Ubud Property
Once upon a time…
Nearly a quarter of a century ago, Ubud Property was founded during a golden era.
At that time, property prices were very affordable, and there were very few regulations about where and what could be built.
But today, the situation has changed. Rules have been established, and prices reflect the high demand
…a demand that keeps rising, because the quality of life in Bali remains legendary.
Before we dive into the core of what you’re here to learn, we suggest grabbing a drink—because naturally, this topic can be a bit “dry.”
You may already know: Foreigners cannot directly own Freehold (Hak Milik) land in Bali, as this land title is reserved for Indonesian citizens.
However, for residential or investment purposes, foreigners can legally and securely hold land rights that allow long-term use and control.
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Leasehold (Hak Sewa)
This is the most common and straightforward option.
You lease the land from an Indonesian landowner, typically for 25 or 30 years. According to the notarial agreement, the lease can often be extended, according to the agreement between the lessor & the lesse
You have exclusive rights to use and build on the land during the lease period.
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Right to Use (Hak Pakai)
This right allows foreigners with long-term residence permits (KITAS/KITAP) or foreign legal entities to use land for specific purposes.
Granted for an initial 30 years, it can be extended for 20 years and renewed for another 30 years—a total of up to 80 years.
Hak Pakai can be granted over state land or private land with Freehold status.
This is a strong land right and is often used to build residential properties.
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Right to Build (HGB) via a Foreign-Owned Company (PT PMA)
A PT PMA (Foreign Investment Limited Liability Company) is a limited company with foreign investment.
Establishing a PT PMA is the safest way for foreigners to “own” property for commercial or investment purposes (such as building rental villas, resorts, etc.).
A PT PMA can hold an HGB (Hak Guna Bangunan) certificate, which is the highest property right available to foreign entities.
HGB is valid for 30 years, extendable for 20 years, and renewable for another 30 years again, up to 80 years in total.
The property certificate is issued under the company name, not the foreign individual.
This structure offers flexibility for development and business operations, while providing stronger legal protection for your investment.
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It is absolutely essential that your property investment is handled by trusted professionals
An established property agency, a certified notary (PPAT), and if necessary, an experienced legal advisor.
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Due Diligence: A Key Step in Purchasing Property
A certified Notary (PPAT) will carry out a thorough legal inspection during the ownership transfer process, resulting in a Due Diligence report, which includes:
• Ownership and certificate verification
• Property ownership history
• Seller’s legal authority
• Land usage declarations
• Zoning and spatial planning regulations
• Building permits for existing structures
• Outstanding taxes and fees
• Transaction costs
• Land boundary survey
• Road and access verification
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Zoning and Land Use Regulations in Bali
Bali’s land zoning system follows the RTRW (Regional Spatial Plan), categorizing land into specific zones for certain purposes.
This system is inspired by Tri Hita Karana, a Balinese philosophy emphasizing harmony.
Main zoning categories include:
• Green Zone:
For agriculture, forestry, and conservation (e.g., rice fields, nature reserves). Construction is strictly prohibited.
• Yellow Zone:
For residential use (houses and private villas). Small businesses may be allowed. Buildings typically limited to 2–3 floors.
• Pink Zone:
For tourism use such as hotels and resorts. Private residential buildings are not allowed unless part of a resort.
• Red Zone:
For commercial and industrial use (shops, restaurants, offices). Private construction may be restricted, especially in public areas like near schools.
• Orange Zone:
Mixed-use (residential and commercial). Flexible for both local and tourist-oriented developments.
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Additional Technical Regulations
• Building Height Limit:
The “coconut tree rule” limits buildings to a maximum of 15 meters (around 3 floors). Exceptions are rare—typically for hospitals or airports.
• Setback Regulations:
For example, 15 meters from riverbanks or cliffs, based on geological surveys.
• Balinese Architectural Guidelines:
In certain zones, modern architecture must incorporate traditional Balinese design elements.
• Green Space Requirements:
Minimum 20% in residential zones and 40% in tourism zones must be preserved as green open space.
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How to Check Land Zoning?
This is crucial before buying or building. You can:
• Visit your local BPN office (for Ubud, this is in Gianyar), or check via their online platform
(e.g., the GISTARU zoning portal)
• Apply for PKKPR (Approval of Spatial Use Suitability), the official document that confirms the zoning, permitted activities, and allowable building ratios (KDB and KLB)
Or simply consult with a trusted local property agency—like Ubud Property.
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Building Permits – PBG (Persetujuan Bangunan Gedung)
Once your plans are confirmed and you’re ready to build, you’ll need a Building Permit, now called PBG (Building Approval).
PBG ensures your construction complies with technical standards, building codes, and zoning regulations.
Once issued, a PBG is valid for the lifetime of the building.
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If you’ve read this far and are curious to learn more about the process in greater detail, just visit our office and share your questions and situation with us.
With 20 years of experience and a reputation built on trust, you’ll be in the right hands.