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With over 17,000 islands, this enchanting nation is a kaleidoscope of landscapes, cultures, and adventures.
From the emerald rice terraces to the fiery sunsets and the rich tapestry of traditions, Indonesia is a land of endless marvels. You can dive into its crystal-clear waters, hike through the lush jungles, or get lost in the charming chaos of the streets. Every corner reveals a new facet of this magical wonderland.
The friendly Indonesians are known for their warm hospitality, friendly smiles and helpfulness.
Bali is top rated holiday destination with developed touristic infrastructure and favourable all-year-round tourist season, steady demand from Australian, Chinese, Korean, Japanese and New Zealand markets, low operating costs, a simple tax system and growing number of tourist.
Lombok, located east of Bali, is a captivating island renowned for its untouched natural environment, making it a sought-after travel destination over the past decade. From vast rice fields to rugged landscapes and the majestic Mount Rinjani volcano, Lombok offers a myriad of breathtaking natural attractions.
ORO STAR INTERNATIONAL PROPERTIES
Indonesia has become a very attractive country for foreign investment, its strong economy, stable politics, its natural resources such as oil, gas, mining… and the forecast of being the fifth world economic power by the end of this decade, make it a very attractive destination to invest.
Lombok is the most emerging island in the country, it is located between the islands of Bali to the west and Sumbawa to the east. Kuta – Lombok is the area with the most economic projection of the island and at this moment it is already the most touristy.
The objective of the Indonesian government in Lombok is to boost the tourism sector (10% of GDP) and decentralize it from chaotic Bali, which is why a large investment is being made in this area.
Seamless Ownership Process: We understand the importance of a hassle-free investment journey. That’s why we offer comprehensive assistance with all the paperwork required for owning this piece of paradise. Our collaboration with local agencies ensures a smooth and efficient process, providing you with the peace of mind to focus on your investment vision.
Turn Dreams into Reality: Partnering with reputable building companies, we empower you to bring your dream to life on this paradisiacal island. From architectural design to construction, our collaborative approach ensures that your investment is not just a piece of land but a tangible expression of your vision.
In Indonesia, foreign investors and individuals cannot directly own freehold land (Hak Milik). Instead, the most common legal structure for acquiring property is through a leasehold agreement (Hak Sewa). This allows individuals, including foreigners, to lease land or properties for a specific period, with the option of extending the lease in accordance with Indonesian regulations.
Typically, leasehold agreements for villas and other properties in Indonesia are granted for periods ranging from 25 to 30 years. However, many agreements include pre-negotiated extension options, allowing the lease to be extended for additional 15 to 30 years. The total maximum lease period can range between 50 and 80 years, depending on the terms agreed upon between the property owner and the lessee.
Some common lease structures include:
Initial Lease Term: 25 years
First Extension: 15–20 years (option to renew)
Second Extension: 15–30 years (if agreed upon)
The extension terms, including price adjustments, are typically defined within the original lease agreement to ensure clarity and transparency.
Legally Secure for Foreigners – Leasehold is a fully legal and recognized structure that enables foreign investors to enjoy long-term use of property in Indonesia.
More Affordable Than Freehold – Leasehold properties are generally more affordable than freehold, making them an attractive investment option.
Flexible Investment – With clearly defined lease terms, foreign investors and expatriates can enjoy luxury villas, holiday homes, or rental properties without requiring local ownership structures.
Extension Possibilities – The lease agreement typically includes an option to extend, allowing tenants to continue using the property long term.
No Local Nominee Required – Unlike other ownership structures, leasehold properties do not require Indonesian nominees, making the process simpler and more secure.
The lease agreement is signed between the landowner (usually an Indonesian citizen or company) and the lessee (foreigner or investor).
The lessee pays a one-time lease fee for the initial term (e.g., 25 years).
Additional annual maintenance or management fees may apply if the villa is part of a resort or community.
If the lease includes an extension clause, the lessee can renew the contract for an agreed fee before the initial lease expires.
The lessee can also sell or transfer the remaining lease period to another party, making it a valuable investment option.
Legal Due Diligence – Ensure the land has a clear title and the agreement is properly drafted by a notary (PPAT).
Land Ownership Status – Confirm that the land is not under dispute and that the lessor is the rightful owner.
Extension Terms – Negotiate and include specific terms for lease extensions within the contract.
Investment Potential – Consider rental income possibilities if you plan to sublet the villa as a vacation rental.
Leasehold properties offer a fantastic way for foreigners to legally live, invest, and enjoy luxury villas in Indonesia without complex ownership restrictions. Whether you’re looking for a long-term residence, a vacation home, or an investment opportunity, leasehold properties provide a hassle-free solution with clear legal protection.
