A Practical 2026 Guide to Buying Property in Bali for Investors
Bali recorded nearly 7 million foreign visitors and around 9 million domestic trips in 2025, according to Statistics Indonesia (BPS) Bali and Indonesia’s Ministry of Tourism:
- Foreign tourists (direct arrivals to Bali, Jan–Dec 2025): 6,948,754 visits
- Domestic tourist movement in 2025: 9.28 million visits
This strong tourism performance continues to support rental demand and occupancy. For investors, that often translates into attractive yield opportunities.
1.Zoning in 2026 Is About More Than the Zone “Color”
In Bali, land is divided into official zoning categories such as residential (yellow), tourism (pink), commercial (red), agricultural (green), and protected zones (green). These determine what can be built and how land may be used.
The colors offer a quick visual reference — but in practice, what matters most is the official zoning designation and permitted activities, which must be reviewed together with KBLI activity codes for full compliance.
Under Indonesia’s modern OSS licensing framework, every property must align in two connected ways:
- Spatial zoning – where the land is located
- KBLI business activity codes – what you’re legally allowed to do on that land
Both must match your strategy.
If your goal is to:
- Operate short-term rentals
- Run hospitality services
- Offer daily or weekly stays
- List on Airbnb or Booking platforms
These activities must be explicitly permitted under the KBLI (Klasifikasi Baku Lapangan Usaha Indonesia) codes attached to the landholder or the Developer.
This is where early guidance matters — and where Sunchasers helps investors verify compliance before moving forward.
2. KBLI Codes: Make Sure Activities Match Your Strategy
Indonesia’s licensing system relies on KBLI codes to define what an operating entity can legally do.
Simply put:
- Zoning = where you can do things
- KBLI = what you are allowed to do
Sunchasers reviews both zoning and KBLI at the due diligence stage, helping ensure your investment is built on solid foundations.
3. What Is a PBG — and Why It Matters
One of the most important regulatory changes for 2026 investors is the shift from IMB (Izin Mendirikan Bangunan) to PBG (Persetujuan Bangunan Gedung).
PBG is now the only valid authorization for building in Indonesia. It confirms that your plans meet technical, safety, spatial, and regulatory standards before construction, expansion, or major alterations can begin.
Unlike the old system, PBG focuses on technical approval:
- Architectural, structural, and mechanical plans must meet national and local codes
- Designs are verified against zoning and spatial regulations through SIMBG
- After construction, the SLF (Sertifikat Laik Fungsi / Certificate of Worthiness) is required before the building can be legally used or listed online
These steps directly affect timelines and returns — which is why Sunchasers works closely with developers and legal consultants to monitor these important permits.
4. Treat Rentals Like an Operating Business
If your strategy includes rentals, profitability depends on operational performance of the property.
Key ongoing costs typically include:
- Management company fees
- Maintenance reserve funds
- Utilities, internet, pest control, pool and garden upkeep, insurance
- Marketing, OTA fees, guest services, and quality control
These expenses are to be redacted from gross revenue — and should always be built into your financial model.
5. Off-Plan Early Pre-Sale Investment Strategy
Off-plan opportunities often offer stronger ROI and capitalisation potential, but they also concentrate risk in developer performance and contract quality.
Sunchasers’ developer pre-screening process is designed to control and mitigate these risks. Minimum protections we aim for include:
- Construction milestone-based payment schedules
- Official payment confirmations from the developer
- Clear contract penalties for delays beyond 6 months
- Developer’s construction site insurance
- Developer responsibility for PBG and SLF certificates, with money-back guarantees if not obtained in time
This structure helps investors move forward with greater confidence.
6. Budget for Taxes and Fees
Every investment model should account for additional costs:
- One-off notary cost (upon ownership transfer): 1% for Leasehold, 5% for Freehold
- Annual property tax PBB: 0.1% – 0.5% of the assessed property value
- Rental income taxation: if applicable, depending on your tax residency
To Summarise
Bali remains a powerful lifestyle-investment destination. In 2026, success is defined by educated decisions and risk assessment: understanding zoning, aligning KBLI, checking PBG and SLF and modeling real operating costs.
With the right structure and support, these aren’t obstacles — they’re simply part of building smart, compliant investments.
At Sunchasers, we guide investors through every step, from due diligence to developer screening and operational readiness — so you can focus on the opportunity, while we help manage the details.
