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Ever dreamed of owning a villa in Bali but worried about the high upfront cost? You’re not alone. Many foreigners wonder if buying property in Indonesia with a loan is even possible.
The truth is, getting an Indonesian property loan isn’t easy—but it’s not impossible either.
Mortgages in Bali have strict rules, yet there are still solid ways to finance your dream villa. How?
Now, we’ll walk you through all the options: local bank loans, PT PMA company loans, expat loans in Indonesia, and even developer financing. Let’s unlock the best path for you to invest in Bali property.
Key Takeaways
| Financing Option | Key Requirements | Typical Down Payment | Pros | Cons |
|---|---|---|---|---|
| Local Bank Mortgage | KITAS/KITAP, Proof of Income | 30% – 50% | Build local credit, leverage capital | High interest, strict approval |
| PT PMA Loan | PT PMA company setup | Varies | Secure ownership, business use | Costly, complex setup |
| Indonesian Property Loan (IPL) | Bank approval, non-Indonesian citizen | 40% minimum | Made for foreigners, multi-currency | Short term (10 yrs), high down payment |
| Developer Financing | Deal directly with developer | 10% – 30% | Easier approval, flexible terms | Only for new projects |
Free Download: Bali Property Investment Guide 2025
Disclaimer: This article is for information only, not financial advice. Since the rules in Indonesia change often, we strongly recommend always talking to a trusted lawyer or financial advisor before making decisions.
Can Foreigners Get a Loan in Bali?
Source: American United Federal Credit Union
Yes, foreigners can apply for a loan or mortgage in Bali. But the rules are stricter, down payments are higher, and only certain property types qualify.
Article 186 of Agrarian and Spatial Planning/National Land Agency Regulation Number 18/2021 states that only freehold property can be mortgaged. Leaseholds are not accepted as collateral.
Banks usually cover 50–70% of the property’s value. Payments depend on your income and background. Still, Indonesian banks are careful when lending to foreigners, since there’s always a risk that someone might leave the country.
Don’t worry—there are ways around this. For example, using a PT PMA (foreign-owned company) or applying for a specialized expat loan in Indonesia makes banks more open to lending.
Why a Loan Can Help Your Investment
Getting a mortgage in Bali isn’t just about owning property—it’s about leverage. With financing, you can buy more than one villa and grow your returns faster.
For example, Emma buys a leasehold villa for $200k with a 25-year term. She still has $50k left to invest. But since leasehold property can’t be used as collateral, Emma has to wait many years before she can purchase another property.
Daniel, on the other hand, purchases a freehold villa for the same $200k. With ownership rights, he is able to take out a mortgage, borrow $150k, and immediately buy a second property. After 15 years, Daniel can repeat the same strategy.
The result? Daniel now owns 3-4 freehold properties, while Emma still has just 1 leasehold with only 10 years left on the contract. With property prices rising, Daniel’s portfolio is worth more than triple Emma’s investment.
Read More: Freehold vs Leasehold: Which Ownership Type is Right for You?
Requirements for Expats to Get a Mortgage in Indonesia
To qualify for a mortgage in Indonesia, expats need to meet the following requirements:
- All nationalities except African territories
- Employees: 2+ years working (including past jobs)
- Self-employed: 4+ years in industry
- Age: 21–57
- Minimum income: IDR 25 million/month
- Loan term: up to 25–30 years
Documents needed:
- KITAS/KITAP/KIMS/KTP WNA
- NPWP + annual tax return
- Marriage/birth certificate, prenup if any
- Reference letter, company legality
- Bank account statements
- Property collateral document
For self-employed: notary act (Akta PT), trade license (SIUP/NIB), domicile license (SKTU), etc.
How to Get a Loan in Indonesia as Foreigner
Indonesian property loan for foreigners may seem overwhelming, but breaking it down into steps makes the process easier to follow. Here’s what you need to do:
- Pick the property you want to buy.
- Look for banks that give mortgages to foreigners, like HSBC Indonesia, Permata Bank, or Commonwealth Bank Indonesia.
- Collect all the required documents, such as your KITAP, proof of income, property details, and collateral papers.
