Hak Pakai (right of use)

In one sentence. A state 'right of use' title that a foreigner with a residence permit can register in their own name; 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).

Term: up to 30 years, extendable by 20 and renewable for 30. Upsides: the title is in your name, easier to inherit and to mortgage than a lease. Downsides: a residence permit is required and the right must be transferred within a year if you lose it; price thresholds exclude most off-plan villas; 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; Hak Pakai is considered by KITAS holders buying above the threshold.

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

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