How to verify land in Bali: legal checklists and best practices
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Land verification in Bali: legal tips for buyers and investors

Kristina Martynova The author of the article, the Broker
#Blog DDA
20 October 16380 views

Land Verification on Bali (2025): How to Check Land Titles, Zoning, and Ownership Legally

Buying land in Bali can be one of the best investments in Southeast Asia — if you verify it properly.

Behind the beaches and tropical calm lies a complex system of land titles, zoning regulations, and permits that every investor must understand.

For foreigners, due diligence isn’t optional — it’s the foundation of a secure purchase.

This 2025 guide by DDA Real Estate explains how to verify land ownership, confirm zoning, and avoid common legal pitfalls before you buy property in Bali.

Land Verification Checklist

Step What to Verify Where to Check Why It Matters
1 Land ownership certificate (SHM/HGB) BPN (Land Office) Confirms legal owner
2 Zoning classification Dinas Tata Ruang Defines what can be built
3 Land boundaries Licensed surveyor Prevents overlap disputes
4 Building rights and PBG SIMBG System Legalizes construction
5 Lease or sale contracts Notary (Notaris) Must be bilingual & notarized
6 Tax and permit records Local Tax Office Confirms no unpaid liabilities

Every verified document adds another layer of protection for your investment.

Understanding Land Titles in Indonesia

Indonesia’s land law divides ownership into several categories — and not all are available to foreigners.

Title Type Description Foreign Ownership
Hak Milik (Freehold) Full ownership for Indonesian citizens Not allowed
Hak Sewa (Leasehold) Long-term lease (25–80 years) Allowed
Hak Guna Bangunan (HGB) Right to build and own on leased land Via PT PMA
Hak Pakai (Right of Use) Limited right for residential use Certain cases

For foreigners, the safest options are Hak Sewa (Leasehold) or HGB via PT PMA (foreign-owned company).

Ownership Verification — SHM, HGB, and IMB

Always request the original ownership certificate before negotiating.

  • SHM (Sertifikat Hak Milik): freehold title for Indonesian citizens only.
  • HGB (Hak Guna Bangunan): allows foreigners to build through PT PMA.
  • IMB/PBG: confirms that any structure is legally permitted.

Verification process:

  1. Visit the BPN (Badan Pertanahan Nasional) or check bpn.go.id.
  2. Request a Land Book Copy (Salinan Buku Tanah) by providing the certificate number and location.
  3. Confirm that ownership data matches the seller’s ID and property address.

If the owner refuses a BPN check — walk away immediately.

Zoning and Building Restrictions

Every plot on Bali is classified into a specific zoning category (RTRW):

  • Yellow Zone: residential (villas, houses)
  • Red Zone: commercial (restaurants, resorts, shops)
  • Green Zone: agricultural — building prohibited
  • Tourism Zone: mixed-use, subject to additional approvals

Check zoning at:

  • Local Dinas Tata Ruang (Planning Office), or
  • Via your architect or notary using the RTRW map.

Never rely on verbal assurances — request the official zoning confirmation letter before purchase.

Pro Tip — Land Survey Matters

Hire a licensed surveyor (registered with BPN) to conduct a patok survey and re-measure the boundaries.

Even a 10–20 cm difference can cause disputes with neighbors or invalidate permits later.

Surveyors also confirm whether your plot matches the coordinates registered in the BPN database.

Leasehold and Contract Verification

Foreign buyers typically acquire land under Hak Sewa (Leasehold).

To be valid, contracts must be:

  • Signed in front of a Notary (Notaris),
  • Written in English and Indonesian,
  • Registered with BPN (Land Office).

Check these points:

  • Lease duration (25–30 years standard, with extensions)
  • Renewal clauses and rights
  • Tax responsibilities (lessor or lessee)
  • Usage purpose (residential, commercial)
  • Payment method and penalties

A non-notarized lease carries no legal weight — always go through a registered notary.

Construction and Building Legality — PBG and SLF

If the land includes existing buildings, ensure the structure is registered and approved:

  • PBG (Persetujuan Bangunan Gedung) — building permit replacing IMB
  • SLF (Sertifikat Laik Fungsi) — safety and occupancy certificate

Why it matters:
    These documents are required to:

  • Obtain Pondok Wisata (rental license)
  • Connect electricity and water
  • Sell or transfer the property legally

You can verify permits via the SIMBG platform or through your architect and notary.

Tax and Encumbrance Verification

Before closing the deal, check that:

  • All PBB (Land and Building Taxes) are paid,
  • There are no mortgages (Hak Tanggungan) or ownership disputes.

The Tax Office (Kantor Pajak) and BPN can issue confirmation letters upon request.

Unpaid taxes or hidden mortgages can block registration or resale.

Common Land Scams in Bali

Scam Type Description How to Avoid
Fake Certificates Forged SHM/HGB Verify directly with BPN
Nominee Ownership Local holds land “for” foreigner Use PT PMA or leasehold
Green Zone Sales Agricultural land sold as “villa land” Check RTRW zoning
Double Selling Same land sold to multiple buyers Request updated Land Book Copy
Unlicensed Agents Brokers without legal registration Work only with certified agencies

Real Case Example

In 2024, several foreign investors bought “commercial” plots near Ubud, only to discover the land was part of a protected green zone.

