What Happens to Your Property, Lease and PT PMA Shares in Indonesia When You Die?

Updated: 5 November 2026. This guide provides general information; cross-border succession requires advice on your particular family, assets and applicable laws.

A villa near Senggigi, a long lease in Kuta Lombok and shares in a tourism company might all appear on your personal asset list. But when you die, they will not necessarily follow the same inheritance process.

The starting point is to identify what you actually own: a registered land right, contractual lease rights, company shares, or money owed to you. Then establish who inherits, whether those heirs may legally hold the asset, and what documents are needed.

Why there is no single inheritance rule for every foreigner

Indonesia has civil, Islamic and customary inheritance frameworks. Cross-border estates also raise questions about foreign law, jurisdiction and recognition of documents. Nationality can affect the applicable succession law, while Indonesian rules remain central to rights over Indonesian land. [1]

An adviser should establish:

• Your nationality, religion and relevant domicile or residence.
• Whether your marriage is legally recognised and what property arrangement applies.
• Which assets belong to you, your spouse or a company.
• Your heirs’ nationality, age and location.
• Whether you have wills, and where they were executed.

Religion can affect heirship and testamentary freedom where Islamic inheritance rules apply. Civil-law rules can also protect certain heirs against being excluded by a will. These systems should not be treated as interchangeable choices. [2, 3]

Different assets require different succession plans

Inheritance is not a shortcut around ownership restrictions. The estate receives only the right the deceased actually held, for its remaining term and subject to its conditions.

Direct property rights: focus on eligibility and registration

Indonesian law distinguishes several land rights. A foreign individual cannot simply inherit every category of land title and keep it indefinitely.

The Basic Agrarian Law states that only Indonesian citizens can hold Hak Milik. A foreign heir who receives Hak Milik through inheritance without a will, or because of marital community property, must release that right within one year; otherwise it reverts to the state, subject to other parties’ rights. [4]

Foreigners domiciled in Indonesia may hold eligible residential rights, including Hak Pakai, subject to immigration, property and implementing rules. Current regulations also address inheritance of residential property by foreigners and require the relevant immigration documents for foreign heirs. [5, 6]

For any registered property interest, check:

1. The exact title shown on the land certificate.
2. The registered holder.
3. The remaining term and extension status.
4. The heir’s nationality and eligibility.
5. Mortgages, disputes, blocks or other encumbrances.
6. The documents needed to register the transfer or dispose of the interest.

Do not describe a nominee arrangement as foreign ownership. If land is registered in another person’s name, the deceased foreigner may have contractual claims rather than a registered land right. Those claims can be difficult to value, prove and enforce after death.

Leasehold: the contract determines what survives

Many foreign-owned villa projects in Lombok use long-term leases rather than registered ownership. What passes to heirs is therefore the deceased’s contractual position, not the land itself.

Review the executed lease for:

• A clause confirming that rights and obligations bind heirs or successors.
• Assignment, transfer and subletting restrictions.
• Notice requirements after death.
• Whether landlord consent is required.
• Renewal options and deadlines.
• Ownership of villas, fixtures and improvements during and after the term.
• Default and termination provisions.
• Dispute-resolution language and governing law.

A 25-year lease with ten years remaining does not become a new 25-year term on inheritance. The estate normally receives the remaining contractual benefit, subject to the lease.

Also check practical continuity. Who can access the property, manage guests, insure the buildings, pay rent and prevent default while succession documents are prepared? A valuable lease can be damaged if no one has authority to act.

PT PMA shares: heirs inherit shares, not the company’s assets

A PT PMA is a separate legal entity. If you own shares in a company that owns a villa, the company continues to own the villa after your death. Your estate deals with your shares.

Indonesia’s Company Law states that shares are movable property and may be transferred. A transfer must be recorded through the required deed and shareholder-register process, with notification to the Minister. The articles of association may impose conditions. [7]

The practical process can involve:

• Evidence of death and heirship.
• A foreign will, probate document or inheritance certificate.
• Legalisation or apostille and sworn translation of foreign documents.
• A deed or notarial instrument used for the share transfer.
• Updating the shareholder register.
• Updating the company’s corporate records and Ministry data.
• Reviewing beneficial-ownership records and OSS licensing information.

