How does Hak Pakai work, and who can actually get it?

The one route that registers land in a foreigner's own name. Requires residency, and most people are never told it exists.

Hak Pakai is a right to use land, registered at the land office, with a certificate issued in your own name. Not a company's. Not a nominee's. Yours.

Agents rarely lead with it because it does not work for rental businesses and it requires residency — so it fits fewer clients than a lease does.

Requirements

A valid KITAS or KITAP. Second Home Visa holders qualify. A tourist visa does not.
The property must be residential and meet a minimum value. In Bali this is commonly applied at around IDR 5 billion for a landed house and IDR 2 billion for an apartment — set by ministerial decree and revised periodically, so confirm the current figure with your notary rather than trusting any website, including this one.
One property per foreigner or family.

Term

30 years, extendable by 20, renewable for a further 30 — a maximum of 80 years under PP 18/2021. The extensions are administrative rather than a negotiation with a private landowner, which is the structural advantage over leasehold.

What you can do with it

Live in it. Sell it — to another eligible foreigner, or to an Indonesian who can convert it back to Hak Milik. Pass it to your heirs. Use it as collateral, because unlike leasehold, Hak Pakai can carry a registered mortgage.

What you cannot do is run a licensed short-term rental business from it. That needs a company.

The residency trap

Your eligibility is tied to your stay permit. If your KITAS lapses and is not replaced, you no longer qualify to hold the title, and the law expects a foreign holder who has ceased to qualify to dispose of the property within a year.

In practice this is unevenly enforced, but building a long-term plan on uneven enforcement is how people end up in trouble. If you take the Hak Pakai route, treat maintaining your residency as part of holding the asset.

How it compares

Against leasehold: a real registered title, mortgageable, administrative renewals instead of a private negotiation, but a higher entry price and residency required, and you pay 5% BPHTB on acquisition where a lease pays none.

Against a PT PMA: much simpler and cheaper to run — no quarterly investment reports, no corporate tax returns, no annual accounting — but no rental business.