How is land and villa ownership formalized?

In Bali, there are two main forms of land ownership:

Leasehold — Long-term lease for 10−50 years:

Easy to arrange
Can be processed remotely
Lower cost for investors
Well-suited for tourism properties

Freehold — Also a lease, but for 70−80 years:

Significantly more complex and expensive to arrange
Requires a local company
More difficult to resell
Cannot be processed remotely
Not ideal for tourism properties as it lowers the ROI due to the higher cost

Land leasing in Bali is a straightforward scheme to preserve land for Indonesian citizens. Otherwise, the island would likely be quickly purchased by foreigners.

The land lease agreement is made between the buyer (individual or legal entity) and the landowner (or the developer in the case of a sub-lease in off-plan investments).

According to the land lease agreement, you are the owner of the property built on the leased land.