Bali Villa Sale Guide

Hak Sewa / Leasehold

Foreigner Friendly

Leasehold ownership title which grants the right to occupy someone else's property (land or villa) for a fixed duration. Foreigners can legally own a property with this title for up to 30 years and may extend for 20 more years, but in practice it is the agreement between the buyer and the seller that determines the lease duration.

Hak Milik / Freehold

Indonesian Only

Freehold ownership title which grants permanent ownership of a property. Hak Milik is registered in the Land Office under the owner's name, with every ownership transfer and title conversion recorded in the certificate itself as well as the Land Office. Only Indonesian citizens are allowed to hold this title.

Hak Pakai

Limited Use

Similar to Hak Sewa, but involves the conversion of the Hak Milik into Hak Pakai in the Land Office which will cost more time and money. Hak Pakai is less used than Hak Sewa due to other factors including Hak Pakai properties may only be used for private residence.

Hak Guna Bangunan

Corporate

Title reserved for commercial purposes, converted from Hak Milik, and the ownership is transferred to either an Indonesian-owned or foreign-owned company (PT, PMA). Using this title is the most secure approach to owning a property for foreigners and grants the ability to acquire freehold properties. An HGB is valid for up to 70 years, and comprises 30 years of initial validity + 20 years of extension + 20 years of renewal.