Foreign investment rules must also be checked. If an heir is foreign, the company’s business classification and capital structure must remain compatible with foreign ownership. A transfer that creates an impermissible structure may require restructuring or sale rather than simple registration.

Management does not pass automatically with share ownership

Shareholder, director and commissioner are different roles.

An heir may ultimately inherit shares but does not automatically become director or gain immediate power to use the company bank account. The company may need a shareholders’ resolution, notarial deed and corporate update before a replacement director can act.

This creates a major continuity risk for companies with one foreign owner-director. Consider:

• Whether the company still has an authorised director able to act.
• Who controls banking tokens, accounting records and tax access.
• How urgent payroll, tax and licence filings will continue.
• Whether the articles of association address death or incapacity.
• Whether a shareholders’ agreement contains succession or buy-sell provisions.

A succession plan should keep the company operational without giving informal access to people who lack legal authority.

Shareholder loans are separate estate assets

If you lent money to your PT PMA, the outstanding loan may be an asset of your estate even if you also owned the shares.

The estate may inherit:

1. The shares, representing ownership and control rights.
2. The loan receivable, representing money owed by the company.

These should not be merged casually. Preserve:

• The signed loan agreement.
• Bank-transfer evidence.
• The company ledger and outstanding balance.
• Interest and repayment terms.
• Any tax documentation.
• Board or shareholder approvals where relevant.

If the records describe funding inconsistently as capital, an advance and a loan, heirs may face disputes over whether repayment is due.

Foreign wills and Indonesian documents

A foreign will can be relevant, but it is not automatically sufficient for every Indonesian asset or registration step.

The process may require original or certified documents, apostille or consular legalisation depending on the document and country, sworn Indonesian translations, and local evidence of heirship. Indonesia’s accession to the Apostille Convention simplified authentication for covered public documents, but apostille does not determine substantive inheritance rights or guarantee that a document satisfies every registry requirement. [8, 9]

Avoid creating multiple wills without coordination. An Indonesian will and a foreign will can coexist in some plans, but inconsistent revocation clauses or asset descriptions can create conflict.

Marriage and joint-property questions come first

Before distributing an estate, determine which property belonged to the deceased.

Indonesian marriage law generally recognises jointly acquired marital property, while inherited or gifted property may remain separate unless the parties determine otherwise. A marriage agreement may alter the arrangement. [10]

For cross-border couples, establish:

• Where and when the marriage was registered.
• Whether there is a prenuptial or postnuptial agreement.
• Which spouse funded the asset.
• Whose name appears on the land, lease, shares and loan documents.
• Whether the asset is joint, separate or company-owned.

Succession planning based only on the name shown on one contract can therefore be incomplete.

Tax and administration costs

Indonesia provides an income-tax exemption for qualifying inheritance, but the exemption does not mean the process is free of tax, duty or administrative cost. [11]

Depending on the asset and transaction, the estate or heirs may need advice on:

• Land and building rights acquisition duty.
• Income tax treatment if an asset is sold.
• Notary, land deed official, translation and registration fees.
• Company tax and accounting for loan repayment or asset disposal.
• Tax consequences in the deceased’s or heir’s other country.

Obtain tax advice before choosing between retaining, transferring and selling an asset.

A practical succession-planning checklist

1. Build an accurate asset register

List certificates, leases, shares, shareholder loans, bank accounts, vehicles and valuable equipment. Record ownership, location, term, value and supporting documents.

2. Review every contract

Check survivorship, assignment, consent, default and notice clauses in leases, shareholder agreements and loans.

3. Map the family and governing laws

Record nationality, religion, marriage status, children, dependants, residence and existing wills. Obtain coordinated Indonesian and home-country advice.

4. Protect company continuity

Avoid a structure in which one deceased director is the only person able to operate the company. Keep corporate, banking, tax and OSS records organised and secure.

5. Prepare documents for cross-border use

Identify which documents require notarisation, apostille or legalisation, and sworn translation. Make sure relatives know where originals are stored.

