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.

Waarom Bali Estate Group

Vier redenen waarom investeerders voor ons kiezen

Leasehold tot 80 jaar

Wij bedongen verlengingsopties tot 80 jaar, waar de marktstandaard 30 jaar is. Op het moment van schrijven uniek in de markt.

Ontwikkelaar en verkoper in een

Geen tussenpartijen. Wij selecteren zelf de locatie, regelen de juridische structuur en contracteren de operator.

MĀUA by Swiss-Belhotel

Internationale hoteloperator met decennia ervaring, op ons vlaggenschip Nova Ocean Resort. Hogere bezetting, lagere rendementsvariantie.

Transparante kwartaalrapportage

Elk kwartaal inzicht in omzet, bezetting en netto rendement. Verifieerbare cijfers in plaats van loze beloftes.

Bekend van

Ervaringen

Wat onze investeerders zeggen

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“We zijn al enkele jaren bezig om te investeren in vastgoed, waarbij we zochten naar een hoog rendement in combinatie met een mooi land om vakantie te vieren. Oorsprokelijk wilde we dit in Spanje gaan doen, maar door licentie beperkingen daar zijn we uitgeweken naar andere landen. Tijdens de zoektocht zijn wij in aanraking gekomen met Bali Estate Group. Vanaf dag 1 hadden wij fijn en intensief contact. We hadden meer dan duizend vragen en Bali Estate Group heeft altijd netjes, snel en professioneel geholpen.”

JJohn

FAQ

Frequently asked questions

What is the difference between freehold and leasehold in Bali?

Freehold (Hak Milik) is full land ownership, reserved exclusively for Indonesian citizens. Foreigners work with leasehold (Hak Sewa), a lease right for an agreed term. The market standard is 25 to 30 years; for our projects we have negotiated terms of up to 80 years.

What is Hak Pakai and when is it relevant?

Hak Pakai is a registered right of use for residential purposes, up to a maximum of 80 years. It requires a valid Indonesian residence permit and a minimum value. Especially relevant for investors who also want to spend longer periods in Bali.

What is a PT PMA and when do you choose it?

A PT PMA is a foreign investment company under Indonesian law that can hold real estate under HGB ownership for commercial purposes. It requires a minimum investment of around IDR 10 billion and annual reporting. Suitable from two or more projects onwards, or for commercial real estate.

How many years of leasehold am I guaranteed?

For our projects we have negotiated extension options of up to 80 years, where the market standard in Bali is typically 30 years. We explain the exact term and extension structure in writing for each project.

What happens if I want to sell during the leasehold term?

Leasehold contracts are usually transferable to a new leaseholder, possibly with the approval of the landowner. For our projects we actively support the resale, because a healthy secondary market is important for long-term value.

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