Authorities stopped construction and revoked permits — losses exceeded $200,000.

A quick zoning check at Dinas Tata Ruang could have prevented the mistake.

Before You Buy — 5 Essential Documents

Before transferring any funds or signing a sale or lease agreement, make sure you have verified five critical documents.

These papers define whether your land purchase is legal, secure, and recognized by Indonesian authorities.

Without them, your ownership rights — or even your building — could later be challenged.

1. Copy of the Land Certificate (SHM or HGB)

This is the primary proof of ownership.
Every legally registered plot in Indonesia has a certificate issued by BPN (Badan Pertanahan Nasional).

  • SHM (Sertifikat Hak Milik) — Freehold title, available only to Indonesian citizens.
  • HGB (Hak Guna Bangunan) — “Right to Build,” which allows foreign ownership through a PT PMA structure.

What to check:

  • The certificate must match the seller’s full name and ID (KTP or passport).
  • The address and land boundaries must align with the physical location.
  • Ensure there are no handwritten corrections or missing pages.
  • If the seller hesitates to provide a clear copy of the certificate — stop negotiations immediately.

2. Land Book Copy (Salinan Buku Tanah) from BPN

The Land Book Copy is an official extract from the BPN registry confirming the legal status and ownership history of the land.
It includes information about mortgages, disputes, or previous transactions.

Where to get it:

  • Visit the nearest BPN Office or use their online service at bpn.go.id.
  • You’ll need the certificate number and owner’s name.

Why it matters:

This document ensures the title is authentic and up to date.

Without it, you risk buying land that’s already pledged, mortgaged, or even sold to someone else.

In Bali, double sales (the same land sold twice) are one of the most common property scams — and this one piece of paper prevents it.

3. Zoning Confirmation (RTRW Letter)

Zoning rules on Bali are strict and determine what can be built on a particular plot.
A piece of land may look perfect for a villa but fall into a green zone, where construction is illegal.

What the RTRW Letter confirms:

  • Whether the land is residential, commercial, tourism, or agricultural.
  • Whether short-term rental operations (Pondok Wisata license) are allowed.
  • Whether expansion, subdivision, or new development is permitted.

Where to get it:
From the Dinas Tata Ruang (Regional Planning Office) in your regency — Badung, Gianyar, Denpasar, or Tabanan.
Never rely on word-of-mouth assurances like “everyone builds here.” Only an official zoning letter provides legal protection.

4. PBG + SLF (Building Permits and Usage Certificates)

If the plot already includes a structure — a villa, house, or resort — you must confirm that the building is legally approved.

  • PBG (Persetujuan Bangunan Gedung) replaces the old IMB and confirms that the construction complies with zoning and safety laws.
  • SLF (Sertifikat Laik Fungsi) certifies that the building is safe for occupancy and has been inspected by authorities.

What to check:

  • PBG and SLF numbers should match the property address.
  • They must be registered in the SIMBG online system.
  • For rental properties, the owner must also hold a Pondok Wisata license.

Without valid PBG and SLF, your building can’t be legally rented, sold, or connected to public utilities.

5. Tax Payment Receipt (PBB)

The PBB (Pajak Bumi dan Bangunan) is Indonesia’s annual land and building tax.
Before buying, confirm that all taxes on the property have been fully paid.

How to check:

  • Request the latest PBB receipt (it looks like a small printed slip with a QR or barcode).
  • Cross-check with the Kantor Pajak (local tax office) if needed.

Ensure there are no outstanding dues or penalties.

Why it matters:

If the previous owner hasn’t paid land tax, you as the new lessee or buyer might become responsible — and unpaid taxes can delay ownership registration.

A clean tax record is one of the simplest signs of a legitimate property.

Final Advice — Don’t Rush the Paperwork

These five documents form your legal shield as a buyer or investor.
If even one is missing or inconsistent, pause the deal immediately until proper verification is complete.

A genuine seller will never refuse transparency. And a professional notary or real estate agency — like DDA Real Estate — can obtain and cross-check all documents through BPN, Dinas Tata Ruang, and tax offices on your behalf.

On Bali, due diligence is not bureaucracy — it’s your insurance policy against losing hundreds of thousands of dollars.

Real Contacts & Resources

Institution Purpose Contact
BPN (Badan Pertanahan Nasional) Verify land titles and ownership bpn.go.id
Dinas Tata Ruang Zoning and land-use confirmation Local Regency Office
Notary (Notaris) Contract verification & registration Licensed locally
Polresta Denpasar Report land fraud Hotline 110

Read also: Buying land on Bali, First Investment: Buying a Land or a Finished Property, Why Should You Invest in A Beachfront Property in Bali.

DDA Real Estate — Land Verification and Legal Support

DDA Real Estate provides full legal due diligence for investors buying land or property on Bali.

Our services include:

  • Title verification with BPN
  • Zoning and permit checks
  • Lease contract structuring and translations
  • Developer background and tax review
  • We protect your capital and ensure your land is legally clean, compliant, and investment-ready.

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