Ownership & law
HGB (Hak Guna Bangunan, right to build)
HGB (Hak Guna Bangunan, право застройки) · Hak Guna Bangunan
HGB is the right to construct and own a building on land that belongs to the state or a private owner. It is registered to a legal entity, including a foreign-owned PT PMA. Term: up to 30 years, extendable by 20, renewable for 30.
"PT PMA + HGB" was, until 2026, the second most common ownership route after leasehold: the company holds the title, the foreigner owns the company. Since May 2026 Bali has stopped registering new PT PMAs under 18 KBLI codes, including real estate 68111, so the route is hard to open for new buyers, while existing companies operate under closer scrutiny.
Running cost: annual reporting, bookkeeping, corporate taxes, PMA investment requirements (from IDR 10 billion declared). For a single villa this is usually costlier and heavier than a lease; for a multi-villa portfolio it is a calculation to run with a lawyer.
Read more in the blog
- PMA or leasehold: choosing the ownership structure
- Bali Closes PT PMA Registration: 18 KBLI Codes, Including Real Estate 68111
Related terms
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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