Hak Pakai (Right to Use) Explained: When It Works for Foreigners in Bali

Hak Pakai — the "right to use" — is the one land title a foreigner can hold in Bali in their own name, registered at the land office, without setting up a company. For the right buyer it is a genuinely strong option: a state-registered title running in stages up to 80 years. But Hak Pakai for a foreigner comes with conditions that rule it out for many: you need an Indonesian residence permit, the property must clear a minimum value threshold, and the title is intended for residential use, not for running a rental business. This guide explains how Hak Pakai works in 2026, who actually qualifies, and how it compares with leasehold and the PT PMA route.

What Hak Pakai actually is

Indonesian land law is a hierarchy of rights rather than a single concept of ownership. At the top sits Hak Milik (freehold), reserved for Indonesian citizens. Below it are derivative rights that can be granted over state land or over someone's freehold — and Hak Pakai, the right to use, is the one open to foreign individuals who are legally resident in Indonesia.

Held as a registered title, Hak Pakai gives you a certificate in your own name at the National Land Agency (BPN). That is a fundamentally different instrument from a leasehold, which is a private contract between you and a landowner. A registered title survives the landowner's death, divorce, or change of heart in a way a contract must be drafted carefully to match. You can live in the property, renovate and rebuild (with proper permits), sell the title to another eligible holder, and pass it to heirs who meet the requirements.

The trade-off is eligibility. Where anyone can sign a lease, Hak Pakai is conditional — on residency status, on property value, and on use.

Who qualifies: the residency requirement

The core condition: a foreigner holding Hak Pakai must have a legal basis to reside in Indonesia. In practice this means a KITAS (temporary stay permit) or KITAP (permanent stay permit); national regulations have broadened the definition of eligible foreigners, but land offices commonly look for a proper residence permit, and requirements can be applied differently from office to office — your notary/PPAT will confirm what the local land office accepts.

Two practical implications follow. First, Hak Pakai is a title for people actually living in Indonesia — retirees on a retirement KITAS, investors with an investor KITAS, employees, second-home visa holders — not for a buyer who visits twice a year on a tourist visa. Second, your continued eligibility matters over time: structure your affairs so your residency doesn't lapse casually, and take advice on what happens to the title if you leave Indonesia permanently, since the law expects a non-eligible holder to transfer the property within a set period.

Duration: 30 years, extendable in stages to 80

Under Government Regulation 18/2021, Hak Pakai over land for foreigners runs in the same staged pattern as HGB: an initial grant of up to 30 years, an extension of up to 20 years, and a renewal of up to a further 30 years — a total of up to 80 years. Each stage is an application to the land office, granted where the holder remains eligible and the land is used as intended; none of it is automatic, but for a compliant residential owner the process is routine rather than adversarial.

Eighty years of registered tenure is, for any realistic personal horizon, ownership-grade security. It comfortably exceeds typical leasehold terms of 25–30 years, and unlike a lease extension, the counterparty for your extension is the state land system, not a private landowner with negotiating leverage.

The minimum property value — and other conditions

Indonesia does not want the foreigner-eligible segment competing with local buyers for ordinary housing, so Hak Pakai purchases by foreigners carry minimum property values set by regulation and varying by province. For Bali, the commonly applied threshold for a landed house has been in the range of several billion rupiah (figures around IDR 5 billion — roughly USD 300,000+ — are commonly cited; thresholds are updated periodically, so verify the current number with your notary before planning around it). Cheaper properties simply are not available to you through this route.

Other conditions to plan around:

• Use. The title is granted for residential purposes. Running the property as a licensed short-term rental business is the domain of the PT PMA/HGB structure; if rental income is the point of your purchase, Hak Pakai is usually the wrong vehicle. Occasional letting questions sit in a regulatory grey area — take specific advice rather than assumptions.
• One property logic. The framework is built around a foreigner's own residence, not a portfolio.
• Underlying land. Hak Pakai for a foreigner is typically created over state land or granted over Hak Milik land by agreement with the owner — the conversion happens at the land office through the notary/PPAT, and the usual due diligence on certificate, zoning/ITR, and ownership chain applies in full before anything is converted.

