Hak Pakai in Bali: How a Foreigner Can Own a House Legally

How Hak Pakai in Bali lets a foreigner own a house: who qualifies, the IDR 5 billion minimum, terms and renewal, buying steps, costs, heirs and resale.

Hak Pakai (right of use) is the registered land title that lets a foreigner own a house in Bali in their own name. With an immigration document, you can hold it for one home on up to 2,000 m², priced at IDR 5 billion or more, for up to 30 years at first. Here is how Hak Pakai in Bali works as of October 2026, from buying to renewal, inheritance and resale.

What is Hak Pakai in Bali?

Hak Pakai is the right to use a plot of land, and own the house on it, for a fixed term, registered at the land office. The Basic Agrarian Law (UUPA, Law 5/1960) allows it for foreigners domiciled in Indonesia (art. 42). The details are in Government Regulation (PP) 18/2021, in force since February 2021, and the land ministry’s Permen ATR/BPN 18/2021 (arts. 185–188); minimum prices are in a ministerial decision, Kepmen ATR/BPN 1241/2022.

Unlike Hak Milik (freehold), which only Indonesians can hold (UUPA art. 21), Hak Pakai has an end date and conditions. Unlike a lease, which is a contract with the owner, it exists once registered (PP 18/2021 art. 54), can carry a registered mortgage and triggers BPHTB, the acquisition tax. Our guide to buying property in Bali as a foreigner compares all the routes.

Who can hold Hak Pakai?

Hak Pakai for foreigners requires a valid immigration document (PP 18/2021 art. 69; Permen art. 185). The PP’s official explanation defines it as a visa, passport or stay permit, and so does the ministry’s document list for changing a title into a foreigner’s Hak Pakai (Permen art. 159).

So the rules themselves do not require a KITAS or KITAP (stay permit), but PPATs (land deed officials) and land offices may still ask for one, and for a tax number (NPWP). Check early with your PPAT.

Can a foreigner own a house in Bali with Hak Pakai?

Yes: one landed house, as your home, priced at IDR 5 billion or more. The limits (Permen ATR/BPN 18/2021 arts. 186–187; PP 18/2021 art. 72):

• One plot per person or family, of at most 2,000 m², unless the minister allows more for a positive economic and social impact.
• A “luxury house” as defined in other rules; your PPAT can confirm a house qualifies.
• For living in, not for business.
• At least IDR 5 billion in Bali for a new or existing house (Kepmen 1241/2022, in force as of October 2026).

An apartment is held as a strata title (Hak Milik atas Satuan Rumah Susun), not as Hak Pakai (PP 18/2021 arts. 67 and 71; Permen art. 188). In Bali it must cost at least IDR 2 billion (Kepmen 1241/2022).

Two ways to buy a house on Hak Milik land

On Hak Milik land the rules offer two ways to give you Hak Pakai. Ask your PPAT at the start which one the deal uses.

The owner grants you Hak Pakai over their Hak Milik

The Indonesian owner keeps the Hak Milik and grants you Hak Pakai over it by a PPAT deed (PP 18/2021 art. 53(3)). The grant must be registered; from then on your right exists and binds third parties, not only the owner (art. 54). It runs for up to 30 years and is renewed only by a new deed with the owner (arts. 52(3), 55(3)). When it ends, the land returns to the owner (art. 62(4)).

The title is changed into Hak Pakai in your name

When a foreigner buys the house together with its Hak Milik or HGB (right to build) land, the title is changed into Hak Pakai (Permen art. 187(3)), so the seller’s Hak Milik or HGB ends for good. The application includes your identity and immigration documents, the certificate, the deed of transfer (or other proof of acquisition) and, if the land is mortgaged, the lender’s consent (art. 159). The land office registers Hak Pakai on the former Hak Milik or HGB land for up to 30 years at first, records it on the certificate and can process the transfer at the same time (art. 161).

How long does Hak Pakai last?

No extension is automatic. The term depends on the land underneath:

• State land, or land under a management right (HPL): up to 30 years, plus up to 20 by extension and up to 30 by renewal if you still qualify (PP 18/2021 art. 52(1)). Apply for the extension before expiry and for a renewal within two years after it ends (art. 56). At the end the land reverts to State or HPL land; the minister may give the former holder priority (art. 52(4)–(5)).
• Over someone’s Hak Milik: up to 30 years, renewable only by a new deed agreed with the owner (arts. 52(3), 55(3)).
• After a change of title: up to 30 years at first (Permen art. 161). Ask your PPAT which extension and renewal rules follow.

