Das Arbeitsvokabular des Bali-Investors.

Total room revenue divided by rooms sold. The headline price-per-night metric for accommodation operators.

Canggu 3-bed villa ADR runs USD 250–450 in peak season, USD 150–280 in shoulder. ADR alone is meaningless – combine with occupancy to derive RevPAR or annual revenue.

Siehe auch: RevPAR, Occupancy Rate

Directorate General of General Legal Administration. The Ministry of Law unit that registers and validates all Indonesian legal entities (PT, CV, Yayasan, Koperasi). AHU SK is the operative entity-existence certificate.

Every PMA must hold a current AHU SK. Lapses can trigger entity dormancy or strike-off. Buyers of existing PMAs should verify AHU status before close, not after.

Siehe auch: PT PMA, Akta Pendirian

The final deed of sale executed before a notaris. AJB transfers legal ownership from seller to buyer and is the document BPN uses to issue the new certificate.

You sign PPJB first to lock the deal; AJB is the actual transfer. Foreigners cannot hold Hak Milik via AJB – only Hak Pakai, HGB (via PMA), or a lease.

Siehe auch: PPJB, Notaris, BPN

A notarised deed transferring property as a gift between parties without monetary consideration. Subject to PPh and BPHTB calculated against NJOP.

Sometimes proposed as a "tax-efficient" workaround for foreigners – almost always with hidden risk. A nominee giving "freehold" via Akta Hibah is a textbook structure courts have voided. Never accept Akta Hibah from a non-relative party as the basis of your title.

Siehe auch: Nominee structure, BPHTB

The notarised founding deed of an Indonesian legal entity such as a PT PMA. Sets shareholders, share split, directors, commissioners, and lines of business (KBLI codes).

Original Akta Pendirian (with subsequent amendments) must be presented in BPN transfers, bank account openings, and tax registrations. Foreign buyers acquiring an existing PMA should always demand the full deed history, not just the latest amendment.

Siehe auch: PT PMA, KBLI, AHU

The notarised statement of heirs and inheritance distribution under Indonesian succession law. Required before transferring title from a deceased owner to heirs.

Foreign-held property left to non-Indonesian heirs faces forced disposal under Article 21 UUPA – the heirs cannot inherit Hak Milik. Plan succession via PMA + corporate share inheritance, or via Hak Pakai with explicit will.

Siehe auch: Hak Milik, PT PMA

Environmental Impact Assessment. Required for projects with high or significant environmental footprint – large hotels, resort developments above a regency threshold, projects on sensitive coastal or forest land.

Single-villa builds do not normally trigger AMDAL but multi-villa estates and large clifftop developments do. AMDAL takes 6–18 months and adds material cost. UKL-UPL is the lighter regime for medium-impact projects.

Siehe auch: UKL-UPL, IMB / PBG

The notarised mortgage deed granting a security interest (Hak Tanggungan) over land in favour of a creditor. Registered at BPN to be enforceable.

Always run an APHT search at BPN before purchase – a property may carry an undischarged mortgage from a prior owner. Closing should release any existing APHT with a notarised release deed before AJB.

Siehe auch: Hak Tanggungan, BPN

Ministry of Agrarian Affairs and Spatial Planning. The ministry under which BPN sits and which oversees land titling, spatial planning, and the cadastral system.

Major policy shifts (PMA capital changes, spatial-plan revisions, certificate digitisation) come from ATR. Track ATR press releases for incoming changes that materially affect foreign-buyer structures.

Siehe auch: BPN

The codified customary law of each desa adat. Sets community obligations, conduct rules, and penalty regimes. Recognised by Indonesian provincial regulation in Bali.

Awig-awig can require property owners to contribute to communal rituals, restrict construction during certain ceremonial periods, and impose dispute resolution forums. Foreign-owned villas are not exempt.

Siehe auch: Desa Adat, Banjar

Single-entry visitor visa for tourism, social, or business meetings. Up to 60 days, extendable twice 60 days each (180 days total). Replaced by C-class visas in the 2023 reforms but legacy term still in use.

Common visa for property viewings and pre-purchase scouting trips. Not a residency basis – do not sign long-term leases or PMA documents on B211A; switch to KITAS first.

Siehe auch: KITAS

Traditional Balinese neighbourhood unit – several dozen to several hundred families bound by customary ties, communal labour, and shared rituals. Smaller than a desa.

