined processes are often available.

a. Hak Guna Bangunan (HGB) – Right to Build

HGB is the most common and secure title for foreign investment. It grants the right to construct and possess buildings on state-owned or Hak Milik land for a specified period. In KEKs, the initial term and extensions can be generous.

• Initial Term: Typically 30 years.
• Extension: Renewable for 20 years.
• Renewal: Further renewable for 30 years.
• Total Potential Term: Up to 80 years.

HGB titles are mortgageable and can be transferred, providing a strong basis for property development and investment.

b. Hak Pakai (HP) – Right to Use

HP grants the right to use and/or collect produce from land owned by the state or another party. This title is often used for residential purposes by foreigners.

• Initial Term: Typically 30 years.
• Extension: Renewable for 20 years.
• Renewal: Further renewable for 30 years.
• Total Potential Term: Up to 80 years.

HP can be converted to HGB under certain conditions, particularly for commercial developments.

c. Foreign-Owned Company (PT PMA) Structure

The most secure and recommended method for foreign investors, especially for commercial or investment properties, is to establish a Foreign-Owned Company (PT PMA) in Indonesia. A PT PMA can hold HGB titles directly.

This structure offers:

• Direct Ownership: The PT PMA, as an Indonesian legal entity, can hold HGB titles.
• Asset Protection: Separates personal assets from business liabilities.
• Operational Control: Provides a clear legal framework for business operations within the KEK.
• Tax Benefits: KEKs often offer fiscal and non-fiscal incentives for PT PMAs, including tax holidays, tax allowances, and simplified licensing.

3. Step-by-Step Acquisition Process by 2027

The acquisition process involves several stages, from due diligence to title registration.

a. Initial Consultation and Due Diligence

Engage with a reputable property and investment advisory firm like Kek Sanur Investment. This initial step involves:

• Investment Strategy: Define your investment objectives (e.g., medical facility, hotel, wellness centre).
• Market Analysis: Review specific opportunities within KEK Sanur.
• Feasibility Study: Assess the viability of your project given KEK Sanur regulations and market demand.
• Legal Review: Conduct thorough due diligence on potential land parcels, including zoning, ownership history, and any encumbrances.

b. Establishing a PT PMA (If Applicable)

For commercial ventures, establishing a PT PMA is crucial:

• Capital Requirements: Meet the minimum investment and paid-up capital requirements for PT PMAs (these vary based on business classification, generally starting from IDR 10 billion for investment plans and IDR 2.5 billion for paid-up capital).
• Business Classification (KBLI): Register your PT PMA with appropriate KBLI codes relevant to healthcare, wellness, hospitality, or supporting services within KEK Sanur.
• Licenses and Permits: Obtain necessary business licenses (e.g., NIB, Izin Usaha) through the Online Single Submission (OSS) system, which is streamlined within KEKs.

c. Land Acquisition

Once your legal entity is established, proceed with land acquisition.

• Identify Property: Pinpoint suitable land parcels within KEK Sanur that align with your project requirements.
• Negotiation: Agree on terms and pricing with the land owner or developer. Public sources do not list per-sqm prices for KEK Sanur land; these are negotiated privately.
• Binding Agreement: Sign a Sale and Purchase Agreement (PPJB) or similar preliminary agreement.

d. Title Registration and HGB Issuance

The final stage involves securing the land title under your PT PMA.

• Notary Involvement: All land transactions must be executed before a public notary (PPAT). The notary will prepare the Deed of Sale and Purchase (AJB).
• Tax Payments: Pay applicable taxes, including Land and Building Acquisition Duty (BPHTB) and Income Tax (PPh) on the sale.
• Title Registration: The notary will register the AJB with the National Land Agency (BPN) to transfer the HGB title to your PT PMA.
• HGB Certificate Issuance: BPN will issue the new HGB certificate in the name of your PT PMA.

2027 note: By 2027, with KEK Sanur’s infrastructure development nearing completion and operationalisation of key medical facilities, the availability of prime land parcels for new large-scale projects may become more limited, making early engagement critical for securing strategic locations.

4. Typical Price Ranges (Investment & Product)

Public sources do not list per-sqm prices for land within KEK Sanur. Pricing is subject to negotiation, location within the zone, land designation (e.g., commercial, hospitality), and infrastructure readiness. However, based on the overall planned investment value of ~IDR 10.2 trillion across 41.26 hectares, the zone represents a significant capital injection.

For investors considering projects, typical investment ranges for specific product types are:

These ranges are approximate and depend heavily on scale, fit-out specifications, and land acquisition costs, which are determined via private negotiation. Investors should budget for significant capital expenditure, aligning with the multi-billion-rupiah zone-level CAPEX program.

5. Fiscal and Non-Fiscal Incentives in KEK Sanur

KEKs are designed to attract investment through various incentives. These can significantly enhance project viability.

a. Fiscal Incentives

• Tax Holidays: Reduced or zero Corporate Income Tax (CIT) for a specified period, depending on the investment value and sector.
• Tax Allowances: Reductions in taxable income, accelerated depreciation, and other tax benefits.
• Import Duty Exemption: For capital goods and raw materials used in KEK-approved projects.
• VAT Exemption: For goods and services within the KEK.

b. Non-Fiscal Incentives

• Streamlined Licensing: Faster and simplified permit processing through the OSS system.
• Immigration Facilities: Easier visa and work permit processes for foreign employees.
• Land Use Flexibility: Specific zoning regulations tailored to support the KEK’s objectives.

These incentives are subject to specific criteria and government regulations, which an investment advisory firm can help navigate.

6. Key Considerations for 2026–2027

As KEK Sanur progresses towards full operationalisation by 2027, several factors become increasingly important for investors.

• Early Engagement: Securing prime locations and finalising legal structures early is advantageous as demand and land values are expected to appreciate.
• Sector Alignment: Focus on projects that align with the KEK’s core focus on healthcare and wellness tourism to maximise incentive eligibility and market demand.
• Local Partnership: While not legally required for PT PMA, understanding local market dynamics and potential partnerships can be beneficial.
• Regulatory Updates: Stay informed of any changes in KEK regulations or investment policies, which can occur periodically.

Navigating the legal and investment landscape of KEK Sanur requires expertise. For detailed guidance on property acquisition and investment opportunities within this strategic zone, book an investment consultation on WhatsApp with Kek Sanur Investment.