Ownership Dispute Erupts Over Bali's Villa Cinta Between Malaysian Firm and Indonesian Titleholder
A dispute has surfaced over Villa Cinta, a luxury villa in Bali operated by a subsidiary of Malaysia-listed Avillion Bhd, after the land's registered titleholder—a former local company director—claimed ownership and alleged the lease had expired. No legal proceedings have been filed yet, but the case highlights legal risks facing foreign investors in Indonesian property.
Malaysia-listed Avillion Bhd disclosed to Bursa Malaysia on Nov 5 that its subsidiary Avillion Hotel Group (AHG) maintains it holds full beneficial interests and control rights over Villa Cinta, a luxury villa in Bali, Indonesia. The statement responds to a claim from the property's registered titleholder, Shirley Winarso, who has disputed PTAI's occupation and use of the property.
According to the filing, AHG advanced 29 billion rupiah (about RM6.49 million) to Winarso—then a director of local subsidiary PT Avillion Indonesia (PTAI)—under a 2013 loan agreement specifically to acquire Villa Cinta. Avillion says Winarso has no unilateral right to repay this loan under the agreement's terms.
PTAI has operated the villa's hotel business since 2013, while Winarso served as its director from 2012 to 2026. On Oct 13, Winarso's solicitors sent a letter alleging PTAI's lease on the property expired on Jan 15, 2026 without renewal. PTAI responded on Oct 29, disputing the claims and reserving its rights.
Winarso has proposed deducting a total of 9 billion rupiah from the outstanding loan, comprising roughly 4.89 billion rupiah in provisional claims for unpaid rent and related costs, plus a further 4.11 billion rupiah discount on loan repayment.
Avillion says a legal opinion obtained from its Indonesian legal adviser on May 19 concluded that AHG is the beneficial owner of Villa Cinta. The villa had a net book value of about RM11.2 million as of March 31. As of the latest disclosure, no legal proceedings have been filed and no financial provision has been made, though the company expects to incur legal and professional fees going forward.
Things to Consider
Foreign investors considering villa or hotel investments and long-term leases in Bali should note that, as in this case, ownership structures involving an Indonesian-registered titleholder and a foreign company holding beneficial control can become legally contested. Before signing any agreement, engage a qualified local lawyer to verify land title status, lease expiration dates, and the legal validity of nominee arrangements, and ensure loan agreements and ownership transfer terms are clearly documented. There is currently no reported impact on guests with existing bookings at Villa Cinta, but travelers planning long stays or events there should confirm current operational status directly with the property before finalizing plans.
Source: EdgeProp.my