Buying property in a Banjar without acknowledgement to the local council can cause community friction – manifesting as permit delays, social blockage, or disputes. Engage early through the seller or a local legal counsel familiar with desa-adat practice.

Siehe auch: Desa Adat, Awig-awig

The central bank of Indonesia. Sets monetary policy, manages the Rupiah, regulates foreign exchange transactions, and oversees the payment system.

BI regulations govern how foreign capital enters and exits Indonesia – relevant to PMA capital deposits, dividend repatriation, and large property transactions. BI-FAST is the modern real-time payment rail.

Siehe auch: Devisa, BI-FAST

Regional Development Planning Agency. Produces the spatial plans (RTRW / RDTR) that determine which land can host which use, and reviews changes to those plans.

Spatial plan revisions can rezone formerly tourism-permitted land into green zone, devaluing existing holdings. Tracking Bappeda revisions is part of corridor-risk monitoring.

Siehe auch: RTRW / RDTR, Zonasi

Bank Indonesia's real-time interbank payment system. Replaces the older RTGS / SKN for most retail and SME transfers up to IDR 250M per transaction.

Domestic Rupiah transfers for property deposits, manager payments, and PMA expenses settle on BI-FAST within minutes. Cross-border settlements still flow through correspondent banks and traditional SWIFT.

Siehe auch: Bank Indonesia

The Indonesian Investment Coordinating Board. Now operates under the umbrella of the Ministry of Investment / Kementerian Investasi. Approves foreign investment, issues NIB (business ID numbers), and sets PMA capital requirements.

Any PT PMA registration flows through BKPM (OSS system). The current minimum paid-up capital per business classification is IDR 10 billion – a material gate on setting up a foreign-owned property business.

Siehe auch: PT PMA

The buyer-side transfer duty on land and building acquisition. Five percent of the transaction value above a regionally-set threshold (NPOPTKP).

Payable by the buyer before AJB signing. Always model BPHTB into your acquisition budget – on a $500k villa, you are looking at roughly $25k extra before closing.

Siehe auch: AJB

The National Land Agency. Issues and maintains land certificates (SHM, SHGB, SHP), records transfers, and resolves title disputes.

Any certificate you receive – whether freehold, HGB, or Hak Pakai – is a BPN document. Always verify the certificate against BPN records before signing; forged certificates circulate in Bali.

Siehe auch: SHM, SHGB

Net Operating Income divided by property value. The market-standard income-yield metric for income property. NOI excludes financing costs and includes management.

Cap rate is the metric institutional buyers and brokers use. Bali villa cap rates run 6–9 percent on managed STR product – competitive against developed-market commercial real estate.

Siehe auch: Gross Yield, Net Yield

Indonesian Ministry of Tourism certification standard for accommodation operators introduced post-2020. Voluntary but increasingly required for OTA distribution and corporate guests.

Holding CHSE is a low-cost certification that signals operational professionalism to OTAs and high-end corporate guests. Renewal annual. Worth pursuing for premium positioning.

Siehe auch: TDUP

Indonesian limited partnership. Two partner classes: active (unlimited liability) and silent (limited to capital contribution). Indonesian-citizen-only.

Sometimes proposed to foreigners as "silent partner" vehicle. Not legitimate – CV cannot host foreign capital. Any "CV + foreign silent partner" pitch is structurally equivalent to a nominee scheme.

Siehe auch: Nominee structure, PT PMDN

A Bali-specific institution – the customary village, parallel to the administrative village (desa dinas). Holds collective authority over Tanah Adat, ritual life, and inter-banjar matters.

Desa adat consent is often the unspoken precondition for villa development success in central Bali. The Balinese governance system runs in parallel to the formal Indonesian administrative one – respect both.

Siehe auch: Banjar, Tanah Adat, Awig-awig

Foreign exchange or hard currency. BI maintains reporting requirements on devisa inflows and outflows above thresholds.

PMA capital must enter Indonesia as devisa through an Indonesian bank, not as direct cash injection or local-currency-only flow. Document the inbound wire trail; you will need it for repatriation later.

Siehe auch: Bank Indonesia

Regency-level Cultural and Tourism Office. Issues TDUP, Pondok Wisata licences (where applicable), and tourism business compliance audits.

