Leasehold vs Freehold in Bali: What’s the Difference & What Should You Choose?
Thinking about buying property in Bali but unsure what leasehold or freehold really means? You’re not alone. Foreign investors often face confusion when exploring ownership structures in Indonesia. This guide will break down the legal differences, help you understand what’s possible for non-Indonesians, and clarify which option best suits your goals.
Understanding land ownership structures in Bali is key — especially for foreigners. Indonesian law restricts direct land ownership to citizens, and that has created unique pathways for foreign investors. As Bali continues to attract global attention for lifestyle and investment, knowing the difference between Hak Milik, Hak Sewa, and HGB is essential.
What Is Freehold (Hak Milik)?
Hak Milik is the strongest land title in Indonesia — offering full ownership rights with no expiration. It allows the owner to sell, transfer, or inherit the land.
So How Can Foreigners Own Land in Bali?
Foreigners have two main legal options:
Let’s look at each in detail.
1. Leasehold (Hak Sewa) – A Safe, Flexible Option
Leasehold means leasing land for a set period (usually 25–30 years) with extension rights. You can build, renovate, and rent out the property legally.
Why leasehold is popular:
When structured properly with due diligence, leasehold is a solid investment for private villas or rental properties.
2. PT PMA Ownership – “Freehold” for Foreigners
A PT PMA is a foreign-owned company registered in Indonesia. While it cannot hold Hak Milik, it can hold land under Hak Guna Bangunan (HGB) — the Right to Build, valid for up to 80 years (initial 30 years + extensions).
How it works:
This setup is best for:
Key Reality: You Can’t Choose the Title Freely
Landowners decide what title is available — not the buyer.
In many regions of Bali, land is sacred and inherited — meaning it’s rarely sold as freehold. Leasehold is often the only viable option.
At New Life Bali, we guide you based on what the market offers — not just what you wish for.
Choosing the right ownership structure depends on your goals — short-term rental income, long-term business investment, or personal use.
📩 Book a free consultation with New Life Bali — we’ll walk you through the legal steps, title options, and market availability.
Contact us here or email contact@newlifebali.com
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Land Lease in Indonesia
Land Lease is the most popular way for foreigners to own land in Indonesia.
