Land Rights in Indonesia’s SEZs: HGB, Hak Pakai, and the 80-Year Question

Information, not advice: Bali SEZ Intelligence is an independent editorial guide — not a government body, zone operator, or licensed adviser. Incentives and regulations change and apply case-by-case; verify with the OSS system, official KEK channels, and licensed Indonesian counsel before acting. If you engage a partner we introduce, that partner may pay us a referral fee at no cost to you.

Land rights in Indonesia’s Special Economic Zones (Kawasan Ekonomi Khusus, or KEK) are governed by the same Hak Guna Bangunan and Hak Pakai framework that applies nationally, extended to a maximum cumulative tenure of 80 years under PP No. 18/2021. That ceiling is real — but how the 80 years is structured, who can access which title type, and what happens at the end of each cycle are questions the market answers poorly and government portals answer in bullet-point shorthand. This page provides the full mechanics for KEK Kura Kura Bali and KEK Sanur, with the one correction the industry consistently gets wrong: the 80-year single upfront grant is the IKN capital regime, not the KEK regime.

For investors, operators, and developers doing due diligence on hak guna bangunan kek or asking whether can foreigners get land rights in Bali SEZ, the practical answers depend on whether you are a company (PT PMA) or an individual, and on what the BUPP — the zone developer-manager — controls at the land level. We cover all of that below.

Indonesia’s Land Title Hierarchy: The Baseline

Indonesian land law sits under UU No. 5/1960 (Undang-Undang Pokok Agraria, the Basic Agrarian Law — UUPA). It establishes a hierarchy of titles, and the position a foreigner or foreign-owned entity can access is structurally limited at the top of that hierarchy.

Hak Milik (HM — Freehold Ownership)

The strongest title; perpetual. Available to Indonesian citizens only. Foreign nationals and PT PMA (companies with any foreign shareholding) cannot hold Hak Milik. This rule applies everywhere in Indonesia, including inside a KEK. There is no exception for special economic zones. Anyone claiming otherwise is incorrect.

Hak Guna Bangunan (HGB — Right to Build)

Grants the right to build on and use a parcel. Duration is limited and must be renewed. PT PMA can hold HGB. This is the standard title for commercial property and most residential development by corporate entities. Foreigners cannot hold HGB in their own name — only through a PT PMA structure.

Hak Pakai (HP — Right to Use)

Grants the right to use land for a specified purpose and duration. Individual foreign nationals can hold Hak Pakai under specific conditions — notably in the context of residential property in tourism zones, subject to minimum price floors and other requirements. Hak Pakai for institutional holders (the state, certain public bodies) can be perpetual; for private holders it is time-limited.

Hak Guna Usaha (HGU — Right to Cultivate)

Primarily for agricultural, plantation, or aquaculture land. Not typically relevant to KEK commercial tenants or tourism/health-sector operators, so not treated in depth here.

Hak Pengelolaan (HPL — State Management Right)

Held by state entities, regional governments, or BUPP (zone developer-managers). The BUPP at each Bali KEK holds HPL over the zone land, and individual titles (HGB, Hak Pakai) granted to tenants sit technically above or derived from this HPL. This is the root of the sub-HGB structure explained later.

The 80-Year Figure: What It Actually Means in a KEK

The kek.go.id incentives page states land rights up to 80 years. That number is accurate but requires unpacking, because “80 years” is presented in two very different ways in different regulatory contexts — and conflating them is a persistent source of confusion in the market.

KEK regime: 30 + 20 + 30 = up to 80 years

Under PP No. 18/2021 — the implementing regulation for the Cipta Kerja land provisions — Hak Guna Bangunan can be granted for an initial term of up to 30 years, extended for up to 20 years, then renewed for a further 30 years. Total maximum: 80 years across three sequential cycles. Hak Pakai for private entities follows a comparable long-tenure structure.

Each cycle is a separate legal act. The initial grant, the extension, and the renewal are three distinct processes, not one transaction. They each require the title holder to be in good standing, to have used the land in accordance with the title’s purpose, and to go through whatever administrative procedure applies at that stage. The 80-year ceiling is the cumulative ceiling, not a guarantee that any given holder will reach it without friction.

The critical market error: confusing KEK tenure with IKN tenure

A different regime governs land rights at IKN — the new national capital being built in East Kalimantan. PP No. 12/2023 (as amended by PP No. 29/2024) does grant certain rights at IKN in much longer upfront terms, which has generated widespread coverage of “80-year” or even longer grants given in a single transaction.

That is the IKN regime. It does not apply to KEK. The two frameworks are separate and were designed for different policy purposes. When a developer presentation or agency brief states that a KEK investment gives you an “80-year land right” without further qualification, they are using the cumulative ceiling number but implying a simplicity that the actual 30+20+30 cycle structure does not deliver. Read the fine print on any land proposal in a Bali SEZ. If it says “80 years” without referencing the cycle structure and the conditions for extension and renewal, ask the question directly.

There is no KEK-specific regulation we are aware of that grants a single upfront 80-year HGB or HP title in a KEK context. For hgb di kawasan ekonomi khusus, assume the standard PP 18/2021 cycles unless your legal counsel can point to a zone-specific rule that explicitly provides otherwise.

Inside-KEK Land Mechanics: The BUPP and Sub-HGB Structure

The unique feature of KEK land tenure is not the title duration — it is the layer structure. Understanding this is essential for anyone entering either Bali zone.

The BUPP holds the base right

Each KEK designates a Badan Usaha Pembangunan dan Pengelolaan (BUPP) — the zone developer-manager. At KEK Kura Kura Bali, the BUPP is PT Bali Turtle Island Development (BTID), appointed under PP No. 23/2023 (the 5 April 2023 designation regulation). At KEK Sanur, the zone sits on the former Grand Inna Bali Beach site and involves PT Hotel Indonesia Natour, part of the InJourney group — though the precise BUPP legal entity name should be confirmed against the current kek.go.id KEK Sanur profile before transacting.

The BUPP typically holds Hak Pengelolaan (HPL) over the zone land. HPL is not a title you can build on directly; it is a state-management right that the BUPP uses to administer the zone and to grant derived rights to tenants. Think of HPL as the foundational layer from which all tenant land rights flow.

Tenants get HGB di atas HPL (sub-HGB)

When a pelaku usaha (zone tenant / business actor) enters into a land agreement with the BUPP, they typically receive an HGB di atas HPL — an HGB title granted over the BUPP’s HPL parcel. This sub-HGB gives the tenant the right to build and operate on their allocated land during the title term.

The legal consequence matters: the sub-HGB is derived from and dependent on the underlying HPL. If the HPL is revoked, modified, or the BUPP is replaced, the derived HGB is affected. This is a standard feature of Indonesian zone land structure, not a Bali-specific peculiarity — but it is the reason why reviewing the BUPP’s HPL standing and the zone’s regulatory stability is part of proper legal due diligence, not an afterthought.

In practice, the land deal between a tenant and the BUPP goes through two stages: first a commercial agreement (LOI, term sheet, or land-allocation agreement), then the actual title issuance through BPN (Badan Pertanahan Nasional, the National Land Agency) via the PPAT (Pejabat Pembuat Akta Tanah — the land deed official who executes the title transfer instrument). Both stages require legal counsel. The PPAT must be licensed and operating in the jurisdiction where the land is located.

Long-form leases: the alternative to title

Not every zone occupancy takes the form of a title grant. Some tenants, particularly those taking smaller spaces or co-working facilities, will enter long-form leases from the BUPP rather than receiving an HGB. A lease does not require BPN registration the way a title does, but it also does not give the tenant the same security or bankability. For any investment of scale — a hotel, a hospital wing, a tech campus — title is the standard instrument. For incubator space or smaller office premises, a BUPP-managed lease structure may be offered first.

The office, land, and space guide for Bali’s KEZs covers the commercial parameters of what is currently available in each zone, including indicative lease structures where information is publicly available.

Foreign Routes: PT PMA and Individual Hak Pakai

Two legitimate routes exist for foreign capital to access land rights in foreign property ownership tourism sez indonesia context. They serve different purposes and carry different risk profiles.

Route 1: PT PMA holds HGB

The standard corporate route. A PT PMA — a limited-liability company incorporated in Indonesia with any level of foreign shareholding — can hold HGB. This is true inside and outside KEK. The PT PMA is the tenant of record in the zone, holds the HGB title, and builds or occupies the development.

For most commercial investments in KEK Kura Kura or KEK Sanur — a hotel, an office building, a clinic, a retail unit in the Grand Outlet, an education facility — this is the structure. The foreign investor holds shares in the PT PMA; the PT PMA holds the HGB. PT PMA minimum paid-up capital requirements apply (the Cipta Kerja reforms cut the floor to IDR 10 billion per 5-digit KBLI line, though standard practice for real-estate-connected ventures runs higher). This is the foundational reason why the company establishment and the land transaction are linked processes: the PT PMA must exist before the HGB can be registered to it.

