What a listing means by freehold and leasehold

Freehold in Bali is Hak Milik, the full ownership title. The Basic Agrarian Law (Law 5/1960, art. 21) reserves it for Indonesian citizens. A foreigner cannot hold it, and neither can a dual national.

Leasehold is a lease: a contract giving the use of land or a villa for a stated period in return for rent (Civil Code, art. 1548). It is not a registered land title. It is what most foreign buyers in Bali actually buy.

Where a listing on this site states its tenure, it shows which one it is. A freehold listing is legally open to an Indonesian buyer, or to a foreigner only through one of the routes below.

Freehold through a nominee is void

Any act meant to pass Hak Milik to a foreigner, directly or indirectly, is void by law. The land falls to the State, and money already paid cannot be reclaimed (Law 5/1960, art. 26(2)).

The Supreme Court instructed all courts in 2020 that the owner of land is the person named on the certificate, even if a foreigner paid for it (SEMA 10/2020, civil chamber, point 4). A side agreement with an Indonesian nominee does not make the foreigner the owner.

The same rule applies to companies: an agreement that shares are held on behalf of someone else is void (Law 25/2007, art. 33).

Leasehold: what the contract gives you

The Civil Code sets no maximum lease term. Terms of 25 to 30 years are common in Bali, but that is market practice, not law. The length, the rent and any extension depend entirely on the contract.

A written lease ends automatically when its term expires (art. 1570). It does not end when the landlord or the tenant dies (art. 1575), and a sale of the land does not break it unless the lease itself allows that (art. 1576).

An option to extend is only as strong as its wording. Read how the extension price is set, who must agree, and what happens to the buildings when the lease ends.

Hak Pakai: the title a foreigner can hold

A foreigner with Indonesian immigration documents may own a house on Hak Pakai, a registered right of use (Government Regulation 18/2021, arts. 49, 69 and 71). If the house is on Hak Milik or HGB land, the title is converted to Hak Pakai on purchase (Ministerial Regulation 18/2021, art. 187).

The term depends on the land beneath. On State land it is 30 years, extendable by 20 and renewable by 30. On Hak Milik land, which is how most Bali villas are held, it is 30 years, renewable only by a new deed with the landowner (Government Regulation 18/2021, art. 52).

The limits: a house in the luxury category, one plot per person or family, and at most 2,000 m² (Ministerial Regulation 18/2021, art. 186). In Bali the minimum price is Rp 5 billion for a house and Rp 2 billion for an apartment (Ministerial Decree 1241/2022).

Through a company: a PT PMA holding HGB

HGB, the right to build, is open only to Indonesian citizens and Indonesian companies (Law 5/1960, art. 36; Government Regulation 18/2021, art. 34). A foreign-owned company set up in Indonesia, a PT PMA, is an Indonesian company and can hold it.

Since October 2025 a PT PMA needs at least Rp 2.5 billion paid-up capital and more than Rp 10 billion of investment per business line and location. For property and accommodation businesses, land and buildings count toward the Rp 10 billion (BKPM Regulation 5/2025, art. 26).

HGB on State land runs 30 + 20 + 30 years; on Hak Milik land it is 30 years, renewable by a new deed (Government Regulation 18/2021, art. 37). A company route suits an operating business, not a private home.

Before you sign

Ask for the land certificate and check whose name is on it. Check the years left on the lease or right, not the term it started with. Have the deed prepared by a notary and land deed official (PPAT), and take independent legal advice.

This note summarises the law as published on 28 September 2026. It is not legal advice, and figures such as minimum prices are set by decree and can change.