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Prime Bali Properties, Clearly Presented
The Baliners Property is a boutique real estate agency representing a curated selection of villas, land and developments across Bali. We focus on quality, location and long-term value, combining local expertise with trusted relationships and a discreet, highly personal approach.
- Current Listings
- 1182
- Areas Covered
- 137
- Certified
- AREBI-LSP
Frequently Asked Questions
Clear answers on owning, leasing and investing in Bali property, with the regulation behind each rule so you can check it yourself.
Not freehold. Under the Basic Agrarian Law (UUPA No. 5/1960, Art. 21) only Indonesian citizens may hold Hak Milik, the Indonesian freehold title. A foreigner can still hold or control property legally through one of these structures:
- Leasehold (Hak Sewa). You lease land or a villa from an Indonesian owner for an agreed term, usually 25 to 30 years. This is the most common route for foreign buyers in Bali.
- Hak Pakai (Right to Use). A registered title that a foreign individual may hold for one residential house, subject to a minimum price (Rp 5 billion for a house in Bali). Details below.
- HGB (Right to Build) through a PT PMA. A foreign-owned Indonesian company can hold HGB title for a genuine business, such as a villa rental or development. It is an investment structure, not a way to own a private home.
- Apartment units (strata title). A foreigner may own an apartment unit built on Hak Pakai or HGB land, with a minimum price of Rp 2 billion in Bali.
What a foreigner may never do is hold Hak Milik, directly or through someone else. Any arrangement that does so is void by law (UUPA Art. 26(2)). See the question on nominees below.
These are the four rights you will meet in Bali. Only the last three are land titles registered at the land office (BPN); a lease is a contract over someone else's title.
| Leasehold (Hak Sewa) | Freehold (Hak Milik) | Right to Build (HGB) | Right to Use (Hak Pakai) | |
|---|---|---|---|---|
| What it is | A contract to use land or a building owned by someone else, for rent paid upfront or periodically | Full, permanent ownership of the land | The right to own buildings on land, for a fixed term | The right to use land and own a house on it, for a fixed term |
| Who may hold it | Anyone, including foreigners | Indonesian citizens only | Indonesian citizens and Indonesian companies, including a PT PMA | Indonesians, Indonesian companies and foreigners |
| Term | As agreed, typically 25 to 30 years; no legal maximum | No end date | On state land: 30 years, extendable 20, renewable 30. On Hak Milik land: up to 30 years, renewable by deed | On state land: 30 years, extendable 20, renewable 30. On Hak Milik land: up to 30 years, renewable by deed |
| Registered | Notarial lease deed; not usually recorded on the land certificate | Yes, certificate SHM | Yes, certificate SHGB | Yes, certificate SHP |
| Legal basis | Civil Code Art. 1548 onwards; UUPA Art. 44–45 | UUPA Art. 20–21 | UUPA Art. 35–36; PP 18/2021 Art. 34–37 | UUPA Art. 41–42; PP 18/2021 Art. 49–52, 69–73 |
The HGB and Hak Pakai terms come from PP 18/2021 (Art. 37 and Art. 52). An extension or renewal is applied for at BPN and is granted, not automatic, so build its cost and timing into your plans.
Document eligibility by ownership type. ✓ means the document is used or the route is open, ✗ means it is not.
| Requirement | Hak Sewa | Hak Milik | Hak Guna Bangunan | Hak Pakai |
|---|---|---|---|---|
| Passport | ✓ For a foreign lessee | ✗ Foreigners cannot hold it | ✗ The company holds the title; its foreign shareholders show passports when it is set up | ✓ Required for a foreign holder |
| KTP (Indonesian ID card) | ✓ The Indonesian landowner (lessor) | ✓ Required: Indonesian citizens only | ✓ For an Indonesian individual holder | ✓ For an Indonesian holder |
| PT PMA | Optional: a company may also be the lessee | ✗ Companies cannot hold it | ✓ The usual route for foreign investors | Possible, but HGB is the usual company title |
| KITAS / KITAP | Not required by law | ✗ Not applicable | Not required to hold shares; needed by foreigners who live or work in Indonesia | The law accepts a visa, passport or stay permit (PP 18/2021, elucidation of Art. 69); many notaries and land offices ask for a KITAS or KITAP in practice |
| BPN registration (land office) | Usually not; the lease is a notarial deed checked against the owner's certificate | ✓ Certificate SHM | ✓ Certificate SHGB | ✓ Certificate SHP, created by a PPAT deed |
| Who may hold it | Foreigners and Indonesians | Indonesian citizens only | Indonesian citizens and Indonesian companies (incl. PT PMA) | Foreigners and Indonesians |
Every route also needs a tax number (NPWP) for the Indonesian parties and, for a married Indonesian seller or lessor, the spouse's written consent.
Hak Pakai is the only registered title a foreign individual can hold for a home. The rules are in PP 18/2021 (Art. 69–73) and Ministerial Regulation ATR/BPN 18/2021 (Art. 185–188):
- One home. One landed house per person or family, on a plot of up to 2,000 m². More needs the Minister's approval.
- Residential use only. It is a home, not a rental business.
- Minimum price in Bali. Rp 5 billion for a house and Rp 2 billion for an apartment unit (Decree of the Minister of ATR/BPN No. 1241/SK-HK.02/IX/2022). We found no later amendment, but confirm the current figure with the notary.
- Conversion. When a foreigner buys a Hak Milik or HGB property, the title is converted to Hak Pakai (Permen ATR/BPN 18/2021 Art. 187(3)).
- Inheritance. The home can pass to heirs; a foreign heir also needs valid immigration documents.
- Losing eligibility. If the holder no longer qualifies, the property must be transferred within one year, or the right lapses (PP 18/2021 Art. 50).
A foreigner married to an Indonesian should know that the Indonesian spouse keeps full land rights, including Hak Milik, only with a notarised prenuptial or separation-of-property agreement (PP 18/2021 Art. 70).
Indonesian law sets no maximum lease term: the Civil Code (Art. 1548) only requires a fixed period. In Bali, terms of 25 to 30 years are standard, and some leases run longer.
- Extensions are contractual. Agree the extension period, the price or the formula for it, and the deadline for exercising it in the original lease. Without that clause the owner can refuse or set any price.
- Use a notarial deed. A lease signed before a notary is the standard and the strongest evidence. Have the notary check the owner's certificate at BPN first.
- The lease survives a sale. If the owner sells the land, your lease continues (Civil Code Art. 1576), unless the lease itself says otherwise. Make sure it does not.
- Check the right to sublet and to transfer. If you may want to rent the villa out or sell the remaining term, the lease must allow it.
- Plan for the end. State what happens to buildings you add when the lease ends, and whether you have the first right to buy or renew.
Be wary of offers of 70 or 80 years in a single lease; the length alone does not make the lease safer than a well-drafted 30-year lease with a fixed-price extension.
General information based on Indonesian regulations as checked on 8 October 2026. It is not legal or tax advice. Rules and their local application change, so confirm every transaction with a licensed notary (PPAT) and an independent lawyer.
What Our Clients Say
Real experiences from buyers, sellers and investors we've worked with across Bali.
I have known The Baliners for a long time and they have been helping me find properties to invest in Bali. They have the knowledge of different areas, from well known area like Canggu, Seminyak, Ubud and Uluwatu. They have incredible local network and often given me property that are not yet publicly listed yet so i get the opportunity early. They're responsive, attentive and care finding what I need. A professional property agency you would want to work with.
Thinking of Selling?
If you are considering selling a villa, land, or commercial property in Bali, The Baliners can present it clearly to serious buyers.