Route 2: Individual Hak Pakai in a tourism SEZ

This route is available specifically in zones with a tourism designation — both KEK Kura Kura (tourism + creative industry) and KEK Sanur (health tourism) can in principle qualify. A foreign national holds Hak Pakai directly in their own name over a residential unit or designated parcel within the zone.

The conditions that apply nationally (under PP 18/2021 and the Ministry of ATR/BPN regulations) include:

• Minimum property value floors, currently set at levels varying by region — Bali’s floors are among the higher ones nationally. Verify the current floor directly with BPN Bali or qualified property counsel before advising on transactions.
• The property must be a unit that the developer has structured to permit Hak Pakai for foreign holders — not every parcel in a zone qualifies automatically. The BUPP controls which units are structured this way.
• Transactions must be denominated in Indonesian Rupiah.
• Hak Pakai for private individuals is time-limited and subject to renewal — it is not freehold. The tourist-SEZ context does not change this. Renewal requires the holder to still be eligible (e.g., still legally resident or meeting the qualifying conditions) at the time of renewal.

This route is the one sometimes marketed as a foreigner-accessible “property right” in tourism zones. It is legitimate, but it is not freehold and it is not unconditional. The dedicated HGB 80-tahun explainer covers the full duration structure and renewal conditions in detail.

Outside-KEK vs Inside-KEK: Tenure Stack Comparison

The table below maps how the same investor type experiences land tenure differently depending on whether they are in a standard Bali location versus inside one of the two Bali KEZs.

Renewal Risk: What Happens at Cycle End

Land right expiry is among the least-discussed risks in Indonesia real estate and zone investment. The 30-year initial cycle is long enough that it rarely feels urgent at transaction time — but for institutional investors, infrastructure projects, or any asset with a 20-to-30-year horizon, the renewal question is immediate.

Conditions for extension and renewal

PP 18/2021 sets out the conditions under which HGB can be extended and renewed. The title holder must demonstrate ongoing productive use of the land consistent with the purpose for which the title was granted. Abandoned land, land that has changed use in ways inconsistent with the title basis, or land where the holder has violated regulatory conditions can be refused extension or renewal. This is not theoretical — Indonesia has a body of administrative practice around title non-renewal, particularly for large parcels.

For a KEK tenant, the additional variable is the BUPP. Because the HGB is derived from the BUPP’s HPL, the extension cycle involves the BUPP’s continued operation and HPL standing as well. If the zone is performing and the BUPP is in good standing, extension is straightforward in practice. If the zone’s regulatory status changes — for example, under the revocation provisions of PP 40/2021 if the zone fails performance evaluations — the derived rights picture becomes more complex.

Does the KEK framework change the renewal calculus?

The non-fiscal incentives documentation at kek.go.id lists land rights up to 80 years as an incentive. This is the correct ceiling under PP 18/2021 — not a special KEK-specific extension of the standard national rule. Being inside a KEK does not automatically add years beyond the national ceiling, nor does it waive the conditions for renewal. The incentive, properly understood, is that the 80-year ceiling is consistently available and the zone’s land-management structure (via the BUPP’s HPL) provides a coherent framework for the full cycle — which may be easier to navigate than a comparable private-land transaction outside the zone with a fragmented ownership picture.

For long-horizon investors — those building a hospital, a school campus, or an integrated resort — the prudent approach is to negotiate extension and renewal conditions into the initial land agreement with the BUPP, not to assume that renewal at cycle end will be automatic. A well-drafted BUPP agreement will address this explicitly.

Foreign Property Ownership in Tourism SEZ: The Practical Picture

The phrase “foreign property ownership tourism sez indonesia” appears in kek.go.id’s incentives listing and in agency marketing materials for both Kura Kura and Sanur. It is real, but the market often presents it in ways that overstate the simplicity. Here is the honest version.

Both Bali KEZs carry a tourism designation — KEK Kura Kura as pariwisata + industri kreatif, KEK Sanur as kesehatan + pariwisata kesehatan. This is the necessary condition for the Hak Pakai individual-foreigner pathway to apply under the Cipta Kerja land framework. The designation does not make any parcel in the zone available to foreign buyers automatically.

