Ownership structures in Bali: leasehold, Hak Pakai and PT PMA
Indonesian law does not allow full freehold ownership for foreigners, but there are three legitimate structures, each with its own characteristics.
Leasehold
Leasehold (Hak Sewa)
The most widely used form for foreign investors. You lease the right to use the land and building for an agreed term.
Our leasehold of up to 80 years
The market standard in Bali is 25 to 30 years with an option to extend. Under the new regulations (PP 28/2025) there is no statutory maximum on the term; that is what the parties agree contractually. Leasehold is fast, straightforward and carries no residency requirement.
Where competitors typically stay at the market standard of 30 years, we have negotiated extension options of up to 80 years of leasehold for our projects. At the time of writing this is unique in the market and increases both your return horizon and the saleability of your position to a second leaseholder.
Alternatives
Hak Pakai and PT PMA
Hak Pakai (Right to Use)
A registered right to use land for residential purposes. Term of 30 years, extendable by 20 and then a further 30 years, for a total maximum of 80 years. It requires a valid Indonesian residence permit (KITAS, KITAP or Second Home Visa) and a minimum value of IDR 2 billion for apartments or IDR 5 billion for villas. Especially relevant for those who want to spend longer periods in Bali.
PT PMA (your own company in Indonesia)
A foreign investment company that can hold real estate under HGB ownership for commercial purposes, with a term of 30 years, extendable by 20 plus 30 years. It requires a minimum investment of around IDR 10 billion, formal registration, annual reporting and local bookkeeping. Suitable from two or more projects onwards, or for commercial real estate.
Which structure suits whom
An investment villa for rental without a wish to reside: leasehold is almost always the right choice. Two or more projects or a commercial property: PT PMA becomes attractive. Long stays desired and willing to go through a visa process: consider Hak Pakai. We guide you through all three routes and advise on a per-client basis.
Why Bali Estate Group
Four reasons why investors choose us
Leasehold up to 80 years
We negotiated extension options up to 80 years, where the market standard is 30 years. At the time of writing unique in the market.
Developer and seller in one
No intermediaries. We select the location ourselves, arrange the legal structure and contract the operator.
MĀUA by Swiss-Belhotel
International hotel operator with decades of experience, on our flagship Nova Ocean Resort. Higher occupancy, lower return variance.
Transparent quarterly reporting
Every quarter, insight into revenue, occupancy and return after tax. Verifiable figures instead of empty promises.
As seen on
Experiences
What our investors say
“We first came across Bali Estate Group through the Lotgenoten podcast, where Roy talked about Bali's property market. He immediately came across as trustworthy, knowledgeable and transparent: he not only highlighted the opportunities, but also spoke honestly about zoning, building materials and possible pitfalls. In our conversation with Pierre, virtually all our questions were answered before we even had to ask them, and there was an instant personal click. The Dutch point of contact and short lines of communication are a big plus, and their involvement does not stop once the sale is done: newsletters with professionally edited videos let you follow the construction closely. We wholeheartedly recommend Bali Estate Group to anyone considering investing in real estate in Bali.”
Tamara & CoenInvestors“Bali Estate Group appealed to me right away: the no-nonsense mentality of Roy and Koen, no sales talk, but projects with real character. After an info evening in Delft I bought my first 2 units, with perfect financial guidance through a contact of Roy's. Now 6 units further: tidy and well organised on the construction site, and the after-sales on location is top notch.”
“After I sold my home in the Netherlands, I knew I wanted to do something with my equity. Through Danny I ended up at the Nova Ocean Resort project. I am very happy with my purchase and with the communication from the Bali Estate Group team. I look forward to the future!”
“We have been investing in real estate for several years, looking for a high return combined with a beautiful country to spend our holidays. Originally we wanted to do this in Spain, but due to licensing restrictions there we moved on to other countries. During our search we came into contact with Bali Estate Group. From day one we had pleasant and intensive contact. We had more than a thousand questions and Bali Estate Group always helped us neatly, quickly and professionally.”
“By early 2022 I was already busy putting my money to good use in real estate for a high ROI. However, this job was bigger than I thought. I came into contact with various parties, but it was all 'almost right'. Until I got in touch with Bali Estate Group at the end of 2024. The people gave me good advice and were able to fulfil all my wishes, and recommended investing in Bali with a high return. The person I am in contact with helps me with everything like a true professional investor. I am very satisfied with how everything is going and will certainly keep doing business in the future.”
“The purchase of Nova Oasis Villa in Canggu in early 2025 was initially a bit sluggish, but everything visibly improved along the way. The team is professional and skilled, and the reports are clear and complete. We have now stayed in the villa and will go again this year; it really feels like our second home.”
FAQ
Frequently asked questions
What is the difference between freehold and leasehold in Bali?
What is Hak Pakai and when is it relevant?
What is a PT PMA and when do you choose it?
How many years of leasehold am I guaranteed?
What happens if I want to sell during the leasehold term?
Knowledge base
Read more about investing in Bali
More articles from our knowledge base about investing in Bali.
What PP 28/2025 changes for foreign property owners
PP 28/2025 relaxes the rules around foreign real estate in Bali. What the law means for leasehold, Hak Pakai and your security as an investor.
Read articleStep-by-step plan: how to buy a villa in Bali
From the first conversation to the handover of keys. The complete step-by-step plan to buy a villa or apartment in Bali safely and with complete peace of mind.
Read articleHow do you maximise a real estate investment in Bali?
From location and operator to maintenance and occupancy: the factors with which you structurally maximise the return on your Bali real estate investment.
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