Hak Pakai (right of use) , Bali villa glossary

In one sentence. A state 'right of use' title that a foreigner with a residence permit can register in their own name. It is rare in practice because of price thresholds and status requirements.

Hak Pakai is a state-granted right to use land. Unlike a leasehold it is not a contract with a private owner but a title registered at BPN in the holder's name. A foreigner can obtain Hak Pakai over a house or plot if they reside legally in Indonesia (KITAS/KITAP) and the property clears the provincial minimum price (PP 18/2021 and ATR/BPN ministerial rules).

The term is up to 30 years, extendable by 20 and renewable for 30. The upside is that the title is in your name and is easier to inherit and to mortgage than a lease. The downsides are that a residence permit is required, the right must be transferred within a year if you lose it, price thresholds exclude most off-plan villas, and notaries and sellers handle it far less often than leasehold.

Practical takeaway. For an investor who does not live in Bali, leasehold is the baseline, and Hak Pakai is considered by KITAS holders buying above the threshold.

Where the term comes up

Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.

Hak Pakai (right of use)

Read more in the blog

Where the term comes up

Related terms

We'll match a villa to your brief