How to Build Legally in Bali (2025): Step-by-Step Guide for Beginners

Where I start?

Okay, you fell in love with the island and decided to make a project for yourself or for rent.

Congratulations! Bali is the perfect place for your investment and making your development dream come true!

So, Where do you start?

First – understand your budget.

Second – define the purpose of your project. If You want to leave in peace – then you dont have to pick top location, that can save you a lot of money. If the project is fully commercial – here is where you need to collect the proper analytics about areas, locations, competition and niche.

As per reports of several big management companies, there is a big lack of premium niche homes with proper quality and too tier management. There are tourists that got used to a very sophisticated living and they are ready to pay, but unfortunately during last four years we only could see the intensive growth of medium class, comfortable homes, apartments and townhouses, which often doesn’t have a proper outside area or garden.

So, you have understood your budget, the purpose of construction, the size of the building and niche. Next step is to chose the land in the location that meets your expectation. And here why you need to know the  Clear Zoning Explanation.

If you want to build a home, villa, or commercial project in Bali, you need to follow local rules — especially zoning laws. This guide explains everything clearly and simply, from how to check land to how to get legal permits like PBG and SLF.

What Is Zoning (RDTR)?

Zoning in Bali is based on the official spatial plan called RDTR (Rencana Detail Tata Ruang), which shows what can legally be built on a specific piece of land.

RDTR maps use colors to indicate land use. If the color is wrong — you cannot legally build.

Zoning Color Guide (RDTR Map Legend):

Important: Even if land is sold as “villa land,” you must check the color yourself on the official map or with help of a zoning consultant.

How to Check the Zoning:

• Ask your agent or notary to check RDTR zoning

• Check online https://map.perare.io/ here you can find the market price and the type of zoning

• Visit Dinas PUPR (Public Works Office)

• Use official RDTR map viewer (if online for your area)

• Hire a licensed consultant to confirm legally

PHASE 1: CHOOSE LAND & LEGAL PREP

1. Choose Land in a Buildable Zone

• Yellow = residential ( You can live)

• Pink = tourism ( You can rent daily, but only through legit management company)

• Red = commercial ( You can do business here)

• Avoid green zones for building (agricultural or protected)

2. Check Land Certificate 

• SHM (freehold) is illegal for a foreigner

•  HGB/Leasehold is the best and the safest solution to get a land

• Make a full due diligence for the land to avoid unwanted disputes in future

• It is better to make a due diligence at the notary and through the independent legal company, that can go on site, speak to neighbors and collect all the important information about the family of the owner. Please do not underestimate the importance of the full deep due diligence
• Here you should understand that ONLY ORIGINAL certificates should be brought by the owner to the notary office. Not copies.
• All the family members should approve the deal
• Make sure you create an agreement where inheritance issues cannot break or stop your leasehold agreement
• Make sure there is no court issues are pendind, there are no loans on this land.
• Make a paragraph in the leasehold agreement saying that the owner cant get a mortgage using this land
• Check if yo have a right to sublease
• Confirm the legal road access, make sure the land will not landlocked in future
• If the project is on the cliff – it is highly recommended to make a soil test before paying for the land. Sometimes land is not usable for construction.

PHASE 2: DESIGN & PLANNING

4. Hire Licensed Architect / Consultant that can prepare the technical document in Indonesian language  – that is high key important because those papers you will have to apply with for construction permit.

They will:

• Design plans

• Check compliance with RDTR

• Prepare files for permit applications

5. Ensure Infrastructure Feasibility

• Water, road, electricity, drainage

PHASE 3: PERMITS

 Apply for PBG (Building Approval)

Required before starting construction

Submit via SIMBG.go.id

Documents include:

• Land certificate

• Zoning map

• Legal entity docs

• Architect plans

• SPPL or UKL-UPL (environmental)

7. Environmental Documents

• Small projects = SPPL

• Medium = UKL-UPL

• Big = AMDAL

PHASE 4: CONSTRUCTION

 Choose Contractor & Sign Contract

• Must follow PBG-approved design

• Sign RAB (detailed budget)

Supervise & Document

• Hire project manager

• Keep records & photos

• Avoid design changes without permission

PHASE 5: POST-CONSTRUCTION

10. Apply for SLF (Certificate of Worthiness)

You need this before renting or using the building

Documents:

• As-built photos

• Final plans

• Construction reports

• Submit via SIMBG

PHASE 6: USAGE / RENTAL SETUP

11. Business Licenses (if renting out)

• Apply for Pondok Wisata (if under local PT) or Hotel License (if under PT PMA)

12. Set Up Property Management

• Housekeeping, maintenance, booking systems (Airbnb etc.)

In Summary: Follow This Order

1. Check zoning color on RDTR

2. Verify land title (SHM, HGB)

3. Set up PT PMA (if foreigner)

4. Hire architect + make design

5. Apply for PBG

6. Build with supervision

7. Apply for SLF

8. Register business licenses (if renting)

9. Operate legally

Final Advice:

• Green = STOP: Never build on green or protected zones

• Yellow / Pink = GO: Safest zones for villas and rentals

• Always check zone, land, and permits before money changes hands