Operating a Bali villa as a tourism accommodation without Disbudpar registration is a clear violation. Renewal cycles vary by regency; track expiry calendars in your operations binder.

Siehe auch: TDUP, Pondok Wisata

Indonesian Golden Visa investment-pathway category introduced in 2023. 5-year and 10-year tracks, requiring USD 350K (5-year) or USD 700K (10-year) investment in approved instruments or Indonesian-incorporated business.

Allows long-stay without PMA setup. Property purchase via approved structures can count toward the investment threshold. Slower investor adoption than the publicity suggested – verify scope and approved instruments with current regulations before relying on it.

Siehe auch: Second Home Visa, KITAS

A contract clause excusing performance when extraordinary events (natural disaster, pandemic, government action) make performance impossible or unreasonable. Indonesian Civil Code Articles 1244–1245.

Bali force-majeure exposure includes volcanic eruptions, tsunami advisories, large earthquakes, and pandemic restrictions. Lease and PPJB contracts should specify the force-majeure regime explicitly – Indonesian default rules can be unfavourable to the non-performing party.

Siehe auch: Wanprestasi

Perpetual ownership of land, equivalent to Hak Milik in Indonesian law. Reserved exclusively for Indonesian citizens – foreigners cannot hold it directly.

If a broker offers a foreigner "freehold Bali land", it is always through a nominee structure or a PT PMA. Both have trade-offs; understand them before signing.

Siehe auch: Hak Milik, Nominee structure, PT PMA

A pre-1960s village-level land tax receipt sometimes still treated as proof of ownership in informal rural transactions. Not a registered title.

A red flag in any Bali transaction. Girik land has not been converted to BPN certificates and carries weak enforceability. Foreign buyers should never accept Girik as the basis of purchase – require conversion to SHM (then leasehold or HGB under PMA) first.

Siehe auch: Letter C / Petok D, SHM, BPN

Annual rental income before operating costs, taxes, and reserves, divided by acquisition price. Headline number most Bali listings quote – often 10–15 percent gross on Canggu STR product.

Gross yield is the marketing number, not the investor number. Always subtract OTA commission, property manager fee, PPh Final, CapEx reserve, vacancy, and operating costs to get the real net. Plan from net, not gross.

Siehe auch: Net Yield, Cap Rate

Building Setback Line. The minimum distance buildings must keep from road edges, river banks, beach lines, and adjoining parcels under regency regulations.

Beachfront GSB in Bali is typically 100m from the high tide line under provincial regulations – plots within that strip cannot host residential or tourism buildings. Cliff-edge GSB varies by regency. Verify against the parcel before LOI.

Siehe auch: KDB, KLB, Zonasi

The right to construct and own buildings on land for a defined term (30 years, extendable 20 + 30). Held by Indonesian legal entities, including PT PMA.

The standard structure for a foreign investor holding commercial property or villa developments through a PT PMA. HGB is the closest foreign-accessible equivalent to freehold for business use.

Siehe auch: PT PMA, SHGB

Full perpetual ownership of land. The strongest title type in Indonesian law. Restricted by Article 21 of the Basic Agrarian Law (UUPA 1960) to Indonesian citizens and certain Indonesian legal entities.

Foreigners who "buy freehold" in Bali almost always do so through a nominee – an Indonesian citizen who holds the legal title on their behalf. The structure is common, but not legally bulletproof, and has been challenged in court.

Siehe auch: Freehold, Nominee structure

A right granted to foreigners and foreign entities to use land and buildings for a defined period (typically 30 years, extendable twice for 20 and 30 years – up to 80 total).

The only title type a foreigner can hold in their own name (with a KITAS). Acceptable for a primary residence but usually not for rental-business structures – those go through PT PMA + HGB.

Siehe auch: KITAS, Hak Guna Bangunan

The right held by state or quasi-state entities to manage state land, with authority to grant subordinate rights (Hak Pakai, HGB) to third parties. The framework behind Nusa Dua (ITDC), Mandalika, and similar tourism development zones.

If a Nusa Dua villa is on HGB sub-granted from ITDC's HPL, the term and renewal regime is set by ITDC, not by you. The certificate looks like HGB but with a parent HPL above it – different exit dynamics.

Siehe auch: Hak Guna Bangunan, Hak Pakai

A contractual right to use and enjoy land or property for a defined term, paid up-front or annually. Governed by the lease agreement, registered at the notaris but not usually at BPN.

