Buying guides

Buying Off-Plan in Bali: Risks and Protections

October 10, 2026 · Last updated: November 7, 2026

Off-plan villas and apartments in Bali can work well, but the risks are real. What PP 12/2021 requires before a developer can sign a PPJB, what to verify, and the clauses that protect your payments.

Buying off-plan in Bali means paying for a property before it is finished, under a PPJB (preliminary sale agreement). PP 12/2021 only allows a developer to sign one once land status is clear, the building approval is issued, utilities are available and construction has reached 20%. Verify each, then negotiate payments and delay terms.

Off-plan can offer earlier pricing and a choice of units, and a well-run project delivers exactly what it promised. The risks are also clear: delay, changes to the specification, permits that do not match the project, or a developer that cannot finish. The protections exist mainly in what you verify before signing and what you write into the agreement.

Key points

A PPJB is regulated by PP 12/2021 and must be signed before a notary.
Preconditions: certain land status, building approval (PBG), available utilities and infrastructure, and at least 20% construction progress.
Verify the developer's land right (or lease), PBG, zoning and company documents yourself through the notary.
Tie payments to construction milestones, not to dates alone.
Negotiate delay penalties, refund rights and a clear specification.
Check the tenure you will receive at completion — freehold title, HGB, Hak Pakai or a lease — and its remaining term.

What is a PPJB and what does PP 12/2021 require?

A PPJB (Perjanjian Pengikatan Jual Beli) is a binding preliminary agreement to sell, used when the final deed (AJB) cannot yet be signed because the property is not finished or not yet split onto its own certificate. PP 12/2021 on housing regulates it rather than leaving it entirely to the developer.

Before a developer may enter into a PPJB, the regulation requires:

certainty of the land status,
the building approval (PBG),
availability of utilities and infrastructure,
construction progress of at least 20%,
and the PPJB must be signed before a notary.

Each item is a document or a fact you can verify rather than a promise you have to trust. If a developer asks you to sign a "reservation" or "booking" agreement for a project that does not yet meet these conditions, understand what that document actually commits each side to, and whether your money is refundable.

What are the main risks of buying off-plan in Bali?

Delay: projects run late for many reasons — permits, contractors, weather, funding.
Non-completion: a developer that runs out of money or loses its land right may not finish.
Specification changes: materials, layouts or facilities that differ from the brochure.
Permit mismatch: a building that does not match its PBG or zoning, which can block the SLF and the final transfer.
Tenure surprises: a "freehold" project that is in fact leasehold, or a lease whose term started long before your unit is delivered.
Rental promises: guaranteed returns or rental programmes that depend on the developer's future performance and on the right licences.

What should I verify before signing?

Ask the notary or PPAT to verify:

The developer: company deeds, directors, NIB and licences through OSS.
The land: the certificate (SHM, SHGB or Hak Pakai) or the head lease, in the developer's name or with a documented right to develop, free of mortgages or disputes. If the land is leased, check the head lease term and extension terms — your unit cannot outlast them.
Zoning: KKPR confirmation that the project's use (residential, tourism accommodation) fits the spatial plan.
PBG: issued and matching the plans you are buying.
Construction progress: evidence of the stage reached, ideally verified on site.
Unit certificate path: how and when your unit will receive its own title or lease, and in what form.

Our due-diligence checklist covers these checks in more detail.

Which clauses protect my payments?

Milestone payments: instalments linked to verifiable construction stages, not to calendar dates.
Delivery date and delay penalties: a firm handover date, a penalty per period of delay, and a right to terminate with a refund after a defined delay.
Refund mechanism: how much is refunded, within what time, if the developer fails to deliver or a condition is not met.
Specification annex: detailed materials, finishes, areas and facilities, with the drawings attached.
Area tolerance: what happens if the delivered area differs from the contract.
Defects period: a retention or warranty period after handover for the developer to fix defects.
Transfer before completion: whether you can assign your contract to someone else, and at what cost.
Final deed and certificate: the developer's obligation to complete the AJB or lease deed and deliver the SLF.
Payments through proper channels: to the developer's company account against receipts, never to individuals.

What about taxes on an off-plan purchase?

A new building sold by a VAT-registered developer carries VAT, and BPHTB is due from the buyer when the right is acquired. Rates, allowances and any incentives in force on the transaction date should be confirmed — see taxes and fees when buying in Bali. Ask the developer whether quoted prices include VAT.

How should I treat rental guarantees?

Some projects offer a guaranteed rental return or manage the units as holiday rentals. Treat any guarantee as a promise by the developer or its operator, worth what that company is worth and what the contract allows you to enforce. Check who holds the business licence for renting the units, under which KBLI, and whether the zoning allows tourism accommodation. Our rental income guide explains how to estimate yield yourself rather than relying on a brochure.

A short off-plan checklist

Developer's company and licences verified.
Land right or head lease verified, with remaining term.
Zoning (KKPR) fits the project's use.
PBG issued and matching the plans.
Construction at least 20% before the PPJB.
PPJB signed before a notary.
Payments tied to milestones, with delay penalties and refund rights.
Specification and drawings annexed.
Path to the final deed, unit title or lease, and SLF written in.

Off-plan projects appear in our catalogue alongside completed properties; delivery timing and payment schedules are set by each developer, and we confirm them project by project. Browse current listings and areas such as Canggu, Uluwatu and Seseh, and ask us for the project documents before you reserve.

This guide is general information, not legal advice. Your notary reviews the PPJB with you before you sign.

Last reviewed: October 2026

FAQ

Is buying off-plan in Bali safe?

It can be, if you verify the developer, land right, zoning and PBG through a notary and sign a PPJB that meets PP 12/2021 with milestone payments, delay penalties and refund rights. The risks — delay, non-completion and permit mismatches — are real and should be addressed in the contract.

What is a PPJB?

A Perjanjian Pengikatan Jual Beli, a binding preliminary sale agreement used before the final deed can be signed. Under PP 12/2021 a developer may only sign one once land status is certain, the PBG is issued, utilities are available and construction has reached at least 20%, and it must be signed before a notary.

Can I get my money back if an off-plan project is delayed?

Only as your contract allows. Negotiate a firm handover date, penalties per period of delay and a right to terminate with a refund after a defined delay, with the refund timing written in.

Do I pay VAT on an off-plan villa?

A sale by a VAT-registered developer carries VAT. Ask whether the price includes it, and confirm the rate and any incentive in force on your transaction date with your notary or tax adviser.

What tenure will I get on an off-plan unit?

It depends on the project: a title such as HGB or Hak Pakai, or a lease. For a leasehold project, check when the lease term starts and the head lease the developer holds, because your unit cannot outlast it.

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