Disclaimers: This article is for informational purposes only and does not constitute legal or financial advice. Indonesian property law is complex and individual circumstances vary—always consult with a specialist before making any final decision.
Key Takeaways
- Leasehold renewal costs in Bali are not fixed. The extension price usually follows the market land value at the time of renewal, so costs often rise as land prices increase.
- Land lease prices are calculated per are (100 m²) per year. In prime areas like Canggu or Seminyak, rates can reach IDR 35–50 million per are per year.
- Additional costs apply during renewal, including notary fees (1–2.5%), taxes such as VAT or income tax, and legal registration with BPN.
- Your original contract is crucial. Pre-negotiated renewal clauses or valuation formulas can reduce uncertainty and strengthen your negotiating position.
- “99-year leases” are usually structured in stages. Typically an initial 25–30 year lease followed by one or two renewals, meaning the lease value is paid multiple times over the full period.
Leasehold properties in Bali can look very attractive—offering lower upfront prices, strong rental potential, and the ability to control a property for decades. But naturally, many investors want to understand what happens when the lease eventually approaches renewal—especially when it comes to the cost.
Renewal is often seen as one of the disadvantages of leasehold ownership. However, once you understand how the system works and plan the right strategy from the beginning, it becomes much easier to manage.
In fact, many experienced investors treat renewals as a normal part of the investment cycle. Many of our clients have successfully renewed their leases, resold their villas, or generated strong rental income long before renewal even becomes an issue.
In this guide, we’ll break down how much it costs to renew a leasehold in Bali, so you can approach your investment with much greater clarity and confidence.
How Leasehold Pricing Works in Bali
Before understanding renewal costs, you need to understand how leasehold land is priced in the first place.
The price of land in Bali is typically expressed per "are" — a unit measuring 100 m², equivalent to 0.0247 acres. Leasehold land prices are normally quoted in Rupiah per are per year.
In the most expensive areas of Canggu, this can amount to IDR 40 million per are per year (around USD 2,600 at current exchange rates). Multiplied by the size of the land and the number of years, a 5-are plot for 25 years at that rate results in a price of IDR 5 billion, or approximately USD 330,000.
In less popular areas, lease prices can start from around IDR 3,000,000 per year per are (USD 192), rising to over IDR 30,000,000 per year per are (USD 1,925) in high-demand locations.
Read More: Cost of Property in Bali 2026: What You Need to Know
What Does Lease Renewal Actually Cost?
Here is the core truth of the matter: renewal costs will reflect the market price valid at the moment you start negotiating with the landowner. There is no way to predict exactly what this will be in advance.
Lease renewal costs are unpredictable and often rise over time, as they depend on market conditions and land values at the time of renewal. So, negotiating renewal terms early can reduce future risk.
That said, rough estimates do exist. When the lease term ends, you'll need to pay to extend it based on the land value at that time. This could be a substantial sum—potentially IDR 500 million to IDR 1 billion (USD 33,000 to USD 66,000) or more. Some estimate this cost could be around 30% of the villa's price at the time of extension.
For a premium villa in Canggu, Seminyak, or Uluwatu worth USD 500,000–USD 1 million at the time of renewal, that 30% figure translates to a renewal bill of USD 150,000–300,000 or more. This is frequently underestimated by investors who bought years earlier at much lower prices.
Practical Ballpark Figures by Location (2026)
These are rough estimates for what a lease renewal or extension might cost in different parts of Bali, based on current land rates, assuming a typical 5-are (500 m²) plot renewed for 25 years:
| Area | Approx. Rate (IDR/are/year) | Estimated Renewal Cost (5 are × 25 yrs) |
| Canggu / Seminyak (prime) | IDR 35–50 million (~USD 2,200–3,100) | USD 275,000–390,000 |
| Ubud / Jimbaran | IDR 10–25 million (~USD 625–1,560) | USD 78,000–195,000 |
| Emerging areas (Tabanan, Kedungu) | IDR 3–10 million (~USD 190–625) | USD 24,000–78,000 |
These are illustrative figures only. The actual cost will depend on the landowner, the terms of your original contract, and land price appreciation in your specific location since you originally signed.
What About a 99-Year Leasehold Extension?
How much do you need if you want to extend your 99-year leasehold? The system is typically the same with regular renewals.
Here’s the real deal: the idea of a 99-year leasehold in Bali is more marketing than reality. In practice, notaries in Bali typically don't certify agreements with very long periods like 80 or 100 years — it’s a rare case. They’re more likely to suggest dividing the lease into shorter terms.
Because of this, the extension cost isn’t paid just once at the beginning and then extended after 99 years. Instead, it usually follows a structure like this: an initial contract (for example, 30 years) → first renewal (30 years) → second renewal (30 years).
In other words, you’ll typically pay for the leasehold villa or land three times throughout the full period. The amount will depend on the property value at the time of renewal, what’s written in the contract, and the negotiation with the landowner.
Read More: How Much Does It Cost to Convert Leasehold to Freehold in Bali?
Additional Costs on Top of the Land Renewal Fee
When renewing a lease, the land payment itself is only part of the picture. You should also budget for:
- Notary and Legal Fees: Notary and legal fees typically range from 1% to 2.5% of the property value, covering the legal transfer of ownership and ensuring all requirements are properly fulfilled. For a lease renewal, a new notarial deed must be executed.
- Taxes: If you are leasing from a business entity, VAT applies at a rate of 11%. If the landowner receives rental income, a 10% income tax (PPh) is usually applied. Learn the details of Indonesian property taxes to better understand how they work
- Legal Registration: A lease extension must be formalised through a new notarial deed and, for best protection, registered with the National Land Agency (BPN).
The Critical Role of Your Original Contract
Your original lease contract is everything. Many investors overlook one crucial detail: some contracts include pre-negotiated extension rights or clauses that specify a method or fixed price for renewal.
If yours does, you're in a much stronger position. If it doesn't, you're negotiating essentially from scratch — and the landowner holds most of the leverage.
There are a few strategies used to protect lessees at renewal time:
- Write into the original contract that the extension fee will be determined by the average valuation of three independent, licensed real estate agencies at the time of renewal — removing arbitrary pricing by the landowner.
- Agree on a fixed price or a fixed calculation (like a certain percentage increase on the original price) for the extension from day one, which removes all future uncertainty. However this strategy is often harder-to-negotiate with property owners.
So, start off right. Knowing the right time to negotiate a renewal can help you secure a much better deal.
Read More: What Happens When Your Bali Villa Lease Expires?
Conclusion
There is no fixed price for renewing a leasehold in Bali. The extension cost is always negotiated, and the land value at the time of renewal usually determines the starting point of that negotiation.
But you don’t have to navigate the process alone. Bali Villa Realty can help make your leasehold transaction smoother. Our property specialists can guide you through the entire process—from finding the right property, negotiating with the landowner, to conducting proper legal checks.
Book your free consultation today and discover exclusive villa deals in Bali.
FAQ
In many cases, yes—especially if you plan to keep using the property or want to maintain its resale value. A longer remaining lease usually makes the property easier to sell and more attractive to buyers
If the lease expires and is not renewed, all legal rights to the property revert to the freeholder (the landowner).
Yes. In most cases, a freeholder is not legally required to grant a lease extension unless the right to renew is clearly stated in the original contract.
In Bali, freehold land titles can only be owned by Indonesian citizens. Foreigners typically hold property through a leasehold agreement, unless they establish a PT PMA structure.
