Land Ownership in Bali Explained: Hak Milik, Hak Pakai, and Hak Sewa
If you’re looking to buy or lease property in Bali, you’ve probably come across terms like Hak Milik, Hak Pakai, and Hak Sewa. These are legal categories of land rights in Indonesia, and understanding them is essential before signing any agreement.
This guide breaks down the differences in simple terms so you know exactly what each one means and which option fits your situation.
1. Hak Milik – Freehold Ownership
Hak Milik is the strongest and most complete form of land ownership in Indonesia, similar to freehold ownership in Western countries.
Key facts:
- Available only to Indonesian citizens
- Offers full ownership with no time limit
- Can be sold, transferred, or inherited freely
Foreigners cannot hold Hak Milik land directly. Some try to bypass this restriction through nominee arrangements — using an Indonesian citizen to hold the title — but this is legally risky and not recognized by Indonesian law.
2. Hak Pakai – Right to Use
Hak Pakai is the most secure legal option for foreigners who want to live or invest long-term in Indonesia. It grants the right to use land or property for residential purposes, without owning the land itself.
Key facts:
- Available to foreign individuals and foreign-owned companies (PT PMA)
- Initially valid for 25–30 years, renewable up to 80 years
- Must be registered at the Land Office (BPN)
- Typically used for residential homes or villas
To qualify, the land must already have a building and be located in a zone that permits residential or tourism use. Hak Pakai ownership provides solid legal standing and is suitable for long-term living.
3. Hak Sewa – Leasehold
Hak Sewa means leasing property from a legal owner for a fixed period. It’s the most common structure used by foreigners buying villas or land in Bali.
Key facts:
- Fully legal for foreigners
- Typically 25–30 years, often with renewal options
- Can include rights to sublease or rent out
- Based on a notarized contract (registration optional)
Leasehold ownership offers flexibility and affordability, making it ideal for investors seeking income from rentals or buyers who want to enjoy Bali living without a company setup. Make sure to secure a long term leasehold agreement.
What happen at the end of the leasehold agreement?
Quick Comparison
| Feature | Hak Milik (Freehold) | Hak Pakai (Right to Use) | Hak Sewa (Leasehold) |
|---|---|---|---|
| Who can own/use it | Indonesian citizens only | Foreigners & locals | Foreigners & locals |
| Duration | Unlimited | 25–30 years (extendable to 80) | 25–30 years (extendable) |
| Legal strength | Strongest ownership | Requires registration | Valid by contract |
| Can foreigners use it? | ❌ No | ✅ Yes | ✅ Yes |
| Transferable | Yes | With approval | Yes, if allowed in contract |
Choosing the Right Option
Each structure has its pros and cons.
- Hak Milik gives full ownership but is limited to Indonesians.
- Hak Pakai offers long-term security for foreigners who qualify.
- Hak Sewa provides simplicity and flexibility for short- or mid-term investments.
Understanding these differences helps you choose the best option for your goals — whether you’re buying a villa to live in, leasing for rental income, or planning a larger development.
At Mata Property Bali, we ensure every client understands the legal framework behind their investment. If you need help reviewing a contract or choosing the safest ownership model for your situation, our team is here to guide you from start to finish.
Contact us today and start browsing among our hundreds of high end properties for sale around Bali and Indonesia!
