Each guide answers one question, gives the short answer first, and cites the regulation or source behind every rule, with the date it was read. Guides on law, tax and visas are information, not advice. See also the step-by-step process for Bali and the glossary of local terms.
14 guides
Read 47 sources on 14 sites
2 guides
Anyone with an interest may ask the land office (Kantor Pertanahan) for the registered physical and legal data of a plot, and a certificate is strong evidence only so far as it matches the land book and survey letter held there.
A Hak Pakai over freehold land is granted by PPAT deed and registered at the land office for up to 30 years, renewable by a new deed, while a lease for building is a contract with the owner whose length UUPA does not fix, which can be recorded on the land register.
3 guides
No: under the Basic Agrarian Law (UUPA, Law 5 of 1960) only Indonesian citizens can hold freehold land (Hak Milik), and any transfer of Hak Milik to a foreigner is void.
A PT PMA is a limited company under Indonesian law, domiciled in Indonesia, with foreign shareholding; it is the form foreign investment must take and it registers through the OSS system, which issues its business identification number (NIB).
A PPAT is an official appointed for a set working area who makes the deeds for sales, gifts, contributions into a company and grants of Hak Guna Bangunan or Hak Pakai over freehold land, and a transfer of land rights can only be registered at the land office on the strength of such a deed.
1 guide
Before construction starts, the owner must obtain a PBG (Persetujuan Bangunan Gedung, building approval), the permit that replaced the old IMB under the Job Creation law and PP 16/2021.
3 guides
Check that the builder is a registered business with an NIB and holds a construction business certificate (SBU), which Indonesian law requires of every business doing construction work and which can be searched on the LPJK website.
A quantity surveyor prices a design before it is built, measures the bill of quantities that builders price against, values the work actually done before each payment, prices variations and agrees the final account.
Indonesia's Construction Services Law makes the contractor liable for building failure caused by its fault for a period set by the planned service life of the construction, capped at 10 years from final handover where that life is longer, and the owner is liable after that period.
1 guide
Indonesian law requires every business entity that carries out construction services to hold a business certificate (SBU), and the national business classification (KBLI 2020) places pool building, garden construction and finishing work such as flooring, wall and ceiling finishes, painting and interior decoration under construction.
3 guides
It depends on how the villa is rented: rent from leasing land or a building is taxed at a final 10% of the gross rent under PP 34/2017, but that rule excludes income from lodging services, which is taxed under the general income tax rules.
Bali villa managers charge in three main ways: a percentage of booking revenue, a percentage of net profit after operating costs, or a percentage plus a fixed monthly fee.
Renting accommodation to tourists is a tourism business, and Indonesian law requires a tourism business to hold a business licence, which is now issued through the risk-based OSS system against a KBLI business code such as 55193 (villa).
1 guide
The Directorate General of Immigration lists investor visas (the E28 family), which tie the stay to shares in or the founding of an Indonesian company, and second home visas (the E33 family), which need no sponsor but require a guarantee such as USD 130,000 in a state-owned bank.