Lease extension

In one sentence. The clause that gives the lessee the next lease term; it protects you only if it fixes the owner's obligation, the timing and the price (or formula) — not 'by mutual agreement'.

The key question in any 25–30-year deal: what happens after. Most contracts on the market say "extension by mutual agreement" — Bali lawyers call that zero protection: a right exists, the owner's obligation and the price do not.

The working structure is steps written into the contract from day one. In the projects DOMA represents: 29 base years + 10 years on a fixed scale (initial price +10% if extended in 2027–2029, +20% in 2030–2032, +30% in 2033–2035) + 30 years under the KF formula, where the owner is obliged to extend and the price comes from the formula, not negotiation. Horizon: 69 years.

What to check: the owner's obligation ("shall", not "may"); the notice period (90 days in DOMA contracts); heirs and future land buyers being bound; notarial form and escrowed documents so the clause survives a change of owner.

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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