In Indonesia, including Bali, land ownership (Hak Milik / Freehold) is reserved for Indonesian citizens. Foreign investors, however, have two well-established and legally recognized ownership structures available.

Leasehold (Hak Sewa) – The Most Popular Option

The most common structure among foreign investors is Leasehold.

In Bali, lease terms are typically granted for 25–30 years upfront, with a contractual right to extend. In some of the other destinations we work with, lease periods of 50–80 years are also available.

In practice, leasehold means:

-You lease the land for a fixed term

-You own the building (villa/apartment) constructed on the land

-You have the right to resell your asset

-You may include the asset in inheritance planning

-You may transfer contractual rights (subject to agreement terms)

Extensions are typically negotiated at market value and often range around 20-25% of the property’s value at the time of extension. We always recommend ensuring the contract includes a “guaranteed priority extension” clause, which secures the investor’s first right to renew.

Company Ownership (PT PMA Structure)

Foreign investors seeking longer-term control may establish a foreign-owned company (PT PMA). The company then holds the property under Right to Build (HGB – Hak Guna Bangunan).

The HGB structure is typically granted as:

-30 years initial term

-Extendable for 20 years

-Renewable for an additional 30 years

This creates a potential total control period of up to 80 years.

It is important to note that the PT PMA must remain operational and compliant for as long as it owns the property.

This structure involves higher setup and maintenance costs, but may be suitable for investors with multiple assets or long-term strategic plans in Indonesia.

Currently, our investors in Bali are achieving an average 9–12% net annual ROI, depending on the asset and location.

In high-potential projects secured at early-stage or pre-sale pricing, 13–16% net ROI is achievable, particularly when supported by strong management and high occupancy.

Key drivers of performance include:

-Strategic location

-Experienced developer with proven track record

-Professional property management

-Clear concept and defined target audience

-Competitive entry price

In emerging markets near Bali — such as Sumba, Nusa Penida, and Lombok — current short-term rental projections range between 7–13%, with significant projected capital appreciation of 2X and 3X as infrastructure and tourism expand.

In more established luxury destinations such as the Maldives, opportunities under $1M USD have recently emerged, with projected annual returns in the 10–13% range, supported by strong global tourism demand and 99 years leasehold.

At Sunchasers, we focus on sourcing vetted opportunities with strong fundamentals, balancing yield performance with long-term capital growth potential.

The purchase process can be completed in as little as 2–3 weeks, depending on the asset and structure.

Here is the typical process:

1.Select the location, project, and unit

2.Reserve the unit with a fee (typically $1,000–$3,000), paid directly to the developer

-The reservation fee is credited toward the down payment

3.Conduct due diligence

– Review documentation package and contracts (1–2 weeks depending on legal review)

4.Sign Investment and Management Agreements

-Signed electronically or in person (1–3 days)

5.Pay the down payment (typically 20–30%)

6.For completed units: pay in full and sign the Lease Right Transfer before a notary, as well as settle applicable notary fees

With Sunchasers guiding the process, investors benefit from smoother negotiations, clearer communication, and stronger leverage.

Our experts have experience on scoring the best deals and terms for our clients and also making sure that we are on the buyer’s side and protect their interest first and foremost! Developers are interested to listen to us and agree better terms since we continuously bring new business to them. So, their strategy always that they can lose one client but cannot risk to lose an agent. That’s how buying with Sunchasers by your side becomes an unfair advantage.