Hak Sewa is the leasehold structure most foreign buyers use to hold property in Lombok and Bali. Here is how it works, why it is used, and what to check before you sign.
Hak Sewa is the Indonesian "right to lease": a leasehold structure that grants the holder a defined-term right to use and occupy land and the buildings on it. It is the most common way for foreign investors to hold resort and villa property in Lombok and Bali, because foreign individuals cannot hold freehold (Hak Milik) title directly under Indonesian law.
Why foreigners use Hak Sewa
Indonesia's Basic Agrarian Law reserves Hak Milik (freehold) for Indonesian citizens. Foreign buyers therefore use time-bound rights instead, most often Hak Sewa (leasehold) or, in some structures, Hak Pakai (a right to use). Hak Sewa is widely used across Lombok and Bali because it is straightforward to execute, clearly time-limited, and contractually defined, which makes the rights and obligations of both parties easy to document.
| Title | Who can hold it | Nature |
|---|---|---|
| Hak Milik | Indonesian citizens | Freehold ownership |
| Hak Guna Bangunan | Indonesian companies / PT PMA | Right to build, fixed term |
| Hak Pakai | Foreigners (with conditions) | Right to use, fixed term |
| Hak Sewa | Foreigners and others | Leasehold / right to lease, fixed term |
How Hak Sewa works at Kapal Oasis
Kapal Oasis Resort Studios are offered on a 20-year Hak Sewa lease. The owner buys the leasehold interest, and the studio is operated by the developer, PRISA Resorts, within the resort rental pool. The owner receives a fixed 20% rental income on the purchase price each year and 30 nights of complimentary personal use.
- Transfer and resale: the leasehold interest can be sold at any point during the 20-year term. The Studio Rental Agreement, including the fixed 20% rental income, transfers with the studio to the new buyer.
- End of term: no residual capital sum is paid at lease end. The fixed rental income across the 20-year term represents the full financial return. The structure is an income product, not a freehold purchase.
What to check before you sign
- Engage independent legal counsel in both Indonesia and your home jurisdiction.
- Verify the underlying land certificate, the lease term and any renewal mechanics.
- Read the Studio Rental Agreement, which sets out the fixed return, payment cadence and currency.
- Only ever transfer funds to accounts confirmed in writing through official channels. See our Anti-Fraud Notice.
For Kapal Oasis specifics, see Ownership and the FAQ.
Sources & notes
- This article is general information, not legal advice. Foreign land ownership in Indonesia is governed by the Basic Agrarian Law (Law No. 5 of 1960) and related regulations.
- Kapal Oasis ownership terms: see the Studio Rental Agreement provided at contract.
- Buyers should obtain independent legal advice in Indonesia and their home jurisdiction.