- Apply for the mortgage at your chosen bank with the full set of documents.
- The bank reviews your application, which may include a property check and credit review.
Read More: How to Buy Property in Bali for Foreigner Safely (2025)
Minimum Property Price for Expats
According to Agrarian and Spatial Planning/National Land Agency Regulation Number 1241/2022, foreigners must buy above a certain minimum price when applying for a mortgage in Indonesia:
| Province | Minimum Property Value (IDR) – Site House | Minimum Property Value (IDR) – Apartment |
|---|---|---|
| Bali | 5 billion | 5 billion |
| Jakarta | 5 billion | 3 billion |
| Banten | 5 billion | 2 billion |
| West Java | 5 billion | 2 billion |
| Central Java | 5 billion | 2 billion |
| East Java | 5 billion | 2 billion |
| Yogyakarta | 5 billion | 5 billion |
| West Nusa Tenggara | 3 billion | 1 billion |
| North Sumatera | 2 billion | 1 billion |
| East Kalimantan | 2 billion | 1 billion |
| South Sulawesi | 2 billion | 1 billion |
| Riau | 2 billion | 1 billion |
| Other Provinces | 1 billion | 1 billion |
Financing Options for Foreigners Buying Property in Bali
There are several ways for foreigners to get an Indonesian property loan and finance property purchases. Each option has its own rules, advantages, and downsides.
1. Cash Purchase
The simplest way is to buy with cash. It’s quick, straightforward, and avoids all the bank paperwork.
If you have the funds ready, cash payments also give you strong bargaining power with sellers and developers.
2. Local Bank Mortgage
Some Indonesian banks do offer mortgages to foreigners, but it’s the toughest option. Banks in Indonesia that are known to offer loans to foreigners include Commonwealth Bank and Permata Bank.
The challenge is meeting strict requirements, especially proving long-term commitment to Indonesia. That’s why a valid stay permit is a must.
3. PT PMA Company Loan
For serious investors, this is considered the best path. By setting up a foreign-owned company (PT PMA), the property is owned under a local legal entity.
This makes banks more confident in lending since they’re dealing with a company instead of an individual.
Setting up a PT PMA usually takes 2–3 months with help from legal consultants and notaries, but once in place, it allows better financing terms and more opportunities.
4. Indonesian Property Loan (IPL) & Specialized Mortgages
To meet rising demand, some banks now provide special loan products for expats. One example is the Indonesian Property Loan (IPL).
In June 2025, Permata Bank also launched a mortgage program for foreigners called Permata KPR iB IMBT WNA.
These options are ideal for foreigners who don’t qualify for a regular bank mortgage but don’t want to set up a PT PMA.
5. Developer Financing
More developers now offer in-house installment plans, especially for off-plan projects. This option lets you pay in stages as construction progresses.
It’s easier to qualify for compared to bank loans, and the terms are often more flexible.
FAQ
1. How much can I borrow to buy a property in Indonesia or Bali?
Foreign buyers can usually borrow between 50% and 70% of the property’s value.
2. What is the mortgage rate in Bali?
You can aim for an investment that gives around 10–15% return each year, earning from the difference.
3. How much deposit do I need to buy a house in Bali?
Most of the time, you’ll pay about 10% as a deposit when signing the agreement, and this money is kept safe by the notary or agent.
4. How much is property tax in Bali?
Property tax is 0.5% of the property’s assessed value, while land tax depends on the region, usually between 0.1% and 0.2%.
Conclusion: Think Carefully Before Getting a Loan in Indonesia
Getting an Indonesian property loan for foreigners may take effort, but it’s definitely possible.
If you’re a long-term expat looking for an easier path, options like the Indonesian Property Loan (IPL) or developer financing might be the way to go.
For serious investors, setting up a PT PMA is usually the smarter choice, as it offers more security and flexibility in the long run.
Whatever option you choose, it’s always best to work with a trusted real estate agent and legal team—like Ilot Property. We’ll guide you step by step and help you find the financing option that fits your goals.
Got questions about getting a loan in Bali? Drop us a message—we’ll guide you through it, no cost, no pressure.
