Ownership
What a foreign buyer actually receives.
We publish the whole ownership position up front — what you receive, how long you hold it, what happens when you sell, and who executes it. Read it here, in full, before you ask us a single question.
See the four titles →The Casa Lilee land is certified SHGB today — Hak Guna Bangunan, the right to build on and own the buildings. That is the title as it stands, and it is held by the company, not by a private individual.
You take title in your own name. An Indonesian national converts it to Hak Milik. A foreign national holding a stay permit takes Hak Pakai. A foreign national without one takes Hak Sewa. All three are set out below with their terms.
Every condition is on this page. Term lengths, what transfer costs, what happens on resale and at the end of the term — published, not disclosed on request.
We use registered titles only, in the buyer's own name, and we will hand your lawyer every document they ask for.
The four titles, and what separates them
Indonesian land law recognises several distinct rights over land. They are not grades of the same thing — they differ in who may hold them, how long they last, and what happens at the end. The row highlighted below is the title on the land today.
Land rights under the Basic Agrarian Law (UUPA No. 5/1960) and Government Regulation No. 18/2021. Scroll the table sideways to see all four columns.
| Title | Who may hold it | Term | What it gives you |
|---|---|---|---|
| Hak Milik Freehold | Indonesian individuals only. Not available to foreign nationals, and not to a PT PMA. | Perpetual | Absolute ownership of land and buildings. Inheritable, sellable, mortgageable without term limit. |
| Hak Guna Bangunan SHGB · current title | Indonesian individuals and Indonesian legal entities, including a PT PMA. Not a foreign individual directly. | 30 yrs +20 extension +30 renewal |
The right to build on and own the buildings. Sellable and mortgageable. The land beneath remains state land. |
| Hak Pakai Right of use | Foreign nationals holding a valid Indonesian stay permit (KITAS or KITAP), and foreign-domiciled entities with a representative office. | 30 yrs +20 extension +30 renewal |
The right to use and occupy, and to own the building. Sellable and inheritable. Can be mortgaged with an Indonesian lender. |
| Hak Sewa Leasehold | Foreign nationals, with no stay-permit requirement. | By agreement | A contractual right to occupy for the agreed term. Not a registered land right — it is a lease, and it is the weakest of the four. |
Hak Pakai and Hak Sewa are both time-limited. Extension and renewal are provided for in the regulation and granted as a matter of course where the conditions are met and the fees are paid — they are applications rather than automatic entitlements, so they are worth diarising. Held properly, the term runs for decades and passes to your heirs; we would simply rather you knew the mechanism than heard it called freehold.
Which one applies to you
Three routes, and there is one for every buyer. Yours follows from your nationality and your immigration status, so you can work out where you land before you speak to anyone.
SHGB is converted to freehold in your name. Perpetual, inheritable, no term to manage. This is the strongest position available on the project.
A registered land right in your own name, for a fixed term with extension and renewal provided for. You own the building outright. Provincial minimum-value thresholds apply to foreign residential buyers.
A lease for the agreed term. The simplest route and the one that requires nothing of your immigration status — and correspondingly the least secure. If you intend to hold long-term, get the stay permit and take Hak Pakai instead.
A stay permit that lapses does not void a Hak Pakai already granted, but it affects renewal. If you buy on Hak Pakai and later leave Indonesia permanently, the regulation requires the right to be released or transferred within a set period. Ask your own counsel what that period is for your situation before you sign, not after.
What happens at transfer
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Reservation and due diligence
You reserve a villa. Your lawyer and ours check the certificate, the zoning and the permits. Every document referenced on this site is available to your counsel on request, before you commit money beyond the reservation.
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Title route confirmed
Your nationality and stay-permit status determine the route from section 02. This is fixed in the sale agreement, not left to be worked out later.
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Notaris / PPAT executes the deed
Conversion and transfer are executed by a licensed Indonesian land deed official. This cannot be done privately between buyer and seller — it is not valid without them.
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Registration at the Land Office
The new certificate is issued in your name at the Badan Pertanahan Nasional. You hold the certificate. Until it is issued, you do not own the property, whatever the contract says.
Selling, inheriting, and the end of the term
- You can sell. Hak Pakai and SHGB are both transferable. You sell to whoever is legally able to hold the title you are selling — which narrows your buyer pool relative to a freehold, and that is a real cost worth pricing in.
- You can pass it on. Hak Pakai is inheritable. An heir who does not qualify to hold it must transfer or release the right within the period the regulation sets.
- At the end of the term, the right is extended or renewed on application, or it reverts. Extension is normal practice where conditions are met and fees are paid. It is not automatic, and it should be diarised, not assumed.
- Hak Sewa ends when the lease ends. Renewal depends on the terms you negotiated at the start. Read that clause harder than any other in the contract.
Nominee structures
Every certificate we transfer carries the buyer's own name. It is the one thing we will not trade away, and it is worth explaining why.
A nominee arrangement puts land in an Indonesian national's name while a private side agreement gives control to the foreign buyer. It is common in Bali and widely marketed as normal. The law is clear on it: Article 26(2) of the Basic Agrarian Law voids transfers that indirectly convey freehold to a foreign national, and the courts have enforced that — the land falls to the state and the buyer's money is not returned.
Under Indonesian law the person named on the certificate is the owner, and everything that happens in their life — creditors, divorce, heirs, a change of mind — reaches the property. A registered title in your own name puts all of that beyond reach.
A Hak Pakai term on a certificate in your own name is worth more than a notional freehold that no court will uphold. You hold the paper, you can sell it, and you can leave it to your children. We would rather build you something you genuinely own.
Take your own advice
Legal and tax advisory on the transaction is included with every purchase, at no cost to you, and we will assist with opening an Indonesian bank account if you need one. That advisory works for the transaction.
Instruct your own lawyer as well. Ours is good, and ours still works for the transaction — on a purchase this size you want one opinion that answers only to you. Bring them in early, and we will hand your counsel every document they ask for, in whatever form they want it.
This page describes the general framework of Indonesian land law as it stands under the Basic Agrarian Law No. 5/1960 and Government Regulation No. 18/2021. It is not legal advice, it is not a substitute for advice on your own circumstances, and the regulations change. Terms, thresholds and eligibility must be confirmed by a licensed Indonesian notaris for your specific position before you commit funds.