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Bali · Invest · Property rights

Leasehold vs Freehold in Indonesia

The two legal ways to hold property in Bali as a foreigner. Real differences, taxation and why the choice shapes your entire operation.

Draft · work in progress

Placeholder content — Final version will be co-signed with Indonesian legal counsel.

Hak Milik · Full freehold

Strongest regime. Indonesian citizens only.

Hak Sewa · Leasehold

Long-term lease. The primary tool for foreign investors.

Hak Pakai · Use right

For residents with valid visa.

PT PMA · Corporate route

Indonesian company with foreign capital. Closer to freehold operationally, but it’s a real company with full compliance.

Frequently asked questions

Can a foreigner own freehold (hak milik)? +
No. Hak milik is reserved for Indonesian citizens. Foreigners operate via leasehold or through a PT PMA.
What happens when the leasehold ends? +
Whatever the contract says. The usual route is renewal with predefined terms. Without that clause, the property reverts to the landowner.

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