Hak Pakai for foreigners: how the right-to-use title works next to HGB and Hak Milik

Indonesian land rights are listed in the Basic Agrarian Law (5/1960) and detailed in PP 18/2021. Four of them come up when you buy a villa, and only one lets a foreign individual appear on the certificate.

Hak Milik (SHM) is freehold with no end date, open to Indonesian citizens only. HGB, the right to build, is held by citizens and Indonesian companies, including a PT PMA with foreign shareholders. Hak Pakai, the right to use, can be held personally by a foreigner who lives in Indonesia. Hak Sewa is a lease, a private contract rather than a registered land right.

Source: UUPA 5/1960; PP 18/2021, as summarized by Hukumonline Klinik and SmartLegal.id

You need to live in Indonesia legally. That means a KITAS of any type, including the Second Home visa, or a KITAP. A visa on arrival or a tourist visa doesn't qualify, and neither does owning a company here without a stay permit.

The property must be for living in. Current rules allow one house or one apartment per person or family, on a plot of up to 2,000 m² (≈ 21,530 sq ft). Anything larger needs separate ministerial approval (Permen ATR/BPN 18/2021).

Apartments work differently from houses. Since PP 18/2021, a foreigner can hold a strata title to an apartment unit (Hak Milik atas Satuan Rumah Susun) in a building that stands on HGB or Hak Pakai land. The unit is recorded in your name, and the Rp 2 bn floor for Bali still applies.

• A valid KITAS, Second Home visa or KITAP on the day the deed is signed
• One house or one apartment per person or family
• A plot of 2,000 m² or less
• The home is for living in, not for running as a rental business
• A price at or above the provincial floor

Ministerial Decree ATR/BPN No. 1241/SK-HK.02/IX/2022 sets a minimum price per province, so foreign demand doesn't push into the cheapest housing. Bali sits in the top band with Jakarta, Banten and the Java provinces.

In Bali a house with land must cost at least Rp 5,000,000,000. An apartment unit must cost at least Rp 2,000,000,000. Indonesian citizens living abroad who buy under the same rules face 75% of these amounts. The floors apply to the transaction price, so check the figure in the deed, not the one on the brochure.

Source: Kepmen ATR/BPN 1241/SK-HK.02/IX/2022, via Hukumonline Klinik and Detik Properti

This is where advisers most often disagree, and the answer is in the land underneath. PP 18/2021 treats Hak Pakai on state land differently from Hak Pakai granted on someone else's freehold.

State land, or land under a management right (HPL), gets the full ladder: a grant of up to 30 years, then 20 more by extension, then up to 30 by renewal. On land an Indonesian holds as Hak Milik, the grant runs up to 30 years and can only be renewed by a new deed the owner signs. There's no statutory extension in between, and the owner can say no.

You'll also see '25 years with extension' or 'up to 70 years' quoted online. Neither matches the regulation. Before you model a 50-year hold, find out which land your title sits on.

Source: PP 18/2021, as summarized by Hukumonline Klinik and SmartLegal.id

Hak Pakai suits one home for you and your family. If you want to rent the villa commercially or own more than one, the title usually goes to a company. A PT PMA holds HGB on the same 30 + 20 + 30 schedule, and because the company is a business, it can also carry the rental permits.

The company comes with its own entry ticket, set by BKPM in 2025: Rp 2.5 bn paid in, and an investment plan larger than Rp 10 bn that can't count the land or the villa. There are no published fees for converting a title for a company, so ask the notary for a written quote. Our PT PMA guide breaks down the running costs.

Girik, Letter C, petok D and similar documents are old tax and possession records, not titles. PP 18/2021 gave holders five years to register the land. That window closed on February 2, 2026, and since then these papers no longer count as proof of ownership (PP 18/2021, Article 96).

A plot without a registered certificate isn't a bargain waiting for paperwork. Its legal status is unknown, and so are the time and cost of fixing it. You can check a certificate for free in the Sentuh Tanahku app or at bhumi.atrbpn.go.id, which show the holder, area, coordinates and any encumbrance.

• Look up the certificate number before any money moves
• Match the name on the certificate to the person signing
• Confirm whether the land is state land or someone's Hak Milik: that decides 80 years or 30
• Check the price in the deed against the Rp 5 bn or Rp 2 bn floor
• For a company purchase, get a written quote for the title work

Hak Pakai is tied to residence. Indonesian rules have long required a foreigner who stops living in Indonesia, or an heir who doesn't qualify, to sell or transfer the house and the right within one year (PP 41/1996, restated in PP 103/2015). Have your notary confirm how the current regulation words it for your case.

Plan for this before you buy, not when your permit expires. If you expect to spend long stretches abroad, a leasehold or a PT PMA may hold up better. Compare the routes in our guide to buying property in Bali as a foreigner, or browse listings above the Rp 5 bn floor and the areas where they sit.

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