Bali Leasehold Agreement (Sewa-Menyewa / Hak Sewa)

This Leasehold Agreement (the “Agreement”) is made on , by and between:

1. Parties

The Lessor: , an Indonesian resident holding Lessor ID type…Indonesian KTP (Citizen ID)Passport no. , address , being the lawful holder of the underlying land right set out in clause 2; and

The Lessee: , a citizen of , passport no. , address .

The Lessor and the Lessee are each referred to as a “Party” and together as the “Parties”.

2. Leased Premises and Underlying Title

The Lessor agrees to lease, and the Lessee agrees to take on lease, the property being a Property type…VillaHouse (rumah)ApartmentLand (tanah)Other located at the address set out below (the “Premises”):

The Premises sit on land held by the Lessor under , covered by Indonesian land certificate (sertifikat) no. .

The Parties acknowledge that under the Basic Agrarian Law No. 5/1960 (Undang-Undang Pokok Agraria, “UUPA”), only Indonesian citizens may hold hak milik (freehold) title to land. This Agreement grants the Lessee a contractual lease (sewa-menyewa / hak sewa) only; it does not transfer, confer, or purport to confer any hak milik or other freehold interest in the Premises to the Lessee.

3. Term of Lease

The initial term of this lease is years, commencing on and ending on .

The Parties acknowledge that under Indonesian Civil Code (KUHPerdata) arts. 1549 et seq. (sewa-menyewa) a lease of land is a valid contractual right; a foreign national may also hold a hak pakai (right to use) under Government Regulation No. 18/2021, art. 37, for an initial term of 30 years with a 20-year extension and a 30-year renewal (80 years in total) where constituted by notarial deed and registered. This private sewa lease does not by itself constitute or register such a hak pakai.

4. Lease Price and Payment

The Lessee shall pay the Lessor a total lease price for the full term of Currency…Indonesian Rupiah (IDR)US Dollar (USD)Australian Dollar (AUD)Euro (EUR)Singapore Dollar (SGD)British Pound (GBP), payable according to the following schedule:

Payment shall be made by bank transfer or other written method agreed by the Parties. The Lessor acknowledges that receipt of the full lease price is a condition of the Lessee’s peaceful enjoyment of the Premises for the term.

5. Possession and Permitted Use

The Lessor shall deliver possession of the Premises to the Lessee on , free of occupants and encumbrances other than those disclosed in writing. The Lessee shall use the Premises for the following permitted use: Permitted use…Residential onlyCommercial / holiday rentalMixed residential and commercial.

The Lessee shall not use the Premises for any unlawful purpose under Indonesian law, nor for any activity that would impair the Lessor’s title to the underlying land.

6. Maintenance, Taxes, and Utilities

The Lessee shall maintain the Premises in good condition, ordinary wear and tear excepted, and shall bear the cost of utilities (electricity, water, internet, waste), the annual land and building tax (PBB) on the Premises, and any community or villa-management fees during the term. The Lessor remains responsible for structural defects existing at handover and for keeping the underlying land title (sertifikat) free of encumbrances that would displace the Lessee.

7. Alterations and Construction

Alterations or new construction on the Premises: YesNo. Where the Lessor’s written consent is given, any building or improvement built by the Lessee on the land shall, on expiry or termination of this lease, become the property of the Lessor without compensation, unless the Parties agree in writing that the Lessee may remove the improvement and restore the Premises to their prior condition.

8. Subletting and Assignment

Subletting or assignment to a third party: YesNo. The Lessee shall not sublet, assign, or otherwise transfer the lease without the Lessor’s prior written consent; any permitted transferee must assume in writing all of the Lessee’s obligations under this Agreement.

9. Risk, Insurance and Liability

The Premises are at the Lessee’s risk from handover until return. The Lessee shall maintain adequate property and liability insurance for the Premises and any occupants during the term. The Lessor is not liable to the Lessee or to occupants for personal injury or property loss on the Premises except to the extent caused by the Lessor’s wilful default or gross negligence.

10. Destruction and Eminent Domain

If the Premises are wholly destroyed by a cause not attributable to the Lessee, this lease terminates and the Lessor shall refund the proportion of the lease price corresponding to the unexpired term, less any sum owed by the Lessee. If the land is acquired or taken by an Indonesian government authority (e.g. for public works or land reform), any compensation payable for the unexpired term of the lease shall be apportioned between the Parties according to the remaining years of the term.

11. Default and Termination

Either Party may terminate this lease on a material breach by the other, by giving not less than days’ written notice specifying the breach and requiring remedy, provided the breach is not cured within that period. The Lessor may terminate immediately on non-payment of the lease price when due, or on any breach that risks the Lessor’s hak milik or other underlying title to the land.

12. Surrender of the Premises

On expiry or termination of this lease, the Lessee shall return the Premises to the Lessor in as good condition as received, ordinary wear and tear excepted, free of occupants and of any lien or encumbrance created by the Lessee. The Lessor may deduct from any refundable sum the cost of restoring the Premises to that condition.

13. No Ownership Acquired; Nominee Bar

The Lessee acquires only a contractual leasehold right under the Civil Code (sewa-menyewa). Nothing in this Agreement constitutes the Lessee as the owner of the land, nor as a nominee, proxy, or straw-man owner of the underlying hak milik; any nominee or similar arrangement purporting to vest hak milik in the Lessee would be unenforceable under the UUPA.

14. Dispute Resolution

The Parties shall first attempt in good faith to settle any dispute arising out of this Agreement by negotiation. If a dispute is not resolved within thirty (30) days, it shall be finally resolved by arbitration in Bali under the Indonesian Arbitration Law (Law No. 30 of 1999), in the Indonesian language, by a single arbitrator appointed under the rules of the Indonesian National Board of Arbitration (BANI).

15. Governing Law

This Agreement is governed by the laws of the Republic of Indonesia, including the Indonesian Civil Code (KUHPerdata), in particular arts. 1549 et seq. on sewa-menyewa, the Basic Agrarian Law No. 5/1960 (UUPA), and Government Regulation No. 18/2021.

16. Language

This Agreement is executed in the English language. The Parties may execute an Indonesian-language counterpart for registration or notarial purposes; in the event of any inconsistency between the two versions, the Indonesian-language version shall prevail for purposes of Indonesian land law.

IN WITNESS WHEREOF, the Parties, having read and understood every clause, sign this Agreement before the witnesses below.

Signatures and Witnesses

Lessor: ______________________________  

Lessee: ______________________________  

Witness 1: ______________________________  
KTP / passport no.:

Witness 2: ______________________________  
KTP / passport no.: