Reference
Bali Property Glossary
Last updated
Sales material for Bali and Indonesian property leans heavily on terms most Western buyers and sellers have never encountered. Understanding them is the first step in understanding what you're actually being offered.
- Adat / Girik Land
- Land held under customary (adat) tenure, often evidenced only by an informal girik document rather than a formal registered certificate. Ownership and boundaries can be genuinely disputed, and building on it carries significantly higher legal risk than land with clean, registered title.
- Escrow
- A neutral third-party arrangement that holds a buyer's funds and releases them to the seller or developer only once agreed construction milestones or conditions are met — rather than paying the full amount upfront directly to the developer's account.
- Hak Guna Bangunan (HGB)
- Right to Build — a land right, generally held by an Indonesian company (including a foreign-owned PT PMA), allowing construction and use of land for a fixed, renewable term. Not the same as freehold ownership. See my leasehold vs. freehold guide.
- Hak Milik (Freehold)
- Full freehold land title under Indonesian law. Reserved for Indonesian citizens — foreign individuals and foreign-owned companies cannot hold it directly, regardless of what a sales agent implies.
- Hak Pakai (Right to Use)
- A time-limited land right, commonly issued for around 30 years with possible extensions, that foreign individuals meeting certain residency requirements can hold directly. Stronger legal footing than an informal lease, but still not freehold.
- Hak Sewa (Leasehold)
- A long-term lease agreement with an Indonesian landowner, commonly 25-30 years, sometimes marketed with an "extension option." That extension is not automatic — it depends on renegotiating with whoever owns the land at the time, on whatever terms they're willing to offer.
- Notaris / PPAT
- An Indonesian notary public and land deed official (Pejabat Pembuat Akta Tanah) authorised to certify land and property transactions. For any due diligence to mean anything, this should be a notaris independent of the developer or agent — not one they supply.
- Off-the-Plan
- A property sold before or during construction, based on renders and projected completion dates rather than a finished, inspectable building. See my red flags checklist for what to check before buying off-the-plan.
- OSS (Online Single Submission)
- Indonesia's online business licensing and company registration system, useful for independently verifying whether a company — such as a PT PMA developer entity — is genuinely registered and matches what's stated in your contract.
- PBG (Persetujuan Bangunan Gedung)
- Building approval, formerly known as IMB (Izin Mendirikan Bangunan). Needs to match the exact plot and structure being sold to you — not a general company-wide permit or one issued for a different project.
- PT PMA
- Penanaman Modal Asing — a foreign-owned (or foreign-invested) limited liability company, the vehicle commonly used for foreign nationals to hold HGB land rights and operate a business in Indonesia. Comes with ongoing compliance obligations frequently understated by developers selling it as simple "ownership."
- Power of Attorney (Surat Kuasa)
- A legal document authorising another party to act on your behalf in a transaction, commonly used by overseas buyers or sellers. A common vector for fraud if granted too broadly or to the wrong party — see my guide for sellers for how to use one safely.
This page is general information only, not legal advice. Terminology and regulations can change and vary by region — always confirm current requirements with an independent, qualified local lawyer or notaris (PPAT).