The most common foreign-investor structure in Bali. Typical terms run 25 years with extension options totaling 50–80 years. Value declines as the remaining term shortens – treat a 15-year leasehold very differently from a 45-year one.

Siehe auch: Notaris

A statutory security interest in land registered against the certificate. Allows the creditor to foreclose if obligations are unmet. Created by APHT and registered at BPN.

Foreign-held Hak Pakai cannot be encumbered by Hak Tanggungan in most cases – limiting financing options for foreigners. PMA-held HGB can.

Siehe auch: APHT, BPN

Right of cultivation – the land-use right covering plantation, agricultural, livestock, and large-scale fishery operations. Term 35 years, extendable 25 + 35.

Almost never the right structure for residential or tourism property. If a parcel is on HGU, redeveloping it for villa use requires zoning change and right conversion – a regulator-heavy process that is usually impractical for foreign buyers.

Siehe auch: Hak Guna Bangunan, SHGU, Zonasi

IMB was the old building permit; PBG is its replacement under the 2021 Cipta Kerja reforms – a permit to construct or materially alter a building.

No PBG = no legal building. A common due-diligence failure in Bali is buying a villa whose PBG does not match the actual footprint. Always verify before transfer.

Siehe auch: SLF

A residency permit (2-year or 5-year) issued to foreign shareholders of a PT PMA meeting a minimum capital participation (typically IDR 1 billion direct shareholding).

Lets you live in Bali long-term without a work KITAS. Requires maintained PMA status and can be affected if the PMA is dissolved or falls below compliance.

Siehe auch: KITAS, PT PMA

Land Use and Utilisation Permit. The regency-level approval that a specific parcel can be used for the proposed activity (residential, tourism, commercial). Precedes PBG.

A parcel can be on a residential-zoned RDTR yet lack IPPT for villa use – the gap is a frequent surprise. Demand IPPT confirmation, not just RDTR map showing the right colour.

Siehe auch: Zonasi, IMB / PBG

The discount rate that makes the net present value of all cash flows (acquisition, operations, exit) equal to zero. Captures both income yield and capital appreciation in one number.

Bali villa IRR over 7–10 years typically lands 10–15 percent including modest capital appreciation. Off-plan IRR can run higher (15–22 percent) if delivery risk is acceptable. Compare IRR against opportunity cost, not against gross yield.

Siehe auch: Cap Rate, Net Yield

Permanent Stay Permit – the statutory name for the underlying KITAP authorisation.

Used interchangeably with KITAP in regulations and immigration practice.

Siehe auch: KITAP, KITAS

Limited Stay Permit – the statutory name for the document granted to KITAS holders. KITAS is the physical card; ITAS is the underlying authorisation.

When Indonesian regulations refer to ITAS, they mean the same status as KITAS. Older documents may use one term, newer the other.

Siehe auch: KITAS, ITAP

Indonesian regency – the second-level administrative subdivision. Bali has eight regencies and one city: Badung, Gianyar, Tabanan, Bangli, Karangasem, Klungkung, Buleleng, Jembrana, and Denpasar city.

Property permits, taxes, and spatial plans are administered at the kabupaten level. A villa in Badung kabupaten (Canggu, Uluwatu) follows Badung rules; a villa in Gianyar (Ubud) follows Gianyar rules. Differences are material.

Siehe auch: RTRW / RDTR, Disbudpar

Indonesian Standard Industrial Classification. A 5-digit code specifying the business activity a PMA is licensed to conduct. Multiple KBLI codes per company are allowed but each adds capital and compliance requirements.

A villa-rental PMA needs at minimum KBLI 55130 or 55110/55120. Real-estate trading is KBLI 68111. Property management is 68201. Adding KBLI codes ad-hoc raises capital requirements and triggers fresh permits – plan the KBLI scope before Akta Pendirian.

Siehe auch: NIB, OSS RBA, PT PMA

The 2-digit KBLI category covering accommodation services. Includes 55110 (star-rated hotels), 55120 (non-star hotels), 55130 (Pondok Wisata / homestay), 55193 (villa class).

Foreign-owned villa-rental PMA usually registers KBLI 55193 (villa) and/or 55120 (non-star hotel) depending on configuration. KBLI 55130 Pondok Wisata is reserved for Indonesian-citizen-held businesses on Hak Milik land – PMA cannot register it.

