Hak Sewa vs Hak Milik for Foreigners in Bali
Understanding Indonesian land-title structures is the first thing any foreign buyer should do before looking at property.
Made Suastika, S.H., M.Kn.
Legal & Notary Lead
Many foreign buyers attracted to Bali don't realise that Hak Milik (freehold) is legally closed to foreigners. The 1960 Basic Agrarian Law strictly limits freehold ownership to Indonesian citizens. For foreigners, there are three main legal structures: Hak Sewa (a 25–30 year long-term lease, contractually extendable), Hak Pakai (a use-right that can be held directly by a foreigner with a KITAS/KITAP residency permit), or Hak Guna Bangunan via a PT PMA (foreign-investment company). Each structure has different tax, duration, and exit implications. Hak Sewa is the most common because it is flexible, while PT PMA is suited to buyers building a short-term rental business. A discussion with a notary (PPAT) before signing a letter of intent is mandatory.
