All Bali property guides — by Balibound Realty, a boutique real estate agency in Bali (sales and 30-day-plus rentals).
By Balibound Realty · Updated 2026-07-18
Short answer: freehold (Hak Milik) in Bali is reserved for Indonesian citizens, so as a foreigner your practical choice is between a leasehold, a Hak Pakai title, or holding through a PT PMA company. "Leasehold vs freehold" is really a question about how long you hold the property and in whose name. This guide explains the difference in plain terms and what each means for your money and your resale.
This is full, indefinite ownership of the land, and under Indonesian law it is only available to Indonesian citizens. A foreigner cannot hold Hak Milik directly, and cannot legally hold it through a local nominee either. If someone offers you "freehold" as a foreigner, that is a red flag, not a bargain.
You hold the right to use the property for a fixed term, typically 25 to 30 years, usually with an option to extend. It is the most common route for foreign buyers because it is straightforward and quicker to complete. The key thing to understand is that the clock runs: each year the remaining term shortens, and that affects resale value down the line. A fresh 30-year lease and one with 12 years left are very different assets, so the remaining term matters as much as the price. And because a lease is only as strong as its deed, make sure it spells out the extension option at a pre-agreed price and what happens to the buildings at the end of the term. Those two clauses are where poorly drafted leases go wrong.
Available to foreigners with the right residency, Hak Pakai can run up to 80 years in total across its initial period and renewals. It sits in your own name, and for an individual it is the closest thing to freehold you can legally hold. Many long-term residents prefer it for exactly that reason.
If you buy through a foreign-owned company (PT PMA), the company can hold land it acquires under Hak Guna Bangunan, the Right to Build, for up to 80 years across the initial grant, extension and renewal. This is the usual structure for an investment property or a rental business, and it keeps the asset inside a company you control. Note the "land it acquires" part: HGB granted over land a private owner keeps title to runs on shorter terms, so have a notaris confirm which case yours is before anyone quotes you 80 years.
None of these is "worse" than the others. They are different tools for different plans. The mistake is choosing on price alone without matching the structure to how long you actually intend to hold.
Whichever route you take, the binding legal work, the title check, the permit check, and the contract, should be done by a licensed notaris. We help you understand your options and pick the right fit, then bring in the notaris for the legal certainty. We would rather you buy the right way than the fast way.
Thinking about a specific property? Send it over and we will tell you which structure it sits under and what that means for you.
No. Freehold (Hak Milik) is reserved for Indonesian citizens. Foreigners hold property through leasehold, Hak Pakai, or a PT PMA company.
For a foreigner it is not really a choice, since freehold is not available to you. The real decision is between leasehold, Hak Pakai, and a company structure, based on how long you plan to hold.
The remaining term shortens each year, which affects resale. That is why the years left on a lease matter as much as the asking price. It is manageable when you factor it in from the start.
Hak Pakai and HGB (through a company) can reach up to 80 years in total, longer than a typical leasehold.
No. It is illegal, unenforceable, and since 2026 expressly prohibited under Bali's provincial regulation with criminal sanctions. It puts the whole asset at risk. Use a proper legal structure.
Read this guide on our site: https://baliboundrealty.com/guides/leasehold-vs-freehold-in-bali
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