Land Checking in Bali

Buying Land, Homes, or Commercial Property on Bali is Not Allowed – This is a Fact.

As mentioned in our previous article, there are specific rules and contract types in Indonesia for foreigners looking to invest in construction, rental businesses, or development. You can read more about this here: Land Ownership in Bali - https://bali-legal.com/en/land-on-bali-en.

In practice, there are THREE main types of temporary ownership and THREE main types of contracts available:

To make it easier to understand the legal nuances and differences between these terms, keep this in mind:

The terms and some conditions of both contracts can be almost the same, but the key difference is whether your details are officially recorded or not.

Here's What a New Owner's Entry in the Land Certificate Looks Like.

Key Points to Consider Before Purchasing or Entering into a Long-Term Lease for Land or Property

Should It Be Mentioned That Signing a Purchase or Lease Agreement for Such a Plot Means Simply Giving Your Money to Scammers?

To avoid falling into this trap, here's a step-by-step guide to ensure the land you choose is legitimate:

1 - VERIFY THE AUTHENTICITY OF THE LAND CERTIFICATE, even if you don’t plan to notarize the deal or are just browsing a few properties before making a decision.

This verification can be done officially (through the local land office in Bali) or unofficially..

Both procedures can be extremely challenging for foreigners to handle on their own—something scammers rely on—because it requires good knowledge of the Indonesian language, knowing where to go and whom to approach, and dealing with local bureaucracy, including standing in long queues and accounting for the 186 public holidays throughout the year.

If you’re up for the challenge of finding your land independently, here’s a helpful site in Indonesian (no English translation, like most local sites) - https://www.atrbpn.go.id.

During the land verification process (whether official or unofficial), the following aspects are usually checked:

Here’s an example of what such an official letter from the Badung district land office looks like.

Every District Has Its Own Rules, and Official Letters Will Vary.

2 - CHECK THE ZONING OF THE LAND..

For a detailed explanation of what land zoning is and why it matters, you can read this article: https://bali-legal.com/en/land-on-bali-en.

Key Risks for Investors if Land Is in a Green Zone (Protected Area)::

These risks are not acceptable for serious investors unless your project returns all costs within a year and you're willing to take that gamble.

Land Zoning Check Methods: Official and unofficial checks are available, but I almost always recommend official checks for developers and landowners. The result is a LETTER THAT EXPLAINS THE ZONE WHERE YOUR LAND IS LOCATED AND WHAT ACTIVITIES ARE ALLOWED OR PROHIBITED.

Official zoning documents differ by region, but here’s an example of what such a letter might look like:

This Plot Meets All Investor Requirements and Can Be Used for Residential and Commercial Development.

Why Is It So Important to Do an Official Check? Official zoning checks are crucial because there are often cases where the zoning status of the land has changed—for example, from a green zone (no construction allowed) to a yellow zone (construction permitted). However, such updates are only available in official land records.

If you check the land unofficially, you might only see outdated information, like the plot still being in a green zone, and miss out on a valuable investment opportunity. Considering the current policy of Bali’s governor to shift agricultural land to less valuable areas for developers, missing this information is not just a possibility—it’s a real lost opportunity.

Tip for Investors:
Investors rarely focus on just one plot; they often consider several options. In this case, you can conduct unofficial checks on multiple plots and only get an official report on the one that suits you best.

 

Required Documents for Land Verification

For those planning to verify land in Bali, here’s a concise list of documents to request from the landowner. This list can be expanded for a more detailed inspection, which includes not just land verification but also a thorough review of all documentation and management of the transaction by our specialists:

For Basic Land Verification:

Additional Documents for Comprehensive Verification (e.g., Hak Guna Bangunan Agreement):

For Investments via an Intermediary Company, Request:

If you want to conduct the entire verification process, gather information, and prepare documentation for land acquisition at a reasonable price with an English-speaking manager, just contact us via TELEGRAM or WHATSAPP.