Bali’s charm has never failed to invite people to put it on their holiday wish list. Not only happening among foreign tourists, but the tradition happens amidst locals too.
Unfortunately, during the pandemic, Bali’s conditions which were once crowded with tourists suddenly turned quiet. Kuta, Legian, Seminyak, Nusa Dua, and Ubud which were used to be crowded turned into uninhabited cities where shophouses and art shops are closed, as well as hotels around it.
Villa Investment Increases During Pandemic
Based on data from the Representative Office of Bank Indonesia Bali shows that Domestic Investment (PMDN) during 2020 reached Rp 5,432.7 billion and Foreign Investment (PMA) reached a value of 293.3 million US dollars. This data indicates that Bali is still attractive to investors who are still optimistic about the development of the Covid-19 pandemic situation in Bali.
Plus data from international research institute Knight Frank Global which noted that the super-rich in the Ultra High Net Worth Individual (UHNWI) category in Indonesia jumped by 67 percent in the period 2020-2025.
Interestingly, 25-28 percent of their funds are invested in the property sector. Based on this data set, although still in a pandemic situation, the property sector in Bali is still attractive to investors because it is considered to have a positive trend.
Guideline to Building a Villa in Bali
Do you want to build a villa ini bali? Do you know building a Villa in Bali can be tricky without the right guidelines and professional help, especially in a country full of complex land tenure regulations and investment requirements. We will provide you step by step guide to effectively build your villa in Bali in the below:
Establish a Connection to PT PMA
In Indonesia especially Bali, you must make a contact with the Foreign Owned CompanyA Foreign Owned Company or called PT PMA is the only legal entity that allows foreigners to conduct business or own property in full compliance with Indonesian property laws and regulations.
Searching the best location
Bali island is a relatively small, and some of the land prices can vary from corner to corner.
In developing and developed areas such as Canggu and Seminyak, land prices are estimated to cost around Rp 600 million to 1.5 billion (USD 40,000 – 105,000) per 100 sqm, while the remote land is valued at around Rp 100 million to 350 million (USD 7,000 – 24,000) per 100 square meters.
Get land
Indonesia has many forms of land titles and ownership that are of concern to foreign investors to build villas in Bali. Generally, some of real estate agents and private landowners will refer you to rental or property rights. Contact or consult to the expert in Indonesia for more concise information on land ownership in Indonesia.
Appoint an architect
Appointing a bali architect that fits your specific design needs requires not only in-depth knowledge of the local market, but also you need to be more understanding of the specific design style you desire.
Apply for a building permit
If you want to start building, you must have permit of Building Indonesia or it called IMB. This permit is an official permit that permits the construction of buildings in Indonesia. Before getting it, you need to check the spatial plan and land zoning regulations per area your building will be built on. The reason is some certain lands or zones only allow the use of certain buildings.
The permit is currently being phased out and already expire in January 2022. Soon it will be replaced by the PBG and SLF permits under the new Omnibus Laws that overhaul and regulate Indonesian laws under the guidance of President Joko Widodo’s administration
Appoint contractor
You know? the cost of building a villa in Bali can start from Rp. 6 million per square meter to Rp. 14 million per square meter, so finding the right contractor who can provide services on time, within budget, and meets high standards is challenging.
