Ownership & law
Leasehold
Leasehold (лизхолд) · Hak Sewa
Leasehold (Indonesian Hak Sewa, the right of lease) is a long-term lease of a plot from an Indonesian owner. The lessee may build a villa, live in it, rent it out and assign the lease to a third party. Freehold land title (Hak Milik) is closed to foreigners by Article 21 of the Basic Agrarian Law (UUPA 5/1960), so leasehold is the baseline legal format for an individual.
The Bali market usually sells 25–30 years plus a vague "right to extend". Notaries rarely register a single lease beyond ~30 years, hence the ceiling. In the projects DOMA runs the term is built in steps (29+10+30 = 69 years), with the price of each extension written into the contract up front.
What to check in a lease:
- the land certificate (SHM) and the owner verified at BPN, since a lease is worth nothing without the lessor's title,
- term, mechanism and price of extension, set as a formula or fixed uplift, not "by agreement",
- the right to sublet and assign without the owner's separate consent each time
- spousal consent of the owner and an heirs clause
- notarial form, meaning legalisasi or akta notaris, not a private signature.
Read more in the blog
Related terms
FAQ
Is leasehold ownership?
No. It is a right of lease for the term fixed in the contract. Within that term you act as the owner. You live there, rent it out, sell (assign) it and pass it on to heirs if the clause is in the deed.
What if the landowner sells the land?
A sale does not end the lease (Art. 1576 of the Civil Code). The new owner is bound by your contract, provided the lease is notarised and its date is enforceable against third parties.
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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