In 2025, Indonesian regulations around foreign real estate were relaxed further with PP 28/2025. For you as an international investor, that is good news: the trend is that Indonesia actively wants to attract foreign investment. In this article we explain what is changing and what it means concretely for your position.
What is PP 28/2025
PP 28/2025 is an Indonesian implementing regulation that modernises the frameworks around ownership and usage rights for foreigners. The regulation builds on the stable line set since 2020 and makes a number of structures more accessible and predictable.
The most important point: no legal cap on leasehold anymore
The most relevant change for the average investor concerns leasehold (Hak Sewa). Where a market standard of 25 to 30 years was often assumed before, the new regulation sets no legal maximum on the term. The duration is now mainly a matter of what the parties agree contractually.
That is exactly where we make the difference. For our projects we have negotiated extension options of up to 80 years of leasehold, which at the time of writing is unique in the market. For you this means a much longer return horizon and a stronger position in the event of a future resale to a second leaseholder.
What it means for Hak Pakai
For Hak Pakai (Right to Use) the framework also remains attractive: a usage right for residential purposes with a term that can run up to 80 years, provided you hold a valid Indonesian residence permit. For investors who do want to stay in Bali for longer periods, this is a serious option.
How we guide you through this
Regulations read as complicated quickly, but in practice they are manageable with the right guidance. We follow legislative changes actively, work exclusively with established notaries and verified ownership titles, and explain the exact structure per project in writing before you commit. That way you know precisely where you stand.
