This page is orientation, not legal advice. Every deal we accompany is closed by a licensed notary (PPAT), and the route for your specific purchase goes into writing before you commit money.
Leasehold
The default route- Term
- Typically 25 to 30 years, fixed in the lease agreement
- Extension
- An extension option, and its price formula, can be written into the contract from day one. "Negotiable later" is not a formula.
- What you can do
- Hold, live in and rent out the property as an individual. No company, no residence permit required.
- Who sets it up
- A notary drafts and certifies the lease. Days to weeks, not months.
Hak Pakai
Registered right to use- Term
- 30 years, extendable by law: 20 more, then renewable again
- Extension
- Extensions are set in the land law itself, not only in your contract
- What you can do
- Hold a residential title registered on the land certificate in your own name. Requires a residence permit (KITAS or KITAP).
- Who sets it up
- A notary, then registration at the land office. Slower than a lease.
PT PMA
A company for a business- Term
- The company holds an HGB (right-to-build) title: 30 years, extendable
- Extension
- Extensions follow the title, held by the company for as long as it operates
- What you can do
- Own through a foreign-owned Indonesian company, build, and run rental as a licensed business.
- Who sets it up
- Company formation takes weeks and adds annual reporting. Worth it for a portfolio or a rental business, rarely for one villa.
If this page is why you were hesitating
Send the question. We answer for your specific case in plain words, including what the setup would cost and how long it would take, before you decide anything.
