Ownership & law
HGB (Hak Guna Bangunan, right to build)
HGB (Hak Guna Bangunan, право застройки) · Hak Guna Bangunan
HGB is the right to construct and own a building on land that belongs to the state or a private owner. It is registered to a legal entity, including a foreign-owned PT PMA. The term is up to 30 years, extendable by 20 and renewable for 30.
"PT PMA + HGB" was, until 2026, the second most common ownership route after leasehold, with the company holding the title and the foreigner owning the company. Since May 2026 Bali has stopped registering new PT PMAs under 18 KBLI codes, including real estate 68111, so the route is hard to open for new buyers, while existing companies operate under closer scrutiny.
Running costs include annual reporting, bookkeeping, corporate taxes and PMA investment requirements (from IDR 10 billion declared). For a single villa this is usually costlier and heavier than a lease, while for a multi-villa portfolio it is a calculation to run with a lawyer.
Read more in the blog
- PMA or leasehold, choosing the ownership structure
- Bali Closes PT PMA Registration for 18 KBLI Codes, Including Real Estate 68111
Related terms
Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.
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