Leasehold

In one sentence. A long-term land lease with the right to build, rent out and assign — the only format in which a foreigner personally holds a villa in Bali.

Leasehold (Indonesian: Hak Sewa, the right of lease) is a long-term lease of a plot from an Indonesian owner. The lessee may build a villa, live in it, rent it out and assign the lease to a third party. Freehold land title (Hak Milik) is closed to foreigners by Article 21 of the Basic Agrarian Law (UUPA 5/1960), so leasehold is the baseline legal format for an individual.

The Bali market usually sells 25–30 years plus a vague "right to extend". Notaries rarely register a single lease beyond ~30 years, hence the ceiling. In the projects DOMA represents the term is built in steps — 29 + 10 + 30 = 69 years — with the price of each extension written into the contract up front.

What to check in a lease:

the land certificate (SHM) and the owner verified at BPN — a lease is worth nothing without the lessor's title;
term, mechanism and price of extension — a formula or fixed uplift, not "by agreement";
the right to sublet and assign without the owner's separate consent each time;
spousal consent of the owner and an heirs clause;
notarial form: legalisasi or akta notaris, not a private signature.

FAQ

Is leasehold ownership?

No. It is a right of lease for the term fixed in the contract. Within that term you act as the owner: live, rent, sell (assign) and pass it on to heirs if the clause is in the deed.

What if the landowner sells the land?

A sale does not end the lease (Art. 1576 of the Civil Code): the new owner is bound by your contract — provided the lease is notarised and its date is enforceable against third parties.

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

Read more in the blog

Related terms

FAQ

We'll match a villa to your brief