Leasehold vs Freehold in Bali: what a foreigner can hold in 2026

Short answer: a foreigner will not get true freehold land ownership on Bali — it is explicitly barred by law. But several legal structures are available. Here is what you can use and how they differ. The foundation is Indonesia's Basic Agrarian Law (UUPA, Law No. 5 of 1960), which defines all land rights. Hak Milik — freehold, full ownership. Indonesian citizens only. A foreigner cannot hold Hak Milik (UUPA Art. 21). If such land passes to a foreigner by inheritance or marriage, they must transfer it within one year or it reverts to the State (Art. 21(3)). Hak Pakai — Right to Use. A legal title a resident foreigner (with KITAS/KITAP or a qualifying visa) can hold in their own name. Under Government Regulation PP No. 18 of 2021, terms on state land are: up to 30 years + a 20-year extension + a 30-year renewal — up to 80 years in total. Over private (Hak Milik) land: up to 30 years, renewable by deed. A good fit for a home you live in. Hak Sewa — lease (leasehold). The most common structure foreigners use: a contractual long-term lease (UUPA Art. 44–45). It is not a registered land title but a contract — the term and extension are set by agreement, not by statute. On the Bali market it is usually 25–30 years, often with a pre-agreed extension. The lessee's main protection is a well-drafted notarial deed (akta sewa) with clear extension and inheritance terms. Hak Guna Bangunan (HGB) — Right to Build. Terms under PP 18/2021: 30 + 20 + 30, up to 80 years. A foreign individual cannot hold HGB directly — it is available to Indonesian citizens and Indonesian legal entities. PT PMA — a foreign-owned company. It is an Indonesian legal entity, so it can hold HGB and Hak Pakai (but not Hak Milik). This is the standard route when the property is a business (e.g. a rental villa): the rights are longer, transferable, and can be used commercially. Nominee arrangements — holding Hak Milik in an Indonesian's name "for you" — do not work. Under UUPA Art. 26(2) such a deal is void (batal demi hukum) and the land goes to the State. Indonesian courts do not enforce these agreements: you risk losing both your money and the property. In 2026 Bali is discussing tougher penalties for nominee schemes — all the more reason to avoid them. What to choose: — living there yourself with residency — Hak Pakai; — buying for a fixed term without a company — Hak Sewa (leasehold) with a strong contract; — building a rental business needing length and transferability — a PT PMA with HGB or Hak Pakai; — "freehold in your own name" or a nominee — no, not for a foreigner. Important: exact terms, extensions and taxes depend on the land type and district. Before any deal, verify the certificate (Hak Milik / HGB / Hak Pakai), the zoning and the contract text with an independent PPAT notary — not with the seller. Sources: — UUPA, Law No. 5/1960 (English translation): https://www.flevin.com/id/lgso/translations/Laws/Law%20No.%205%20of%201960%20on%20Basic%20Agrarian%20Principles%20(ETLJ).doc — PP No. 18/2021, official text: https://peraturan.go.id/files/pp18-2021bt.pdf — PP No. 18/2021, regulation record (JDIH BPK): https://peraturan.bpk.go.id/Home/Details/161848/pp-no-18-tahun-2021