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Legal
Hak Pakai: the right-to-use title foreigners can hold
The one title a foreigner may hold personally, how long it runs, and what happens if the residence permit behind it lapses.
Updated 24 September 2026 · 5 min read
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Where it fits
Hak Pakai sits between a lease and company ownership. It is stronger than a lease because it is a registered land right in your own name, and weaker than Hak Guna Bangunan because it cannot carry a business. For a foreign resident who wants a home and no company, it is often the right answer.
| Leasehold | Hak Pakai | PT PMA (HGB) | |
|---|---|---|---|
| Needs a residence permit | No | Yes | No, but running the company does |
| Registered in your own name | Contract, not a registered title | Yes | Registered to the company |
| May earn rental income | If the deed permits | No | Yes |
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How long it actually runs
Under PP 18/2021, Hak Pakai granted over state land follows a three-stage structure: an initial grant, an extension applied for before it expires, and a renewal that is a fresh grant rather than an automatic rollover.
| Stage | Term | Notes |
|---|---|---|
| Initial grant | 30 years | Over state land |
| Extension | 20 years | Applied for before the initial term expires |
| Renewal | 30 years | A fresh grant, not automatic |
When the underlying land is privately owned instead
Hak Pakai can also be granted over land still held as Hak Milik by an Indonesian owner, through a notarised agreement between the two of you that is then registered at the land office — common for a single house plot rather than a development. The term and any extension there are set by that agreement rather than by the state-land schedule above, and sources commonly report a shorter initial cap, around 25 years, for this version. Ask your notary which basis applies to your plot before assuming the full state-land structure carries over.
Who actually qualifies
A foreign individual holding a valid KITAS or KITAP, domiciled in Indonesia, qualifies. The Second Home Visa is built on the same eligibility: its property route requires holding a Hak Pakai property worth at least USD 1 million, which only works because the visa itself supports Hak Pakai in the first place. Companies and representative offices have separate routes not covered here.
What happens if the residence permit lapses
Hak Pakai is not a status independent of immigration. If you stop qualifying — a KITAS lapses and is not renewed, for instance — the regulation gives one year to transfer or dispose of the right to someone who does qualify. Miss that window and the outcome depends on what the right sits on: over state land, it is taken over by the state and the property auctioned; where it was granted by private agreement over an owner’s Hak Milik land, it reverts to that owner instead. The one-year clock is real, not a formality, and it is worth planning for what happens if a permit renewal is ever delayed.
Common questions
Can I rent out a property held under Hak Pakai?
No. It is a residence title. Letting requires a structure that can lawfully earn income, normally a PT PMA.
How long does Hak Pakai last?
Up to 80 years over state land — a 30-year initial grant, a 20-year extension, and a 30-year renewal. Granted over privately held Hak Milik land instead, the term is set by agreement with the owner and is commonly reported shorter, around 25 years.
What happens to my Hak Pakai if I lose my KITAS?
You have one year to transfer it to someone who qualifies. After that, Hak Pakai over state land is taken over by the state and auctioned; Hak Pakai over privately owned land reverts to the landowner.
Do I need a KITAS specifically, or does the Second Home Visa also work?
A valid KITAS or KITAP satisfies the requirement. The Second Home Visa’s own property route is built on holding a Hak Pakai property, so it supports eligibility too — confirm the specific basis with your notary.
Can Hak Pakai be inherited?
It depends on whether the heir themselves qualifies to hold it, since the right is tied to residence status rather than to the person alone. See the guide on inheritance and Bali property for how this plays out against the other structures.
What is the difference between Hak Pakai and a PT PMA holding HGB?
Hak Pakai is registered to you personally and is for residence only. A PT PMA holds Hak Guna Bangunan through a company and can lawfully earn rental income — but it comes with the company’s own capital and filing obligations. See the guide to PT PMA for the trade-off.
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General information, not legal advice. The shorter term reported for Hak Pakai granted over privately held Hak Milik land is drawn from secondary legal commentary rather than a single confirmed government table; verify the applicable term for a specific plot with a notary (PPAT).