The Avillion Villa Cinta lease dispute is a Bali land story more than a money story. Avillion Bhd, a Malaysian resort company listed in Kuala Lumpur, told Bursa Malaysia on 30 October that a woman claiming to own the land under its Villa Cinta resort says the lease ran out in January. She wants about Rp9bn. Avillion rejects her claims. For foreign owners in Bali, the case is a reminder that a hotel on leased land is only as secure as the lease.
Key facts
| Item | Detail |
|---|---|
| Resort | Villa Cinta, Bali |
| Owner of the business | PT Avillion Indonesia, 99% owned (indirectly) by Avillion Bhd |
| Claimant | Shirley Winarso, who says she owns the land |
| Letter | Dated 13 October 2026 |
| Lease end claimed | 15 January 2026, not renewed |
| Claims | Rp4.89bn for rent, over-stay, repairs and costs |
| Loan discount sought | Rp4.11bn off her loan repayment |
| Total | Rp9bn (about RM2.3m) |
| Avillion’s reply | Disputed on 29 October; no proceedings yet |
| Book value | RM11.2m at 31 March 2026 |
What happened
PT Avillion Indonesia received a letter from Shirley Winarso’s lawyers dated 13 October, according to The Edge Malaysia. She says she owns the land on which Villa Cinta sits and that the subsidiary’s lease ended on 15 January 2026 without renewal. Her claims are for rent and other costs from the period since.
Her letter also ties the dispute to a loan between the two sides. She proposes settling through deductions from the outstanding loan principal: her claims of Rp4.89bn, plus a further Rp4.11bn discount on her repayment, as The Edge Malaysia reports it. The filing does not give the size of the loan.
Avillion replied on 29 October, disputing the claims and reserving its rights. It is taking legal advice. It says the figures are provisional, no case has been filed and it has made no provision. It expects legal costs but no material impact on the group.
Why it matters
Foreigners cannot hold freehold land in Indonesia. Most foreign-owned hotels in Bali sit on long leases or on rights held through local partners. When a lease ends, the owner of the building has little leverage unless the renewal terms were fixed in advance.
That is the core of this case. The money is modest. By our calculation, Rp9bn is about a fifth of Villa Cinta’s book value. The bigger question is whether Avillion can stay on the land, and on what rent.
The dispute also shows how tangled Bali deals can be. Here the landowner and the tenant are also linked by a loan, so each side’s claim depends on the other.
This is not the only recent land story on the island. Listed Indonesian hotel owner PNSE has just sold a large plot in Bali for cash; see our report on the Jayakarta owner’s Bali land sale.
Our read
Avillion’s statement that the impact is not material may be right on the numbers. But a hotel without a valid lease cannot be valued as a going concern. If the lease did lapse in January, every month of operation since is a month the landowner can charge for.
Our view: expect more disputes like this as Bali leases signed in the 1990s and 2000s reach their end. Leases are worth more to the landowner every year that land prices rise, so renewal on the old terms is not guaranteed.
What it means for you
1. Owners on leased land in Bali
Check your expiry date and your renewal clause now. Start renewal talks at least three to five years before the end.
2. Buyers of Bali hotels
Price the lease, not just the building. A short remaining term should cut the price sharply.
3. Lenders
Do not lend against a hotel whose lease ends before your loan does. Ask for the land title and the landowner’s consent.
4. Operators
Ask owners for the lease terms before you sign a management contract. Your contract is only as long as their lease.
FAQ
What is the Avillion Villa Cinta dispute?
A woman who says she owns the land under Villa Cinta, Avillion’s Bali resort, claims the lease expired on 15 January 2026 and wants about Rp9bn. Avillion disputes the claims.
How much is at stake?
The claims total Rp9bn, about RM2.3m. Villa Cinta had a book value of RM11.2m at 31 March 2026.
Has a court case started?
No. Avillion says no legal proceedings have been filed against it or its subsidiary.
Who is Avillion?
A Malaysian company listed on Bursa Malaysia that runs beach resorts, hotels and spas in Malaysia and Indonesia.
Why does this matter to other Bali owners?
Foreigners cannot hold freehold land in Indonesia, so many Bali hotels sit on leased land. When a lease ends, the building owner’s position depends on the renewal terms.