What to negotiate over Hak Milik

If the owner or their heirs will not sign a new deed when the term is over, your right ends. Settle these points in the grant deed:

• Renewal: the length, price or formula, notice deadline and the owner’s promise to sign, ideally binding heirs and future buyers (ask your PPAT how far that can be secured).
• The house: what happens to it if there is no renewal.
• Selling on: a fixed-term Hak Pakai can be transferred (art. 60), but check whether the deed requires the owner’s consent.
• Obligations: breaching the grant agreement is a ground for cancelling the right (art. 61).

How to buy a house with Hak Pakai, step by step

1. Check that you qualify: an immigration document, at least IDR 5 billion, and no other Hak Pakai house for you or your family.
2. See the certificate early: the plot size, and whether the land is Hak Milik, HGB or already Hak Pakai. Start with our villas for sale.
3. Agree the route with your PPAT: a grant over the owner’s Hak Milik, or a change of title.
4. Due diligence: your PPAT checks the certificate at the land office (official fee IDR 50,000), the owner’s identity and who else must sign (a spouse or co-heirs); also check zoning, permits and the land tax bill (see our due diligence guide).
5. Binding agreement (PPJB): for a sale, BPHTB is legally due on signing; ask how your regency applies this.
6. Taxes and payment: pay by traceable bank transfer. The land office needs proof of the seller’s tax to process a transfer, and in practice PPATs ask for both parties’ taxes before the deed.
7. The deed: your PPAT prepares either a deed granting Hak Pakai over the owner’s Hak Milik or, for a change of title, the transfer deed.
8. Registration: your Hak Pakai exists only once the land office registers it.

We review the certificate and permits with the owner before a listing goes online and work with independent PPATs, but only a PPAT can run the official check at the land office, so have yours do it before you pay. Ask for a realistic schedule; timing depends on the land office.

What does buying with Hak Pakai cost?

As of October 2026:

Each regency sets its BPHTB rate up to the 5% maximum. Confirm it with your PPAT, together with how the owner’s side of a grant over Hak Milik is taxed and the land office fees for a grant or change of title. New villas from VAT-registered developers also carry VAT. Details: our guide to Bali property taxes and buying costs.

Inheritance, leaving Indonesia and selling later

Inheritance

Hak Pakai can be inherited, but a foreign heir needs an immigration document too (PP 18/2021 art. 69); an Indonesian heir can hold it anyway. An heir who does not qualify generally has one year to transfer it to someone who does, or it ends by law (art. 50). Plan for this with a notary before you buy.

Leaving Indonesia or losing your stay permit

The rules on foreigners’ homes (PP 18/2021 arts. 69–73, Permen arts. 185–188) contain no special rule for owners who leave. Under the general rule, if you no longer meet the conditions, for example without a valid immigration document, you generally have one year to sell or transfer, or the right ends by law (PP 18/2021 art. 50). Ask a PPAT before you move away.

Selling later

You can sell to a qualifying foreigner, an Indonesian citizen or an Indonesian company (UUPA art. 42), and you pay the 2.5% seller’s tax. A foreign buyer must meet the same rules, including the minimum price (Permen art. 187(2)). If your Hak Pakai is over someone’s Hak Milik, you sell the years left, and buyers will study the renewal terms. If it is on State land, for example after a change of title, an Indonesian buyer can apply to change it into HGB (Permen art. 158); ask the PPAT how this works in your case. That article does not cover a change into Hak Milik, so don’t promise a buyer a return to freehold.

Hak Pakai vs leasehold: which suits you?

• Hak Pakai suits you if you live in Bali or plan to, want a registered title for your home, and can spend at least IDR 5 billion.
• A leasehold suits you if your budget is lower, or you want a holiday home, several properties, land to build on or rental income (if the lease and licenses allow).

More in our guide to leasehold vs freehold in Bali.

Does buying a house in Bali give you a visa?

No. A villa or other landed house does not qualify you for the Golden Visa or the Second Home visa; their only property route is an apartment of at least USD 1 million (for the Golden Visa, only in its 10-year tier). See our guide to Bali visas for living.