If you’re looking to buy or lease property in Bali, you’ve probably come across unfamiliar 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 article breaks down the key differences in simple terms—so you know exactly what you’re getting into.
1. Hak Milik – Freehold Ownership
Hak Milik is the strongest and most complete form of land ownership in Indonesia. It’s equivalent to freehold ownership in many Western countries.
Key facts:
- Only available to Indonesian citizens
- Offers full ownership with no time limit
- Can be passed on to heirs or sold
Foreigners are not allowed to directly hold Hak Milik land. Some try using nominee structures (an Indonesian citizen holds the title), but this is legally risky and not recommended.
2. Hak Pakai – Right to Use
Hak Pakai is the best legal alternative for foreigners who want to own and live in a property long-term. It grants the right to use a building or land for residential purposes.
Key facts:
- Available to foreigners (individuals or under PT PMA)
- Initially granted for 25–30 years, renewable up to 80 years
- Must be registered at the Land Office
- Typically used for private homes
To qualify, the land must already have a building and be in a zone allowing residential use.
3. Hak Sewa – Leasehold
Hak Sewa refers to leasing property from the legal owner for a fixed period. This is the most common option for foreigners buying villas or land in Bali.
Key facts:
- Fully legal for foreigners
- Usually for 25–30 years, with renewal options
- Can include rights to sublease or rent out the property
- Not registered at the Land Office (unless requested)
Hak Sewa is often used for investment properties, holiday rentals, or personal homes.
Quick Comparison
| Feature | Hak Milik (Freehold) | Hak Pakai (Right to Use) | Hak Sewa (Leasehold) |
|---|---|---|---|
| Who can use it? | Indonesian citizens only | Foreigners and locals | Foreigners and locals |
| Ownership duration | Unlimited | 25–30 years (extendable) | 25–30 years (extendable) |
| Legal protection | Strongest | Requires registration | Valid by contract |
| Can foreigners use? | ❌ | ✅ | ✅ |
| Transferable? | Yes | With approval | Yes (if allowed in contract) |
Whether you’re buying a villa to live in, building a business, or investing in Bali real estate, it’s essential to understand the type of land right you’re working with. Each structure has its pros and cons—what matters is choosing the one that matches your goals and risk tolerance.
At Mata Property Bali, we make sure our clients fully understand what they’re signing. If you need help reviewing a contract or choosing the right ownership model, we’re here to guide you every step of the way.
