We are experienced lawyers in Bali who are often asked by our clients who are foreign nationals to take care of their business interests in Bali, especially the property business. Our client is in the business of leasing a villa, previously he had to arrange a land lease agreement with the land owner who is usually a local Balinese. As for saving costs, our clients can make a land lease agreement letter underhand, the simple format of the letter is as follows (name and other identity is only an example):

The undersigned below:

Name : I PUTU AGUS PUTRA SUMARDANA

Place/Date of Birth : Denpasar/XXX

Occupation : Entrepreneur

Address : Br. Kaleran, Bungbungan Village, Kec. Banjarangkan-Klungkung, Bali

ID card number : XXX

Citizenship : Indonesian

In this case acting on behalf of himself, hereinafter referred to as the FIRST PARTY

Name : JUAN XERCOV

Place/Date of Birth : XXX

Occupation : Entrepreneur Domicile

Address : Jalan Nakula No. 100X, Badung-Bali

Passport Number : XXX

Citizenship : Russian

In this case acting on behalf of oneself hereinafter referred to as the SECOND PARTY --------

The parties explain in advance: -----------------------------------------------------------------

1. That the FIRST PARTY is the most fully entitled and the legal owner of a plot of land with ownership rights described in SHM No. 0107/Ungasan Village, located at Jalan Uluwatu 100X, and, with an area of ??1300 square meters, registered in the name of I PUTU AGUS PUTRA SUMARDANA. with boundaries:
   North : Land Property
   South : Street
   East : River
   West : Owned Land
   And hereinafter referred to as LAND.
2. That the FIRST PARTY will lease the above-mentioned LAND to the SECOND PARTY with an area of ??1000 M2 or part of the land owned by the First Party covering an area of ??1300 square meters, which is explained in a separate drawing signed by the First Party and the Second Party. Furthermore, the parties explained that this LAND lease was carried out and accepted with the terms and conditions set forth in 10 (ten) Articles, as follows:

ARTICLE 1 TERM

1. These leases are entered into and received for a period of 30 (thirty) years, starting from 9 June 2023 and ending on 9 June 2053.
2. After the said period ends, the SECOND PARTY is given the priority right to extend the lease period, the SECOND PARTY must notify the FIRST PARTY in writing, not later than June 9, 2052.

ARTICLE 2 RENTAL PRICE

1. The land rental price is set at Rp. 500,000,000.- (five hundred million rupiah) per year or Rp. 5,000,000,000.- (five billion rupiah) for the entire rental period and the money will be given by the SECOND PARTY to the FIRST PARTY simultaneously with the signing of this Agreement as a token of payment of the entire amount of the rental fee.
2. THE FIRST PARTY will provide a separate proof of receipt of money to the SECOND PARTY in the form of a sufficiently stamped receipt.
3. The FIRST PARTY during this lease period is absolutely not allowed to take additional rent from the SECOND PARTY by submitting any pretext or reason whatsoever.

ARTICLE 3 HANDS OF LAND

1. At the time of this agreement, the FIRST PARTY handed over the LAND to the SECOND PARTY.
2. THE SECOND PARTY accepts the surrender of the LAND according to the real conditions on the day of the handover.

ARTICLE 4 USE OF LAND

1. THE SECOND PARTY has the full right to use the LAND he rented under this agreement for settlements/dwellings/villas, on the responsibility of the SECOND PARTY and by taking into account and complying with all applicable legal regulations.
2. THE SECOND PARTY is obliged to maintain the LAND he leases as well as possible at the SECOND PARTY's own costs or maintenance costs.

ARTICLE 5 TRANSFER OF LEASE

During the validity period of this agreement, the SECOND PARTY is allowed to lease back part or all of the LAND it leases to a THIRD PARTY, without the need to obtain written permission from the FIRST PARTY.

ARTICLE 6 TAXES, FEES AND COLLECTIONS

All kinds of taxes, fees and money levies related to the above LAND are subject to the following provisions:

1. Since before until the time when this agreement was signed, it is still the obligation and responsibility of the FIRST PARTY.
2. After the signing of this agreement and so on, it becomes the obligation and responsibility of the SECOND PARTY.
3. Acts or actions that violate the law committed by the SECOND PARTY are fully the responsibility of the SECOND PARTY.

ARTICLE 7 OBLIGATIONS OF HEIRS

This agreement does not end because one of the parties dies, but will remain hereditary and must be obeyed by the heirs or recipients of the rights of each party.

ARTICLE 8 INFRINGEMENT OR CHEATING

1. If one of the two parties commits fraud or violates and does not comply with this agreement, then the following rules will apply: If the SECOND PARTY violates or does not comply with this agreement, the FIRST PARTY has the right to ask for this agreement to be cancelled.
2. If the FIRST PARTY violates or does not comply with this agreement, the FIRST PARTY is obliged to provide or pay compensation to the SECOND PARTY.

ARTICLE 9 SETTLEMENT OF DISPUTES

1. Matters that have not been included in this agreement will be discussed and resolved amicably through deliberation to reach a consensus by both parties.
2. If a dispute occurs and cannot be resolved amicably or by deliberation to reach a consensus, both parties agree to settle it legally and both parties have agreed to choose a common and permanent place of residence at the Registrar's Office of the XXX District Court.

ARTICLE 10 CLOSING

This land lease agreement was drawn up in 2 (two) copies and signed by both parties in Ungasan, Badung-Bali on June 9 2023 where each party is conscious and without coercion or pressure from any party, attended and signed by the Witnesses and known by the Kelian Dusun (Kadus)/Head of Neighborhood and Village Head.

FIRST PARTY                                                                                   SECOND PARTY

[JUAN XERCOV ]                                                                             [I PUTU AGUS PUTRA SUMARDANA]

Witness 1                                                                                          Witness 2

[                  ]                                                                                      [                        ]

Know:

Kelian Dusun (Kadus)/Head of Environment                                    Head of Ungasan Village

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