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Foreigners are allowed to own villas and land in Bali through a leasehold or a Right-to-Use (Hak Pakai) agreement, as owning land in Indonesia is restricted to Indonesian citizens and Indonesian legal entities.
A leasehold agreement grants the foreigner the right to use the land and villa for a certain period of time, typically up to 25 years, with an option to renew the leasehold agreement. A Right-to-Use agreement grants the foreigner the right to use the land and villa for up to 80 years, which is a longer term than a leasehold agreement.