Bali Property Due Diligence Checklist: What to Verify Before Any Deposit
**Before you transfer a single rupiah of deposit on a Bali property, verify four things in writing: the original land certificate (SHM or HGB) at the local BPN land office, the zoning (zona) of the plot, a valid building permit (IMB or the newer PBG), and that the named seller legally controls the land. Skip any one and you are gambling.** Most painful Bali property stories trace back to one of these four gaps, not to bad luck. This checklist, current as of June 2026 (rules and figures subject to change), walks through each step the way an honest concierge would brief a client.
A quick honesty note first. Bali Investor Club is operated by Bali Premium Trip, an independent broker and concierge. We are not the land owner, not a government body, and not a licensed notary, lawyer, or tax adviser. Treat everything below as a structured prompt for the questions you ask a licensed Indonesian notary (PPAT) and your own lawyer. The final decisions, and the legal sign-off, rest with those professionals and the authorities, never with us.
Why does due diligence matter so much in Bali?
Because foreigners cannot hold freehold (Hak Milik / SHM) land in Indonesia, most foreign-linked deals run through leasehold, a PT PMA company holding Hak Guna Bangunan (HGB), or a structure built on someone else’s certificate. That extra distance between you and the title is exactly where problems hide: a certificate that is photocopied not original, land sold twice, a villa built in a green zone that can be demolished, or a “seller” who is only one of several heirs.
Due diligence is simply closing that distance before money moves. The checklist below is ordered the way the verification should actually happen.
How do you verify the land certificate (SHM)?
The certificate is the spine of the deal. There are several title types you will meet in Bali:
| Title | Indonesian name | Who can hold it | Typical use |
|---|---|---|---|
| Freehold | Hak Milik (SHM) | Indonesian citizens only | Held by local owner; basis for a lease |
| Right to Build | Hak Guna Bangunan (HGB) | Indonesian citizens and PT PMA | Common for foreign-owned company structures |
| Right to Use | Hak Pakai | Foreigners with KITAS/KITAP, PT PMA | Residence on freehold land |
| Leasehold | Hak Sewa (contractual) | Anyone, by agreement | The most common foreigner route |
What to actually check on the certificate:
- See the original, not a scan. Ask the notary to physically inspect the SHM/HGB book and compare it against the BPN (Badan Pertanahan Nasional) land office record. A certificate check (pengecekan sertifikat) at BPN confirms the certificate is genuine and matches the registry.
- Match the name on the certificate to the seller’s KTP (national ID). They must be the same person, or there must be a clear, documented chain (inheritance, power of attorney).
- Confirm the plot boundaries and size against the certificate map. Drone or survey measurements that disagree with the certificate are a red flag.
- Search for encumbrances — any mortgage (Hak Tanggungan), caveat, or pending dispute registered against the land. The BPN check surfaces these.
- For leasehold, read the lease itself: term length, extension rights, who pays which taxes, and whether the lease is notarised. An un-notarised lease is weak.
What does zoning (zona) tell you, and where do you check it?
Zoning decides what you are legally allowed to build and operate. A plot in a green/agricultural zone (often called zona hijau) cannot legally host a commercial villa, no matter how nice the listing photos look. Buildings put up against the zoning have been subject to sealing and demolition orders in Bali.
Check zoning through the regional spatial plan (RTRW / RDTR) for the relevant regency — Badung, Gianyar, Tabanan and so on each have their own rules. Practical steps:
- Request the zoning information letter for the specific parcel from the local planning office (Dinas Tata Ruang / via the OSS system).
- Confirm the zone allows your intended use: residential, tourism/accommodation, or commercial.
- Check setback and height limits — Bali enforces building height caps in many areas.
- If the plan is short-term rental or a villa business, verify the zone permits accommodation, not just a private dwelling.
How do you confirm the building permit — IMB or PBG?
Indonesia replaced the old IMB (Izin Mendirikan Bangunan) building permit with the PBG (Persetujuan Bangunan Gedung) system. Older buildings may still hold a valid IMB; new construction needs a PBG, plus an SLF (certificate of worthiness) once built.
For any existing building, verify:
- A valid IMB or PBG exists and the permit number is real (check via the regency or OSS).
- The permit matches what is actually on the ground — number of floors, footprint, and use class. A house permit on a building run as a 10-room villa is a problem.
- For a structure still being built, the developer holds the PBG before construction, not promised “later.”
If there is no building permit, treat the price as land-only and assume the structure carries legal risk.
How do you verify the seller and the paperwork?
Even a clean certificate is worthless if the person selling does not actually have the right to sell. Run this seller checklist:
- Identity: KTP and tax number (NPWP) that match the certificate holder.
- Marital and inheritance status: Indonesian marital property and inheritance law can mean a spouse or several heirs must all consent. One signature is not always enough.
- Power of attorney: if an agent signs, confirm the power of attorney is genuine, current, and notarised.
- Independent notary: use a PPAT/notary you or your lawyer chose, not only the one the seller introduces.
- Funds in escrow or staged: avoid large cash deposits before the BPN check clears.
Use this as your final go/no-go gate:
| Checkpoint | Verified? | Who confirms it |
|---|---|---|
| Original certificate matches BPN registry | Yes / No | Notary (PPAT) + BPN |
| Seller name matches certificate + KTP | Yes / No | Notary |
| Zoning permits your intended use | Yes / No | Planning office / OSS |
| Valid IMB or PBG matches the building | Yes / No | Regency / OSS |
| No mortgage, dispute, or hidden heirs | Yes / No | Notary + lawyer |
If every row is not a confident “Yes,” do not pay the deposit.
What should you do next?
Treat this checklist as the agenda for your first meeting with a licensed notary and lawyer, not a substitute for them. Get the certificate check, zoning letter, and permit confirmation in writing, in your name, before any money moves. A deal that cannot survive these five checkpoints is a deal positioned to cost you far more than the deposit you were about to send.