What actually needs to happen:

• The BUPP must designate and structure specific parcels or units for foreign Hak Pakai. At BTID’s Kura Kura masterplan, the Azur Bali luxury residential marina district is the development most directly associated with foreign-accessible residential. Specific product structuring should be confirmed with BTID directly — the zone was still in active construction as of 2026.
• The property must meet the minimum price floor for foreign Hak Pakai in Bali. Floors are set by Ministerial regulation and are subject to revision; verify the current figure with BPN Bali or qualified property counsel at transaction time.
• The foreign buyer must be able to demonstrate funds in a legally compliant account in Indonesia; the transaction must be in IDR.
• The Hak Pakai title must be registered with BPN. This requires a PPAT. The PPAT cannot be waived.

None of these requirements are obstacles if the investor knows about them in advance and plans accordingly. They become problems when a buyer has been told the process is “simple” and then discovers at the notary stage that paperwork and IDR liquidity are more involved than expected.

The residence-permit angle also comes up in tourism-SEZ marketing — the claim that holding property in a KEK unlocks a special residence permit. As covered in the non-fiscal incentives page, this refers to the national Second Home Visa programme (Permenkumham 22/2022, 5-year or 10-year stay), which is not KEK-exclusive. Property in a KEK’s tourism zone may help qualify, but the underlying instrument is the same national visa. The KEK context does not create a separate or superior permit.

KEK Sanur: Land Under a Hospital Zone

KEK Sanur presents a specific land picture that differs from Kura Kura in one important respect: it is a 41.26-hectare zone on the site of a former state-owned hotel (the ex-Grand Inna Bali Beach), and the land relationship between the state hotel group (Hotel Indonesia Natour / InJourney) and the KEK structure means the BUPP’s HPL arrangement has a hospitality-sector history layered into it.

For a health-sector operator entering KEK Sanur — a clinic, a diagnostic centre, an allied-health provider, or a wellness business — the practical land transaction is with the KEK Sanur BUPP. Land within the zone is allocated according to the zone’s master plan, which assigns areas to hospital cluster, commercial health services, convention and hospitality, and the ethnomedicinal botanical garden. A tenant does not simply choose any parcel; they negotiate within the zone plan’s designated use areas.

The realized investment at KEK Sanur reached IDR 5.37 trillion with 5,444 people employed as of the most recent Kemenko Perekonomian data — a substantially more advanced stage than Kura Kura’s IDR 1.62 trillion. The Bali International Hospital (BIH), operated by IHC (Pertamina Bina Medika) with a Mayo Clinic collaboration announced at the December 2021 groundbreaking, held a soft opening in April 2025 per BIH’s own communications. More space is being developed around it. For a prospective health-sector tenant, the zone’s physical infrastructure is further along than Kura Kura, though the exact parcel availability and commercial terms are still negotiated case by case with the BUPP and Administrator KEK Sanur.

Due Diligence Checklist for Zone Land Transactions

Before executing any land agreement in KEK Kura Kura or KEK Sanur, the following items should be confirmed with the BUPP, BPN, and your legal counsel. This is not an exhaustive legal checklist — it is the starting set of questions that an informed investor should arrive with.

• HPL status of the BUPP: Is the BUPP’s Hak Pengelolaan over the parcel in question current and unencumbered? Any legal action or regulatory proceeding affecting the HPL affects your derived HGB.
• Title type being offered: Is this a sub-HGB (HGB di atas HPL), a direct HGB, or a long-form lease? Each has different security, bankability, and renewal characteristics.
• Initial term and conditions for extension: What is the initial term of the HGB? Under what conditions can it be extended? Are the extension conditions written into the land agreement with the BUPP, or are they left to future negotiation?
• BUPP’s estate regulation (peraturan kawasan) status: Has the BUPP obtained approval for a zone-wide estate regulation? If so, building permit requirements for individual tenants may be simplified. If not, standard PBG requirements apply.
• Zoning and permitted use: Does the parcel’s designated use in the zone master plan match your intended activity? A health-sector build in a retail-designated parcel, or a hotel in an education-cluster area, would require a zone plan amendment — a process with timing and approval uncertainty.
• Price floor compliance (for individual Hak Pakai): If the transaction involves a foreign individual taking Hak Pakai, does the unit price meet the current minimum floor set by ATR/BPN regulation for Bali?
• PPAT selection: The PPAT executing the title deed must be licensed in the relevant jurisdiction (Kota Denpasar for both zones). Confirm their credentials with the local PPAT board.

