Free Indonesia guide: why a will is the wrong way to leave a Bali home

Free guide for British expats in Indonesia

Indonesian land law, rather than your will, decides what your family can keep.

A 19 page guide written for British expats in Indonesia. It covers the Basic Agrarian Law rules that decide what a foreign heir may hold, why land left by will is treated differently from land inherited on intestacy, the three succession systems that run in parallel here, and the UK inheritance tax position. It also walks through the certificate of inheritance process your family would face.

  • 19 pages
  • Updated August 2026
  • No payment details
  • The three Indonesian succession systems, and which applies
  • Hak Pakai, leases, strata title and PT PMA
  • Nominee arrangements and the risk they carry
  • Wills, the central register and transfer taxes

Twenty minutes of reading that could stop a villa passing to the State.

What happens to your estate

With a valid will

The Civil Code prescribes three forms of will: holograph, notarial and secret. The notarial form is the one most expat estates use, because it is made before a public official, the notaris keeps the original, and it goes on to the central register of wills, the Daftar Pusat Wasiat. What a will cannot do is move Indonesian freehold to a foreign heir: Article 26(2) voids the gift and the land falls to the State.

Without a will

Under the Civil Code a surviving spouse inherits alongside the children, taking a share equal to a child's. Which of the three systems reaches an estate depends on the person rather than the asset, and a marriage never registered at the civil registry leaves the survivor with no succession rights in any of them. Intestacy does one thing a will cannot: it is the only route by which a foreigner can lawfully receive Indonesian freehold, with a year to sell under Article 21(3).

Outside your will entirely

Indonesian land follows Indonesian law whatever your will says. A home held on Hak Pakai can be inherited only by an heir who holds Indonesian immigration documents, and an heir who does not qualify has one year to release or transfer the right before it lapses. A nominee arrangement leaves nothing in the estate at all: the certificate is in the nominee's name, the side agreements are void, and a power of attorney ends on death under Article 1813.

With a valid will

Without a valid will

Assets outside the will

Key facts

  • One year A foreigner who acquires Indonesian freehold by intestate succession owns it lawfully and has a year to release or transfer it under Article 21(3). After that it lapses by operation of law and the land falls to the State, with existing mortgages surviving.
  • Article 26(2) The same land left by will produces the opposite result. A gift of freehold to a foreigner is void by operation of law, the land falls to the State, and payments already received cannot be reclaimed, which is why the guide treats a will as the wrong instrument for that one asset.
  • Up to 5% Indonesia has no inheritance tax, estate duty or death duty, but heirs pay BPHTB on acquiring rights over land and buildings, including by inheritance. Article 47 of Law No. 1 of 2022 caps it at 5%, with the rate set by regional by-law and most regions applying the full 5%.
  • One year Why it matters. A foreigner who inherits freehold on intestacy has one year to sell it, and after that the land falls to the State.
  • Article 26(2) Why it matters. The same land left by will produces the opposite result, because a gift of freehold to a foreigner is void by operation of law.
  • Up to 5% Why it matters. There is no inheritance tax, but your heirs pay BPHTB of up to 5% to register inherited land and buildings.

What is inside the guide

Wills and estate planning for British expats in Indonesia How Indonesian land law decides what happens to your villa, why a will can make it worse, and why the UK tax bill follows you. Free download · 2026 edition · 19 pages

Common questions

Can I leave my Bali villa to my children in my will?

Not where it is held as Hak Milik, the Indonesian freehold. Article 26(2) makes a gift of freehold to a foreigner void by operation of law and the land falls to the State, while a foreigner who receives the same land on intestacy holds it lawfully and has a year to sell under Article 21(3). What can pass depends on the legal form the home is held in, which is why the guide starts with an inventory of every certificate.

Can I leave my Bali villa to my children in my will?

Not where it is held as Hak Milik, the Indonesian freehold. Article 26(2) makes a gift of freehold to a foreigner void by operation of law and the land falls to the State, while a foreigner who receives the same land on intestacy holds it lawfully and has a year to sell. What can pass depends on the legal form the home is held in.

Is it really free?

Yes. No payment details, no trial, no catch. The guide shows you how we think before you decide whether to use us for anything.

Will you fill my inbox?

We send the guide, and nothing else unless you tick the box for the email series. Every email in it has an unsubscribe link that works first time.

Is this legal advice?

No. The guide is general information for British expats, written in plain English. Expat Legacy is a will writing service rather than a law firm.

About the author

Jamie Lee, founder of Expat Legacy, has drafted more than 2,000 wills for British expats. He has lived the expat life himself since 2004.

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