Main criteria
Reputation and experience in the market
Before making a decision, find out about the builder's background:
- How many years in the market? - experienced companies are more familiar with local specifics and legal intricacies.
- How many projects have already been realized? - the number of completed projects indicates the stability of the business.
- Are there any completed and successfully delivered projects? - It is especially important to have examples with good ROI (return on investment).
- Customer reviews - look not only on the developer's website, but also in independent sources (Google, social networks, Telegram chats).
Legal legality of the company
Make sure that the company is actually authorized to do construction in Indonesia:
Company Form:
- PT PMA is a company with participation of foreign investors
- PT Local - local company (cannot sell land to foreigners directly)
- Availability of IUJK construction license
- Verification in OSS Indonesia (Online Single Submission) - it is possible to request registration data and verify it on the official platform
Transparency and documents
A good builder is always open about the documents and process:
- The contract must be in English (or with an official translation)
- It's important to request:
- Architectural plans
- Cost estimates
- Construction schedule
- Warranties (for construction, communications, etc.)
Obligatory documents
For the developer:
- SHM (Sertifikat Hak Milik) - land ownership certificate
- Land lease agreement - if the land is not owned (usually for 25-30 years with the possibility of extension)
- IMB or PBG - building permit
IMB is an old format
PBG - effective from 2022
- SLF (Sertifikat Laik Fungsi) - issued after completion of the facility, confirms compliance with standards
- NPWP - tax number of the company
- SIUJK - construction license
For the client:
- Sale or lease agreement
Must include: timing, cost, payment milestones, warranties, liability
To be certified by an independent notary
- Payment documents
Use official transfers and keep SWIFT receipts
- Power of attorney
If you are not in Indonesia, get it registered with a representative (e.g. a lawyer)
* Property rights in Indonesia:
- Hak Sewa (Leasehold) - rental property, leased for a long term (usually 25-30 years with an option to extend). A popular option among foreigners.
- Hak Milik (Freehold) - Lifetime ownership, full ownership of the land and facility. Available only to Indonesian citizens.
- Hak Pakai (Right to Use) - right to use, the official right to use real estate. It can be granted to foreigners, but without the right to transfer or sublet.
- Hak Guna Bangunan ( HGB ) - right of development, right to develop and use land
- Hak Milik Atas Rumah Susun - ownership of an apartment in an apartment building
Land zoning in Bali
Before purchasing, it is important to understand what zone the lot is located in:
Yellow - Residential area: private houses, villas
Pink - Hotels, Hostels, Guest Houses
Red - Commercial and industrial zone
Zelenaya - Agricultural land (construction limited)
Brown - Reserves, cultural sites (construction prohibited)
ROI: Return on Investment
Return on investment options:
- ROI from rent: Average income - 13-17% p.a.
- ROI from resale:
Flipping (resale at the final stage of construction or after handover)
Resale after value growth
- Mixed ROI (rental + resale):Potential for up to 20-30% p.a. on a 5-year horizon
Special conditions offered by real estate developers
- Installment payment: from 1 to 3 years
- Discount on 100% payment: up to 10%
- Paying a portion of the cost with rental income: up to 40%
- Reduced down payment: 20-40%
- Discounts when buying several units: from 2 or more objects
