Part 1: Event Insights & Key Takeaways
Wayana: Good afternoon, Pak Terje. My name is Wayana, co-founder of Bukit Vista. Thank you for the amazing event today—so insightful! Could you give me a summary of what was presented?
Terje: Thank you for coming and for your kind words. The main focus today was real estate in Bali, especially the do’s and don’ts for foreigners. We covered company structures, a bit about taxes, but mainly zoning, ownership, and how to secure your future or current investments—whether through titles or leases.
Part 2: Hot Topics & Zoning Challenges
Wayana: What was the most interesting question raised by participants?
Terje: The most controversial and frequently asked questions were about zoning regulations. Many people aren’t aware, for example, how difficult it is to get commercial permits in yellow (residential) zones. Zoning and its limitations were definitely the hottest topics today.
Wayana: Is there an online way to check zoning?
Terje: Yes, you can use the Batara map. Enter your location, and it’ll show you the zoning and permitted activities. Right now, it’s in Indonesian, but they plan to add English soon.
Part 3: Risks of Green Zone Investments
Wayana: What happens if someone unknowingly buys property in a green zone or tourism area not zoned for private villas? Could they lose their investment?
Terje: So far, I haven’t seen the government demolish villas, though there are rumors about possible demolitions in Uluwatu, especially for cliffside properties without permits. Generally, if it’s farming land (not rice fields), you can’t build, but you probably won’t lose the property. In the past, some areas switched from residential to green zone and back again, but existing permits were honored. Still, it’s wise to mitigate risks by structuring your investment properly and ensuring all your permits and paperwork are in order.
Part 4: Foreign Ownership & Legal Structures
Wayana: Foreigners can’t legally own freehold titles in Indonesia, yet many buy villas in Bali. How is this possible?
Terje: It’s not really tolerated, but it’s become a norm because many agents and notaries don’t fully explain the legalities. Technically, a foreigner can own freehold, but it gets converted to an HGB (Right to Build) or Hak Pakai (Right to Use) title for residential purposes. If you later sell to an Indonesian, it can be converted back to freehold without losing value. However, we always recommend using a PT PMA (foreign-owned company) for ownership, regardless of title. It’s safer legally and offers better protection in disputes.
Part 5: Practical Advice for Foreign Investors
Wayana: What’s your message to foreigners thinking of investing in Bali? What homework should they do?
Terje: Think carefully about your goals—is it commercial, residential, or development? Have a clear business plan and do your numbers before you look for land. Don’t buy land first and try to fix issues later—it’s much harder that way. Always use common sense and follow regulations, just as you would at home. Be diligent with permits, legal structures, and compliance. With the government making regulations more transparent and tools like AI and online maps available, it’s easier than ever to check what you can and can’t do. Diligence and compliance will lead to a great investment and good returns.
Wayana: Thank you so much for your insights, Terje. I’ll be sure to share this with others—these legal discussions are invaluable!
Terje: Thank you, Wayana, and thanks for coming. Glad to share knowledge and help the community.