How to Check Zoning & Permits Before Buying Property in Bali
Hi, I’m Jason, a Business Journalist at Bukit Vista, and I’m here to walk you through one of the most important—and misunderstood—parts of investing in Bali real estate: zoning and permits. Using insights shared on our Bali Business Review channel, we’ll clarify what “due diligence” really means in the Balinese property market and how you can protect yourself before making that life-changing investment.
Why Zoning Matters in Bali
When it comes to property in Bali, not all land is created equal. Zoning regulations divided by the Indonesian government outline exactly what can (and can’t) be built on a given plot. These zones include residential, tourism, agricultural, and green zones—and getting this wrong could mean losing your investment altogether.
- Residential Zones: Suitable for villas and long-term dwellings.
- Tourism Zones: Permit use for holiday rentals, hotels, and businesses.
- Agricultural/Green Zones: Building may be restricted or outright illegal.
If you’re dreaming of buying a villa and renting it on Airbnb, but the land is agricultural, you could be facing major legal trouble—no matter how beautiful the property looks online.
Understanding “IMB” and “PBG” Permits
In Indonesia, the building permit process starts with a license called the IMB (Izin Mendirikan Bangunan), but this has since been replaced by the newer PBG (Persetujuan Bangunan Gedung). Understanding what permit your prospective property has—or lacks—is crucial.
- IMB (Old system): Established building permit that defines structure use (residential, commercial, etc.).
- PBG (New system): Enacted under updated laws to streamline and modernize the previous process.
Many existing properties still carry IMB documentation, but you’ll want a lawyer to confirm if these are still valid or need to be upgraded to a PBG under current regulations.
Steps for Performing Due Diligence
So what does due diligence—Bali style—actually look like? Jing emphasizes a six-step process that will save you from future headaches:
- Engage a Reputable Notary: Ideally, someone familiar with local rules in the specific regency where you’re looking to buy.
- Check Zoning Documentation (RTRW): Review government-issued maps and documents to confirm allowable use for the land.
- Verify Ownership & Hak Guna Bangunan (HGB): Ensure seller has the right to sell and that there’s no dispute over title.
- Confirm Building Permits: Request and review the IMB or PBG tied to the property—it should match what’s being advertised.
- Validate Usage License (SLO): On rented residences or commercial operations, this license ensures utility and building compliance.
- Consult Local Authorities: Especially for border zone regions, get a verbal or written understanding from regency officials.
Without these steps, buyers can end up with their dreams halted by building inspectors or neighbors ready to file a complaint.
Red Flags to Watch Out For
Jing also shares common signs of shady situations:
- Lack of Documentation: Sellers who don’t provide zoning documents or permits.
- “Everyone Does It” Mentality: Just because nearby villas violate zoning doesn’t make it legal or safe in the long run.
- Pushing Speed Over Clarity: If you’re being rushed to close, slow down and revisit the details.
The Cost of Avoiding Due Diligence
Skipping due diligence to “save time” can cost you hundreds of thousands later. From having your property demolished by authorities to facing court battles, the Bali Business Review reminds us: due diligence isn’t a cost—it’s an investment in not losing everything.
Final Thoughts
Zoning and building permits are the “fine print” of property investment in Bali, but they hold all the weight. Getting this part right protects you, your tenants, and your peace of mind. If you’re serious about buying land here, Jing’s breakdown in the video is a must-watch.
For a deeper dive into how to check zoning and permit documentation properly, watch the full episode of Bali Business Review below. It goes beyond the basics, offering visual walk-throughs and expert commentary that every investor needs to hear.
Until next time, invest wisely and stay informed.
Jason, Business Journalist at Bukit Vista
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