The 27 + 25 Year Leasehold in Bali, Explained: What a Foreign Buyer Actually Holds

A foreign buyer in Bali does not own the land outright. What you buy is a leasehold: a registered contract that gives you the right to use, live in, let and transfer the property for a fixed number of years. At Puri Sidem that term is 27 years with a guaranteed 25-year extension, 52 years in total.

That is not a weakness of one project; it is how Indonesian property law works for non-citizens. For a foreign buyer it will always be leasehold, not freehold, so the useful question is how strong this particular lease is.

Full land ownership in Indonesia, Hak Milik, is reserved for Indonesian citizens. A foreigner who wants a villa therefore has three realistic routes: a leasehold contract, a right-of-use title held through residency, or an Indonesian company with foreign shareholders (PT PMA) that holds the property.

Leasehold is the most common and the simplest of the three. It needs no company, no local director and no corporate accounts, which is why it is the standard route for buyers who live abroad. It is also why you should be wary of anyone promising a foreigner outright ownership of land: ask whose name is on the land certificate.

Bali leases are often advertised by their longest possible total. A '50-year lease' can turn out to be a 25-year term plus extensions that the landowner may or may not grant later, at a price nobody has fixed. On paper it is 50 years; in practice you are secured for 25.

The question that matters is which years are guaranteed in writing today. At Puri Sidem the 25-year extension is guaranteed in the contract from the outset, so the 52-year horizon does not depend on a future negotiation. The detailed extension terms are part of the contract and we go through them with you on a call.

1. When the clock starts. Does the term run from signing, or from handover? On an off-plan purchase, years spent waiting for construction can quietly come off your lease.

2. Whether the extension is guaranteed. Look for wording that grants the extension, with its terms set now — not 'may be extended subject to agreement'.

3. Zoning. Short-term letting is only legal in certain zones under the regional spatial plan (RTRW). If you may ever let the property, confirm the zoning of the plot, not just of the area. Puri Sidem sits in a zone where short-term letting is permitted.

4. Who signs as lessor, and whether that person or entity actually holds the land title.

5. An independent review. Have a notary or lawyer who works for you, not for the seller, read the contract before any deposit is paid.

Handover at Puri Sidem is scheduled for July–September 2027. Each residence is delivered turnkey: full kitchen, laundry, all furniture and appliances, ducted air conditioning, a private pool and a jacuzzi. You arrive with a suitcase.

Construction is carried out by Tata Mulia, an Indonesian contractor with more than 30 years of activity and over 300 completed projects, under the personal supervision of the founder, Ilia Siniak. Dated site videos are published on this website so progress can be checked rather than taken on trust.

Owners decide one thing: whether to live in the residence or have it let. BFD's own management company handles everything else — guests, staff, maintenance, accounting, taxes and Indonesian compliance — and the members-only Wellness Club (restaurant, lounge, private spa, Ayurveda floor, concierge, butler and driver) is run by the same operator.

If you would like to see the contract structure, the extension terms or how management works in detail, book a call or write to us on WhatsApp. Ilia or a member of the team will walk you through it.