Stonehard PREMIER by LUXIMMO steps into the real estate market on the island of Bali, Indonesia - everything you need to know for a successful investment on the island of dreams

We are pleased to inform you that from the beginning of the new year, Stonehard PREMIER by LUXIMMO will offer its clients a comprehensive service related to purchasing property on the island of Bali and its management, which will turn the purchase into a profitable investment through long-term and short-term rentals. In the following lines, we will reveal the main factors for the real estate boom in Indonesia, what the laws for property purchase are, and how we can assist you throughout the process. Get ready for an exciting country where time flows with the rhythm of ocean currents, and nature and culture are what make visitors fall in love and even choose it as their permanent home.

Island of Bali - where culture, tranquility, and relaxation meet

Indonesia is located in Southeast Asia and is situated between two large oceans - the Indian and the Pacific. The climate is influenced by the Equator, which passes through the country and brings with it two seasons - dry and rainy. The average annual temperature ranges between 26 and 30 degrees, with almost no temperature fluctuations, making it a country of eternal summer. Indonesia has an extremely rich history and diverse cultures scattered across the islands, but the most popular among them is undoubtedly the island of Bali.

People do not travel to Bali just for the beaches – they go for the lifestyle. The island combines opportunities for relaxation, hundreds of Buddhist temples, activities, and social dynamics in a way that few places in the world can offer. That is why many visitors return again and again, and a significant number of them choose to stay for weeks or even months. The main reasons are the feeling of peace, seclusion, and complete detachment from the fast-paced lifestyle that Bali offers.

One of the biggest advantages of the island is its exceptional natural diversity. Within one day, you can witness the sunrise at Mount Batur volcano, spend the afternoon on a surfing beach, and end your day amidst the jungle and rice terraces. Despite the rapid development of tourism, Bali manages to maintain its balance by offering both lively areas and many quiet resorts and secluded beaches. The wellness and spa culture on the island is world-renowned – the treatments and massages here are among the best in the world and are an integral part of the experience for every visitor.

Excellent investment opportunity

The island of Bali was visited by over 15 million tourists in 2024, and although there is no official statistic yet, in 2025 they are even more. The huge number of visitors implies high demand for short-term rentals, and the limited supply in popular resort towns like Seminyak, Canggu, Ubud, Uluwatu, and Berawa makes rental prices very high.

Besides tourists, the island of Bali is also a popular destination for freelancers and digital nomads who choose to work from exotic places that offer a peaceful environment and diverse entertainment opportunities. This is also one of the main factors why medium- and long-term rentals on the island are in high demand.

At the same time, the Indonesian government is investing in developing the island's infrastructure, which in the long term will also increase property prices, as the destination becomes more accessible.

Purchasing property in Bali: What is leasehold and what should we know about it?

Unlike many European markets, foreign investors in Indonesia cannot own land in freehold form. The most common and established model for real estate investment in Bali is leasehold – a long-term right of use, usually for a period between 25 and 30 years, with the possibility of extension for another 20–30 years. During this period, the investor has full rights to use the property, rent it out, and generate income from it.

The main risks with leasehold investments are not related to the model itself but to improperly drafted contracts, lack of clearly regulated extension clauses, or working with unreliable partners. That is why the key to a secure investment is professional legal and market support for the transaction.

Here we come in - Stonehard PREMIER has an experienced team of local experts on the island of Bali – lawyers, financiers, and licensed brokers who ensure that all contracts are flawless, the terms and conditions for renewal are clearly fixed, and the investment is protected in the long term. In this way, the leasehold model becomes not a risk but a working and profitable tool widely used by investors worldwide.

Renting out and PT PMA – what every investor should know

For renting out property in Bali to be legal and sustainable, it is important to choose the right legal and operational structure according to the specific type of investment. Establishing your own company in Indonesia is not mandatory for every purchase, especially when it comes to leasehold properties that can be owned by an individual.

In such cases, renting out and accounting for income can be done through an already registered local company that manages the property, invoicing, and all related administrative and tax processes. For an agreed management fee – usually a percentage of the gross income – the investor receives a fully legal, transparent, and working scheme for generating income without the need for their own corporate structure.

Establishing a PT PMA (Penanaman Modal Asing) – a foreign investment company, is more often legally tied to investments in freehold properties or cases where a foreign citizen acquires land rights and develops independent business activity. In these situations, PT PMA plays a key role in the lawful ownership, management, and protection of the investment.

That is why consultation with a professional team experienced in the local market is crucial. The right structure – whether through direct ownership, a management company, or your own PT PMA – guarantees peace of mind, transparency, and maximum profitability. Our team can also offer full management and maintenance of the property with a person on site, so you only have to enjoy the benefits of passive income.

Choosing property in Bali

Having clarified the legal issues, the most important part of the process remains, namely choosing the right property. To make the process as easy as possible, our team has selected newly built properties from proven investors with experience in the field and successfully completed and functioning projects, so you do not have to worry about deadlines or quality of execution of the residences. We can also offer video tours, meetings with investors, and full transparency in the process both online and on site on the island of Bali.

Here you can also view some of our offers for newly built properties:

Azoria Living - Two-room apartments in the first paddle wellness resort in Uluwatu, Bali

Azoria Living 2 - Continuation of Azoria Living, where you will find studios, two-room, and three-room apartments

Riverstone Villas 2.0 - Fully furnished three-bedroom houses in Tumbak Bayuh

The Linea - Luxury complex with four-bedroom villas in Pererenan