Bali Leasehold Extension: How 30 + 30 Terms Really Work

In brief: a Bali leasehold advertised as "30 + 30" gives you an initial lease term of 30 years and a contractual option to extend for 30 more. The first number is a right you hold from the day you sign. The second number is only as strong as the clause behind it. Indonesian law does not extend a lease on its own and sets no statutory renewal, so an extension is enforceable when it is written into the notarised master lease, the basis for the extension fee is fixed now, the notice window is clear, the right travels with the property on resale, and the lease binds heirs on both sides.

What does "32 + 30" actually mean in a Bali leasehold?

A leasehold in Bali is a contractual right to use someone else's land. The Basic Agrarian Law (Law No. 5 of 1960), Articles 44 and 45, defines this right of lease for building (hak sewa untuk bangunan) as the right to use land owned by another person for a building, in exchange for rent paid either once or at intervals, and lists foreigners resident in Indonesia and Indonesian legal entities among those who may hold it. The law fixes neither a maximum term nor an automatic renewal. The term and any extension are whatever the parties write into the contract.

So in a figure such as "32 + 30", the 32 is the initial term, paid for at purchase. The 30 is an option: a promise that you may continue for a second period on terms described in the agreement. Two leases with identical headline numbers can carry very different protection, because the protection lives in the wording of the extension clause, not in the number.

For the wider question of which structure to choose in the first place, see our hubs on leasehold vs freehold in Bali and on leasehold, Hak Pakai and PT PMA. This article stays on one question: what makes the second number hold.

What makes a Bali leasehold extension enforceable?

Five things decide it. We look at each one the way a lawyer reading the master lease would.

1. It is written into the notarised master lease

An extension promised in a presentation, a reservation form or a separate letter is weaker than one written into the lease deed itself. Under Law No. 2 of 2014, which amends Law No. 30 of 2004 on the Office of Notary, a notary is the public official authorised to make authentic deeds, to guarantee the date they were made and to keep the original (the minuta) on file. A deed that fails the formal steps the law prescribes, such as being read to the parties before witnesses, keeps only the evidential force of a private agreement. In practice, this means you should ask for the notarial deed number, the name of the notary and a certified copy, and check that the extension clause is in that document.

Language matters too. Article 31 of Law No. 24 of 2009 requires agreements involving an Indonesian individual or private institution to be made in Indonesian, and an agreement with a foreign party to be written also in that party's language or in English. A bilingual deed, with a clause stating which version prevails, lets you read exactly what you are signing.

2. The basis for the extension fee is fixed now

This is the line that decides whether the extension is a right or a negotiation. If the agreement says the fee will be "mutually agreed" or set at "market value at the time", you will negotiate in 30 years with a building you cannot move, standing on land you do not own. A Bali leasehold extension guide by Kedungu Real Estate ranks the options from strongest to weakest: an amount fixed in the contract at the top, then a single valuation by a licensed independent appraiser (KJPP) appointed jointly, then a fixed formula, with "market" terms, "mutually agreed" and "subject to landlord approval" at the bottom.

A public reference value is another objective basis. NJOP (Nilai Jual Objek Pajak) is the land and building value used for property tax. Law No. 1 of 2022 defines it as the average value from arm's-length sales, with comparison or replacement value used where there are none, and provides that the head of the region sets it, normally every three years. Neither party controls it, which makes it a defensible basis for a fee agreed decades in advance.

One more cost to plan for: lease payments to a landowner are subject to a final income tax on the gross lease value under Government Regulation No. 34 of 2017. The tax is on the landowner's income (a tenant that is a company or another designated withholder must withhold it), but agreements sometimes shift the cost to the tenant, so check who carries it on the extension payment.

3. The timing and notice are spelled out

An option needs a window: when you may exercise it, how (in writing, to which address) and what happens once you do. Without one, the default rules are not in your favour. Under Article 1573 of the Indonesian Civil Code, if a tenant stays on after a written lease has ended and the owner allows it, a new lease arises that follows the rules for oral leases, not the terms of the original deed. Article 1574 adds that a guarantee given for the original lease does not cover obligations arising from that kind of continuation. A clear exercise window, with written notice and a fixed point at which the extension takes effect, keeps you inside the deed.

