Hak Sewa
Also called leasehold, long lease
Hak Sewa is leasehold: a contractual right to use land or property for an agreed period, available to anyone including foreigners and foreign entities, with no citizenship restriction.
Leasehold is the most common way foreigners hold Bali property, largely because it is the simplest. It is a contract rather than a registered ownership right, which is both its advantage and its weakness: it is quick and flexible to arrange, and its strength depends almost entirely on how well the contract is written.
Typical Bali leases run 25 or 30 years, often with an agreed extension. The extension clause is the part that matters most and is most often weak. A vague promise to renew at a price to be agreed later is not the same as an enforceable right to extend on defined terms.
Because a lease is contractual, the quality of the notaris and the diligence on the underlying title do the heavy lifting. You want to know who actually owns the land, that they have the authority to lease it, that there are no competing claims, and exactly what happens at the end of the term.
Where people get caught
Paying for a 25 year lease with an extension that is not properly secured, then discovering at year 24 that the extension price is whatever the landowner now says it is. Get the extension mechanism defined in the original contract, with a formula or a fixed figure.
Where this comes up
This is general information, not legal advice. Indonesian property law changes, and how it applies depends on your situation, your visa status and the specific plot. Always take advice from a qualified notaris before you commit money. Last checked 2026-07-30.