Bali Off-Plan Property Due Diligence Checklist

Before buying off-plan property in Bali, a foreign buyer should complete five checks: verify the land certificate at BPN, confirm the zoning, see the building permit, review the PPJB, and check the developer's track record. A licensed Indonesian notary (PPAT) acting under your Power of Attorney can handle each of these remotely, so no site visit is needed before you sign.

Start with the land certificate. Ask for the original from the seller and have your PPAT cross-check it at the local Ministry of ATR/BPN office. The check confirms the registered owner, the plot boundaries, and any encumbrance such as a Hak Tanggungan mortgage. Certificate type matters for a foreign buyer: only Indonesian citizens can hold Sertifikat Hak Milik (SHM, freehold). A PT PMA company holds Hak Guna Bangunan (SHGB/HGB), and a foreigner with an Indonesian residence permit can hold Hak Pakai. Legacy village tax records such as Girik or Letter C are not registered titles under Indonesian law and cannot be transferred without first converting them at BPN. A seller who can only show a Girik is a significant red flag, not a routine condition to overlook.

Next, confirm the zoning. The regency spatial plan (RTRW) and its detailed layer (RDTR) set what construction is permitted on each plot. Agricultural land bars permanent buildings entirely; tourism or residential zones allow villa development. In Tabanan, verify that the plot is not productive agricultural land covered by Bali Governor's Instruction Number 5 of 2025, which bans rice field conversion to tourism across six regencies from 2 December 2025, per Emerhub's coverage. Then check the building permit. Under PP No. 16/2021, the PBG (Persetujuan Bangunan Gedung) replaced the older IMB. A developer who cannot show a PBG has not cleared the step that off-plan buyers are depending on.

The PPJB is the binding pre-sale agreement that locks in your price, payment schedule, unit specification, and delivery date. Under Article 10(1) of Permen PUPR No. 11/PRT/M/2019, a developer cannot sign a PPJB until physical construction has reached at least 20 percent completion, the land title is clear, and the PBG is in hand. The PPJB should name both parties, describe the unit and its specification, set penalties for late delivery, and include a dispute resolution clause. Stage your payments against verified construction milestones rather than calendar dates, so each tranche is tied to confirmed progress. Finally, check the developer's track record: verify their NIB through the OSS portal, ask for completed project addresses, and confirm those titles are cleanly registered at BPN. A developer who presses you to pay before the PPJB legal threshold is met is a clear warning sign. Foreign buyers cannot hold SHM in any form, and nominee structures where an Indonesian national holds freehold on your behalf are not legally enforceable. The ownership routes that work are leasehold, Hak Pakai, or a PT PMA company, as covered in our guide for foreign buyers. This is general information, not legal or investment advice; have a licensed Indonesian notary review every document before you commit.