6. Review the plan after major changes

Update the plan after marriage, divorce, birth, relocation, naturalisation, a new lease, property acquisition, funding round or restructuring.

Common mistakes

• Assuming a foreign will overrides Indonesian land restrictions.
• Calling a lease “ownership” and failing to review its succession clauses.
• Believing heirs automatically become company directors.
• Forgetting that shareholder loans are distinct from shares.
• Using nominee structures without understanding the enforcement risk.
• Letting corporate filings, licences or lease payments lapse during administration.
• Preparing separate wills in different countries without coordinating revocation and asset scope.

Frequently asked questions

Can my foreign children inherit my villa in Indonesia?

They may inherit the legal interest you actually hold, but whether they may retain it depends on the title, their eligibility and Indonesian law. A company-owned villa remains owned by the company; heirs generally deal with shares. A leased villa involves the lease contract.

Does my overseas will control my PT PMA shares?

It may provide evidence of your intended succession, but Indonesian corporate transfer requirements, the articles of association, mandatory-heirship issues and foreign-investment rules still need to be satisfied.

Will my lease end when I die?

Not necessarily. The answer depends on the lease wording and applicable law. Review whether it binds heirs or successors, permits assignment and requires landlord consent or notice.

Should I put property in a PT PMA for inheritance planning?

A PT PMA can create continuity because the company owns its assets while shares pass through the estate. But it also brings capital, licensing, tax, accounting and governance obligations. It should be used for a genuine business and lawful investment structure, not merely as a substitute for personal ownership.

Final perspective

The question is not simply, “Who gets my Indonesian assets?” It is:

1. What legal right do I hold?
2. Which inheritance rules apply?
3. Can the heir legally retain that right?
4. What registrations and corporate actions are required?
5. Who keeps the asset or company functioning during the process?

For foreigners in Lombok, effective succession planning coordinates inheritance law, land rules, lease drafting, corporate governance, immigration status and cross-border documents. Start while the records are clear and the relevant people can still make decisions.

Sources and further reading

1. Library of Congress, Indonesia: Inheritance Laws: https://tile.loc.gov/storage-services/service/ll/llglrd/2019670915/2019670915.pdf
2. Indonesian Compilation of Islamic Law, inheritance provisions: https://bphn.go.id/data/documents/91uu007.pdf
3. Indonesian Civil Code, Book II succession provisions: https://www.refworld.org/legal/legislation/natlegbod/1847/en/14863
4. Law No. 5 of 1960, Basic Agrarian Law, Articles 20–21: https://peraturan.bpk.go.id/Details/51310/uu-no-5-tahun-1960 and https://faolex.fao.org/docs/pdf/ins3920.pdf
5. Government Regulation No. 18 of 2021, land rights and foreign residential ownership: https://peraturan.bpk.go.id/Details/161848/pp-no-18-tahun-2021
6. Ministry of Agrarian Affairs/BPN Regulation No. 18 of 2021, procedures for foreign residential ownership: https://peraturan.bpk.go.id/Details/210613/permen-agrariakepala-bpn-no-18-tahun-2021
7. Law No. 40 of 2007 on Limited Liability Companies, as amended, share-transfer provisions: https://peraturan.bpk.go.id/Details/39965/uu-no-40-tahun-2007 and https://www.asean.org/wp-content/uploads/2016/06/Indonesia-Company-Law-english.pdf
8. Presidential Regulation No. 2 of 2021 on Indonesia’s accession to the Apostille Convention: https://peraturan.bpk.go.id/Details/161615/perpres-no-2-tahun-2021
9. HCCH Apostille status table and Indonesia information: https://www.hcch.net/en/instruments/conventions/status-table/?cid=41 and https://www.hcch.net/en/states/authorities/details3/?aid=1040
10. Law No. 1 of 1974 on Marriage, Articles 35–37, as amended: https://peraturan.bpk.go.id/Details/47406/uu-no-1-tahun-1974
11. Directorate General of Taxes, inheritance income-tax exemption information: https://www.pajak.go.id/id/artikel/warisan-bukan-objek-pajak-penghasilan