🏝️ 1. Choose the Right Ownership Structure
Foreigners can’t directly own freehold land (Hak Milik) — but you still have three safe legal options:
| Option | Ownership Type | Best For | Key Notes |
|---|---|---|---|
| PT PMA (Foreign-Owned Company) | Hak Guna Bangunan (Right to Build) | Investors, villa rentals | 100% legal for foreign buyers, can lease or build villas, needs annual tax filing |
| Leasehold (Hak Sewa) | Long-term lease (25–30 years, extendable) | Personal villas, medium investment | Safest for private use, no company needed |
| Nominee (Local name) | Indonesian holds title | ⚠️ Not recommended | Risky & illegal if not structured properly; foreigner has no legal control |
💡 Tip: Use a notary (PPAT) who specializes in foreign ownership and PMA structuring — not a “friend’s agent.”
🗺️ 2. Check Land Zoning (RDTR Map) Before Anything
Never pay a deposit before confirming zoning.
You can only build villas in:
- Residential (Perumahan / Kuning)
- Tourism (Pariwisata / Pink)
Avoid Green Zones (Pertanian) or Protected Areas (Hijau) — construction is illegal there.
👉 Check zoning on https://rdtr.atrbpn.go.id or get an official Keterangan Zonasi (SKTR) from Dinas PUPR.
📜 3. Verify Land Ownership & Certificates
Always verify the land’s legal status at BPN (Badan Pertanahan Nasional).
Ask for:
- Sertifikat Hak Milik (SHM) or HGB — original copy
- Land survey map (Peta Bidang)
- Proof of tax payments (PBB)
- No disputes letter (Surat Keterangan Tidak Sengketa)
If it’s a lease, ensure the owner name matches the certificate.
💡 Bring a notary or legal consultant to cross-check the title at BPN — it takes just a few days.
📍 4. Inspect Location and Access Rights (Jalan)
In Bali, access road ownership is often overlooked.
Make sure your plot has:
- Legal access road (Hak Jalan / Jalan Umum)
- Registered right-of-way (Hak Servituut) if through private land
Otherwise, you might have no legal access for vehicles — a surprisingly common problem!
💧 5. Confirm Infrastructure & Utilities
Good real estate depends on good infrastructure:
- Check electricity availability (PLN) and water (PDAM or well permit)
- Confirm internet coverage (especially in rural areas)
- Ask about flooding, drainage, or noise issues
- Verify waste and septic system approval
💡 Pro Tip: Visit during rainy season (Dec–Feb) — you’ll see real drainage performance.
📈 6. Buy in the Right Area for Your Goal
Different areas in Bali attract different types of returns and lifestyles:
| Area | Type | Best For | Notes |
|---|---|---|---|
| Canggu / Berawa / Pererenan | High-demand | Short-term rentals | Busy, great ROI, but pricey |
| Uluwatu / Ungasan | Developing | Mid-term investment | Growing fast, cheaper land |
| Ubud | Cultural / wellness | Retreats, long stays | Peaceful, steady demand |
| Sanur / Kerobokan | Family & retirees | Long-term rentals | Good infrastructure |
| Tabanan / North Bali | Emerging | Land banking | Low entry cost, slower ROI |
Think 5–10 years ahead — not just today’s trends.
💰 7. Work With Trusted Professionals
Bali’s property scene has many unlicensed agents.
To protect yourself:
- Use a licensed notary (PPAT) for all transactions
- Have a legal due diligence report before signing
- For foreigners, hire a corporate lawyer familiar with BKPM (Investment Board) for PT PMA setup
- Use a reputable property agency (e.g., Ray White, Paradise Property, Bali Home Immo, Seven Stones Indonesia)
✅ Always have contracts in dual language (Bahasa + English), and notarized.
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