Hak Pakai over Hak Milik/ equivalent freehold title for non-Indonesian buyers
The leading ownership structure now permitted by the National Land Agency in Bali is known as the Hak Pakai over Hak Milik title.
The Hak Pakai title is the government sanctioned method for foreign purchasers to acquire the exclusive right of use over Hak Milik land which is registered in a separate certificate of title issued in the name of the foreigner.
The Hak Pakai title differs from a lease in that it is a registered proprietary interest in the Hak Milik land rather than an unregistered interest. A foreign purchaser is permitted to hold one Hak Pakai title in Indonesia at any time.
The title can be mortgaged and is freely transferable to another foreigner, an Indonesian National or an Indonesian company. At the election of the purchaser, the freehold Hak Milik owner will grant the purchaser a Hak Pakai title of an initial 25 year term with three prepaid twenty-five year renewals thus providing one hundred years of secure ownership tenure to the LIV villa and land package.
Given the security and transferability of the Hak Pakai title, LIV Bali recommends this structure.