If you’re interested in renting a villa on a leasehold basis, we offer a variety of premium properties with flexible terms. Contact us today to explore your options!
In Indonesia, leasehold property is a popular way for foreigners to legally acquire long-term rights to use land or property since direct freehold ownership (Hak Milik) is restricted to Indonesian citizens. Leasehold agreements allow individuals or businesses to lease land or villas for an extended period, making it a viable solution for expatriates and investors looking to establish a presence in Indonesia.
Lease Term: Typically, leasehold agreements range from 25 years, with an option to extend for an additional 25 years, and in some cases, up to 30 more years (making a total of 80 years). The terms depend on the contract negotiated with the landowner.
Legal Framework: The lease agreement is a legally binding contract between the landowner (freeholder) and the lessee (tenant). It should be properly notarized to ensure legal security.
Property Rights: The leaseholder has the right to use, rent out, renovate, or operate a business on the leased land, depending on the contract terms. However, they do not own the land itself.
Renewal & Extension: Many contracts include an automatic extension clause, but it is crucial to negotiate extension terms clearly from the beginning.
Inheritance & Resale: Leasehold properties can be sold or transferred to another party within the lease term, making them a flexible investment. However, leaseholders cannot pass them down as an inheritance unless specified in the contract.
Foreign Ownership: Since foreigners cannot own freehold land, leasehold is the most common way for expatriates to legally acquire property in places like Bali, Lombok, and Jakarta.
✔️ Legally Secure for Foreigners – Allows expats and investors to legally reside or operate a business in Indonesia.
✔️ Lower Upfront Costs – More affordable than purchasing freehold property through an Indonesian nominee structure.
✔️ Flexibility – Can be resold, extended, or subleased depending on agreement terms.
✔️ Investment Potential – Popular for vacation rentals and businesses, especially in tourist hotspots like Bali.
🔹 Due Diligence: Verify the land title, contract terms, and property ownership before signing any agreement.
🔹 Notarization: Ensure that the lease agreement is drafted and notarized by a certified Indonesian notary.
🔹 Extension Clauses: Clearly negotiate renewal terms in the lease contract to avoid legal issues later.
🔹 Legal Assistance: Work with a professional real estate lawyer to safeguard your investment
In Indonesia, leasehold property is a popular way for foreigners to legally acquire long-term rights to use land or property since direct freehold ownership (Hak Milik) is restricted to Indonesian citizens. Leasehold agreements allow individuals or businesses to lease land or villas for an extended period, making it a viable solution for expatriates and investors looking to establish a presence in Indonesia.
Lease Term: Typically, leasehold agreements range from 25 years, with an option to extend for an additional 25 years, and in some cases, up to 30 more years (making a total of 80 years). The terms depend on the contract negotiated with the landowner.
Legal Framework: The lease agreement is a legally binding contract between the landowner (freeholder) and the lessee (tenant). It should be properly notarized to ensure legal security.
Property Rights: The leaseholder has the right to use, rent out, renovate, or operate a business on the leased land, depending on the contract terms. However, they do not own the land itself.
Renewal & Extension: Many contracts include an automatic extension clause, but it is crucial to negotiate extension terms clearly from the beginning.
Inheritance & Resale: Leasehold properties can be sold or transferred to another party within the lease term, making them a flexible investment. However, leaseholders cannot pass them down as an inheritance unless specified in the contract.
Foreign Ownership: Since foreigners cannot own freehold land, leasehold is the most common way for expatriates to legally acquire property in places like Bali, Lombok, and Jakarta.
Indonesia has two types of rights that can be granted for the use of land: The right to cultivate (Hak Guna Usaha) and the right of use (Hak Pakai). These rights allow individuals or entities to utilize lands owned by others for specific purposes such as farming or building homes respectively, without owning them outright.
As mentioned earlier, foreigners cannot buy freehold properties directly in Indonesia. However, there are some approaches foreigners can use in order to make it easier to invest. One common approach is setting up a local PT PMA Company with 100% foreign ownership which then purchases property on behalf of its foreign owners. Another option involves leasing out properties from locals under long-term contracts while the locals still technically own the property, but you arrange a contract so you can use the property for rentals and pay an agreed upon fee to the actual owner.
Investing in real estate within Indonesia requires careful consideration. Before making any decision it’s vitally important to also understand how laws governing these investments work so that you aren’t breaking any laws, taking advantage of the native citizens, or paying less in taxes to the Indonesian government than you owe. While there are regulations and considerations for foreigners investing in Bali, Lombok or other islands of Indonesia, once you have this part set up, you can move on to the real fun – making money from your investments.
