Last reviewed: August 2026  |  Written for foreigners deciding how to hold property in Indonesia.

Hak Pakai: The One Registered Title a Foreigner Can Hold

Hak Pakai, the right of use, matters for one reason. It is the only registered land title an individual foreign national can hold in their own name in Indonesia.

Freehold is closed to foreigners outright. HGB is open to Indonesian companies including a PT PMA, but not to foreign individuals. A lease is a contract, not a title. Hak Pakai is the exception, and Article 49(2) of PP 18/2021 says so directly by listing foreigners among those who may hold it.

What it actually is

Article 41(1) of the Basic Agrarian Law defines Hak Pakai as the right to use and take produce from land controlled directly by the State or owned by another person. The same article says expressly that it is not a lease agreement. It is a real right in the land, registered, with a certificate.

It can be mortgaged and it can be transferred. Both matter, because they are exactly what a nominee arrangement cannot give you.

Duration

The second row is the one that applies to most Bali villas, because most of them sit on land somebody else owns as Hak Milik. Thirty years, then a new deed. There is no automatic extension mechanism on privately owned land, which is why the renewal terms need to be documented at the outset rather than left for later.

The KITAS myth

You do not need a KITAS to hold Hak Pakai. Article 69(1) of PP 18/2021 says a foreigner may own a residence if they hold immigration documents, and the official elucidation defines that as "a visa, passport, or stay permit". It says or. Not and.

That is the legal eligibility test, and it is worth knowing because it is misstated constantly, including by people selling property.

Be realistic about the gap between statute and counter, though. Land offices apply the ministerial regulation and their own practice on top, so what a particular office will accept can be stricter than what the law requires. The point is not that a KITAS is never asked for. The point is that when someone tells you it is a legal precondition, they are wrong, and you should wonder what else you are being told that is not so.

Price thresholds and limits

Members of the Indonesian diaspora pay 75% of those figures. Beyond price, the ministerial regulation limits a foreigner to one parcel per person or family, capped at 2,000 m², in the luxury category. More than that needs ministerial permission on economic or social impact grounds.

There is no penalty for buying below the threshold. The transaction simply will not be registered, which is arguably a worse outcome, because you have paid without acquiring anything recordable.

How it ends

Article 61 of PP 18/2021 lists the ways Hak Pakai is extinguished. One limb deserves attention: the right lapses if the holder ceases to qualify as a subject of the right.

For a foreigner, that means immigration status. If you lose the qualifying status, the right can lapse. This is the structural weakness of Hak Pakai as a long-term hold, and it is rarely explained by people selling it.

Separately, Article 35 of PP 18/2021 gives a holder who ceases to qualify one year to release or transfer the right before it lapses by operation of law.

Inheritance

Hak Pakai is inheritable under Article 69(2) and (3). The catch is that the foreign heir must also hold immigration documents. A foreign heir with no connection to Indonesia may find themselves holding something they cannot keep, and back on the one-year clock.

Married to an Indonesian citizen

This catches more people than any other provision. Article 70(2) of PP 18/2021: land held by an Indonesian married to a foreigner is not treated as joint marital property only if there is a notarial separation-of-property deed.

Without one, the foreign spouse's interest contaminates the title, and the freehold rules bite: a foreigner cannot hold Hak Milik, so the one-year divestment clock under Article 21(3) of the Agrarian Law starts running.

The deed can be made before or during the marriage. Marriages entered into without one, where the Indonesian spouse later inherits or buys freehold, are a recurring and entirely avoidable problem.

Hak Pakai compared with the alternatives

There is no universally right answer. Hak Pakai gives you a registered, mortgageable title in your own name and ties it to your immigration status. Leasehold has no term ceiling and no status dependency but gives you no certificate. A company gives you the longest secure term and the heaviest administration, and since May 2026 64 business classifications are closed to foreign companies in Bali, including owned and leased real estate.

What Hak Pakai is not

It is not a workaround for the freehold rule, and it is not a nominee structure with better paperwork. Article 26(2) of the Agrarian Law voids any transaction intended to transfer freehold to a foreigner directly or indirectly, the land falls to the State, and payments already received cannot be reclaimed. Hak Pakai is a legitimate, separate right, which is precisely why it works.

Our page on leasehold versus freehold sets out the case law on nominee arrangements in detail.

Common questions

Can a foreigner hold Hak Pakai in their own name?

Yes. Article 49(2) of PP 18/2021 lists foreign nationals among those who may hold Hak Pakai. It is the only registered land title an individual foreigner can hold directly in Indonesia.

Do I need a KITAS for Hak Pakai?

Not as a matter of law. Article 69(1) requires immigration documents, and the official elucidation defines these as a visa, passport, or stay permit. Land office practice is often stricter than the statutory test, so check locally.

How long does Hak Pakai last?

Thirty years plus a twenty-year extension plus a thirty-year renewal on state or HPL land. Over privately owned freehold the maximum is thirty years, renewable by a fresh PPAT deed, with no automatic extension.

Can Hak Pakai be inherited?

Yes, under Article 69(2) and (3), but the foreign heir must also hold immigration documents. An heir who does not qualify has one year under Article 35 to transfer or release the right.

What is the minimum price for a foreigner to buy in Bali?

Rp 5 billion for a landed house and Rp 2 billion for a strata unit, with the Indonesian diaspora paying 75% of those. Buying below the threshold carries no penalty but the transaction will not be registered.

My spouse is Indonesian. Can we hold freehold?

Only with a notarial separation-of-property deed. Article 70(2) provides that land held by an Indonesian married to a foreigner is excluded from joint marital property only where such a deed exists. Without one, the foreign spouse's interest contaminates the title and the one-year divestment rule applies.

Getting this decided properly

Which structure suits you depends on how long you need the property, whether you have or want Indonesian immigration status, whether you intend to let it, and whether you are married to an Indonesian citizen. Those are answerable questions once someone looks at the actual certificate and your actual circumstances.

We act for foreign buyers in Bali on title checks, Hak Pakai applications and lease drafting. If you have been offered something and want to know whether it stands up, send us the documents.

General information on Indonesian law as at August 2026, not legal advice. Land regulation has changed repeatedly since 2021 and some procedures remain unsettled. Take advice on your own transaction before committing funds.

Sources

• UU No. 5/1960 (Basic Agrarian Law): Articles 21, 26(2), 41
• PP No. 18/2021: Articles 35, 49, 51, 52, 55, 60, 61, 69, 70, 71, 72
• Permen ATR/BPN No. 18/2021: Article 186
• Kepmen ATR/BPN No. 1241/SK-HK.02/IX/2022 on minimum purchase prices