4. The extension right passes to a buyer on resale

Most investors will sell before the first term ends, and a buyer pays for the years left plus the strength of the extension. Check two things. First, that the agreement allows you to assign the lease without the landowner's fresh consent, or sets out in advance how consent is given. Second, that the extension option is assigned with it, so the buyer inherits the same "+ 30" you bought.

The landowner side is protected by statute: under Article 1576 of the Indonesian Civil Code, selling the leased property does not end a lease made earlier, unless the right to do so was reserved when the lease was signed. Read the deed for any such reservation.

5. Succession: the lease and the option outlive both parties

Article 1575 of the same Code states that a lease does not end on the death of either the lessor or the lessee. That is the statutory starting point, and it is a good one. Two drafting points complete it. The extension option should be expressed as binding on the landowner's heirs, successors and assigns, because on Bali land is often held by a family and the person who signed may not be the person who must honour the option. On your side, the agreement should allow the lease to pass to your heirs or a named beneficiary, and your own estate planning should name who receives it. How a foreign heir is treated also depends on their own law and residence, so take advice in both countries.

Bali leasehold extension clauses: weak vs strong

The table sets out what to look for, clause by clause. If a draft agreement sits in the weak column on any line, that is the line to renegotiate before signing.

How HQC structures the extension in its projects

Our legal department agrees the extension procedure with the landowner in advance, at the project preparation stage. Every HQC leasehold project provides for a guaranteed lease extension of at least 30 years on pre-agreed terms, and those obligations are recorded in notarised Master Lease Agreements that are openly available. You sign with a registered Indonesian company (PT) holding the lease, never a nominee arrangement.

The published tenures are:

• Satori: Leasehold 32 + 30, with the extension guaranteed at the tax (cadastral) value of the land.
• Aravita: Leasehold 31 + 30.
• Ardhana: Leasehold 30 + 30.
• Bloom: Leasehold 39 + 30.
• Black Rock: Leasehold 32 + 30, with a contracted priority extension; on a completed resale, the land right passes to the buyer directly from the landowner at the deal.

Satori ties the extension fee to a public value rather than a figure negotiated at expiry; Black Rock settles the resale point at the deal. For any project, our team will walk you through the extension clauses in its master lease.

Frequently asked questions

How long is leasehold in Bali?

There is no statutory term. Leases are commonly offered for an initial 25 to 30 years with a contractual extension; HQC projects run from 30 to 39 years plus an extension of at least 30 years. What counts is the term and the extension written into your agreement.

Is a Bali leasehold extension automatic?

No. Indonesian law does not extend a lease by itself. The extension exists only if the agreement grants it, and it is enforceable on the terms the agreement sets: the fee basis, the notice window and the conditions, if any.

Can the landowner refuse to extend?

Not if the option is written as a guaranteed, unconditional right in the notarised lease and you exercise it as the contract requires. If the clause says the extension is "subject to approval" or "on terms to be agreed", the landowner keeps a practical veto.

What happens to my lease if the landowner dies or sells the land?

Under Articles 1575 and 1576 of the Indonesian Civil Code, a lease does not end on the death of either party, and a sale of the land does not end an existing lease unless the right to end it was reserved in the lease. A well-drafted agreement also states that the extension option binds the landowner's heirs and successors.

Can I sell a leasehold with the extension included?

Yes, if the agreement allows assignment and the extension option is assigned together with the remaining term.

What does an extension "at cadastral value" mean?

It means the extension fee is tied to the value of the land for property tax purposes, which in Indonesia is the NJOP set by the regional government, rather than to a figure negotiated when the first term ends. Satori's extension is guaranteed at the tax (cadastral) value of the land; the exact mechanism is set out in its master lease.

If you are comparing leasehold offers, ask each developer for the master lease and read the extension clause first. Our FAQ covers how extension works across HQC projects, and the Satori project page sets out its tenure. Talk to the HQC team to see the provisions that govern the extension for the project you are considering.