Hak Pakai vs leasehold vs PT PMA

Factor	Hak Pakai	Leasehold (Hak Sewa)	PT PMA + HGB
Legal form	Registered title in your name	Private notarised contract	Title held by your company
Residency required	Yes — KITAS/KITAP	No	No
Minimum value	Yes, set by province	No	Investment plan threshold instead
Duration	Up to 80 years in stages	Typically 25–30 years, extendable	Up to 80 years in stages
Commercial rental	Not the intended use	Possible with the right contract and licensing	Yes — the standard business route
Overhead	Low after purchase	Minimal	Significant annual compliance
Extension counterparty	State land office	Private landowner	State land office

The honest summary: Hak Pakai is the premium personal option for residents buying above the threshold; leasehold is the flexible default for everyone else; the PT PMA is for businesses. Detailed guides on each are in our guides section.

When Hak Pakai works — and when it doesn't

Hak Pakai tends to be the right answer when all of these line up: you hold or will hold a KITAS/KITAP; the home you want clears the provincial value threshold; you are buying primarily to live in it; and you value a registered title over contractual control enough to accept the eligibility conditions. A retiree settling in Sanur, or a founder on an investor KITAS building a family home in Umalas, fits this profile exactly.

It is usually the wrong answer when the property is below the threshold, when you have no residence permit and no plan to get one, or when the villa's job is to earn rental income — the first two make you ineligible, the third puts you in PT PMA territory. And for buyers who want simplicity above all, a well-drafted leasehold on vetted land delivers most of the practical benefits with none of the eligibility maintenance; the capital saved often goes into the build itself, where 2026 construction costs run $600–800/m² for essential specification, $900–1,300/m² premium, and $1,400–2,000/m² luxury. You can model both paths in the villa cost calculator.

Whichever structure you choose, it sits on top of the same foundation: land that has passed real due diligence. A registered title over disputed or wrongly zoned land is a registered problem. Teville's land list exists precisely because most plots offered on the open market fail at this stage.

FAQ: Hak Pakai for foreigners in Bali

Can I get Hak Pakai on a tourist visa?

No. Hak Pakai for foreign individuals is tied to legal residence in Indonesia — in practice a KITAS or KITAP, with some land offices applying the requirement strictly. If you are not resident and do not plan to be, a leasehold (no residency requirement) or a PT PMA structure are the realistic routes to a Bali villa.

How long does Hak Pakai last for a foreigner?

Up to 80 years in total under Government Regulation 18/2021: an initial period of up to 30 years, an extension of up to 20, and a renewal of up to 30 more. Each stage is applied for at the land office and granted to eligible, compliant holders — a routine process for a residential owner in good standing.

Can I rent out a Hak Pakai villa on Airbnb?

Hak Pakai is granted for residential use, and running commercial short-term rental on it is not what the title is for — licensed rental operations in Bali are structured through business entities holding appropriate titles and permits. If rental income is central to your plan, price the PT PMA route instead, and take specific legal advice before letting a Hak Pakai property at all.

Is Hak Pakai better than leasehold?

Different, not universally better. Hak Pakai gives a registered state title and up to 80 years of tenure, but demands residency and a minimum property value. Leasehold is open to anyone, cheaper to enter, and quicker — but it is a private contract whose strength depends on drafting and on the landowner. Residents buying above the threshold should price both.

How Teville fits in

Teville builds turnkey villas on legally vetted land and supports both structures: clients hold our plots as leasehold, and those with residency who want Hak Pakai over a suitable plot get the certificate, zoning, and ownership-chain verification done before any conversion is attempted. Tell us your situation via contacts and we will map which title fits your case — then show you what we would build on it.