Land Costs: What Is and Is Not Published

A direct question that this site answers directly: land prices and lease rates inside KEK Kura Kura and KEK Sanur are not publicly published. Both BUPPs negotiate commercial terms on a case-by-case basis. BTID has not published land-sale or ground-rent rates for Kura Kura. The Sanur BUPP does not publish a rate card either.

What can be said, from the structure of the zones and the calibre of anchor tenants involved, is that zone land will price at a premium to the surrounding Sanur and Denpasar Selatan market. You are paying for the KEK fiscal package, the one-stop licensing, and the infrastructure the BUPP has built or will build. The actual negotiated rate will depend on parcel size, location within the zone plan, whether you are buying or leasing, the term, and what development commitments you are making.

Anyone quoting a per-square-metre rate for zone land in Kura Kura or Sanur without attribution to a signed deal or official BUPP publication is speculating. We have not published one, and you should treat unattributed figures from other sources accordingly. The office and land space page covers the commercial landscape of what is currently on the market in both zones, including whatever indicative ranges have been made publicly available.

Frequently Asked Questions

Can foreigners buy land in Indonesia’s Special Economic Zones?

Not in the freehold sense. No foreign national can hold Hak Milik (freehold) anywhere in Indonesia, including inside a KEK. The two legitimate routes are: (1) establish a PT PMA (Indonesian company with foreign shareholding) and have it hold HGB — this is the standard commercial route for business investors; or (2) as an individual, hold Hak Pakai over a designated residential unit within a tourism-zone KEK, subject to minimum price floors, IDR-denomination, and the BUPP having structured that unit for foreign Hak Pakai. Neither route is freehold. Both are time-limited and subject to renewal.

What is the maximum land right duration in a Bali SEZ?

Under PP No. 18/2021, HGB can run for up to 80 years cumulative — an initial grant of up to 30 years, then an extension of up to 20 years, then a renewal of up to 30 years. This is the national ceiling that applies in KEK Kura Kura Bali and KEK Sanur. Each cycle is a separate legal process with conditions attached. The 80-year total is not a single upfront grant. That structure (single longer-term grants) applies at IKN (the new capital in East Kalimantan) under a different regulation, PP 12/2023 as amended. Do not apply IKN rules to KEK.

Apa itu HGB di atas HPL dan mengapa ini penting di dalam KEK?

HGB di atas HPL adalah hak guna bangunan yang diberikan di atas Hak Pengelolaan milik BUPP (Badan Usaha Pembangunan dan Pengelolaan) zona. Di KEK Kura Kura Bali, BUPP-nya adalah BTID; di KEK Sanur, pihak yang mengelola lahan adalah entitas dalam kelompok Hotel Indonesia Natour/InJourney (konfirmasi nama entitas BUPP yang tepat di kek.go.id sebelum bertransaksi). Artinya, hak tanah yang dipegang tenant kawasan bersumber dari HPL BUPP, bukan langsung dari BPN. Konsekuensinya: jika status HPL BUPP berubah — misalnya karena revisi regulasi atau perubahan penetapan kawasan — hak turunan tenant juga terpengaruh. Ini bukan hambatan, tetapi alasan kuat untuk melakukan due diligence atas status HPL BUPP sebelum menandatangani perjanjian lahan apa pun.

Is the Second Home Visa linked to buying property in a Bali KEK?

Partially, but the relationship is often overstated. The Second Home Visa (Permenkumham 22/2022, available in 5-year or 10-year terms) is a national programme, not a KEK-specific instrument. Holding property in a tourism-zone KEK may be a qualifying condition or supporting document for a Second Home Visa application, but the visa itself is available nationally and the KEK context does not create a superior or separate residence permit. Developers and agencies sometimes present this as a unique zone benefit; it is not. Verify current eligibility conditions directly with the Directorate General of Immigration or a qualified immigration consultant.

What happens to my HGB inside a KEK if the zone loses its KEK status?

PP 40/2021 provides a framework for zone evaluation and, in cases of persistent underperformance, revocation of KEK status. If a zone were to have its status revoked, the fiscal incentives attached to the zone cease (tax holidays, customs facilities, etc.), but the underlying land rights — HGB or HP titles registered at BPN — are property rights and do not simply disappear with the zone designation. The more pressing practical concern would be the BUPP’s HPL: if the zone’s legal basis changes materially, the HPL and derived sub-HGB structure would need legal analysis at that point. This is a low-probability scenario for an operating zone with significant investment already committed, but it is part of the risk picture for long-horizon investors and worth addressing in any investment agreement’s force-majeure and regulatory-change provisions.