Many people decide they are going to start their dream business of renting luxury villas in Bali, whose hopes come crashing down when they discover the complexities of Indonesian law as they apply to property purchases in Bali. The truth of the matter is Indonesian law forbids foreigners from outright ownership of property in that country and given that Bali is part of Indonesia, that law applies there too.
This begs the question “If Indonesian law forbids foreigners from purchasing property in Bali, how can any foreigner own a villa In Bali?”. Well, the law as it applies in Bali forbids outright ownership of property by foreigners, but that does not they cannot enter into legal arrangements which would in effect allow them to own and run a Bali villas rental business.
As you will discover as you read on, there are various categories of property ownership in Indonesia, which means that in Bali you can obtain either ownership or the use of a villa to rent it out to holidaymakers.