Siehe auch: KBLI, Pondok Wisata

The 2-digit KBLI category covering real estate activities. Includes 68110 (real estate owned/leased), 68111 (trading), 68120 (rental, own property), 68201 (real estate on fee/contract basis).

A PMA that buys, develops, and rents villas typically registers under both 68110 and 68120. Adding 68111 (trading) means selling on, which has different capital and tax treatment.

Siehe auch: KBLI, PT PMA

Building Coverage Ratio. The maximum percentage of a parcel that can be covered by built footprint under local zoning. Bali residential zones typically permit 40–60 percent.

A 1000 m² plot with 50 percent KDB allows up to 500 m² of building footprint at ground level. Exceed KDB and PBG is denied, or the excess is ordered demolished. Always model KDB before designing.

Siehe auch: KLB, IMB / PBG

Ministry of Investment / BKPM. Combined into a single ministry as of 2021. Oversees foreign investment policy, PMA registration, and the OSS portal.

Minimum capital changes, KBLI restrictions, and PMA sectoral negative-list updates all flow from this ministry. The 2021 Cipta Kerja law and subsequent regulations reshape PMA practice on a recurring basis – stay current.

Siehe auch: BKPM, PT PMA

Permanent Stay Permit. Issued after holding KITAS for typically 3–5 consecutive years (varies by KITAS class). Valid 5 years, renewable indefinitely.

KITAP confers near-permanent residency without the renewal pressure of KITAS. Investor KITAP requires sustained PMA shareholding and tax compliance. Cannot hold Hak Milik but extends Hak Pakai tenure.

Siehe auch: KITAS, Investor KITAS

Limited-stay residency permit. Issued for work, family, retirement, or investor sponsorship. Typically valid 1–2 years, renewable.

A KITAS is a prerequisite for a foreigner to hold Hak Pakai directly. It also enables local bank accounts, vehicle registration, and NPWP (tax ID) issuance.

Siehe auch: Investor KITAS, Hak Pakai

Floor Area Ratio. The maximum total floor area as a multiple of land area under zoning. Bali residential KLB typically 0.8–1.6.

A 1000 m² plot with KLB 1.2 allows up to 1200 m² total floor area across all storeys combined. KLB and KDB together set the building envelope; design against the binding one.

Siehe auch: KDB, IMB / PBG

Village-level land record predating the 1960 UUPA Basic Agrarian Law. Indicates customary or historical occupation but is not a registered title.

Equally problematic as Girik. Many Bali rural and hillside parcels remain on Letter C / Petok D. Costs and timelines to convert to SHM at BPN can run IDR 50–200M and 6–18 months – budget and timeline this before purchase, not after.

Siehe auch: Girik, SHM

Property leased for monthly or annual terms, typically furnished or semi-furnished, with one tenant per term. Lower revenue, lower operating cost than STR.

Bali LTR yields run lower (5–8 percent gross) but the cost stack is dramatically simpler – no OTA commission, lower management fee, lower CapEx reserve. Appropriate for absent owners or first-time investors.

Siehe auch: STR

Loan amount divided by property value. The lender-side leverage metric.

Bali property financing for foreigners is limited – domestic Indonesian banks typically lend only against Indonesian-citizen-held SHM. Foreign borrowers usually finance offshore or pay cash. LTV is more relevant for institutional buyers via offshore SPV.

Siehe auch: Hak Tanggungan

Annual rental income after all operating costs, taxes, and reserves, divided by total acquisition cost (purchase + transaction). The figure that actually lands in the investor's bank.

On a managed Bali villa with 60 percent occupancy, net yield typically lands 6–10 percent against 10–15 percent gross. Hands-off / absent-owner setups frequently see 5–8 percent net. The full breakdown is in our [net yield analysis](/bali-villa-net-yield-2026-what-actually-pays).

Siehe auch: Gross Yield, Cap Rate, OTA

Business Identification Number issued through the OSS system. Mandatory for all Indonesian business activities, including PT PMA villa operations.

NIB is the gateway document for every other permit – tax, import, employment, sectoral licences. A PMA without NIB cannot legally invoice, hire, or hold a bank account in its own name.

Siehe auch: OSS RBA, KBLI, PT PMA

The tax office's assessed value of land and buildings. Reset annually by each regency. Forms the base for PBB, BPHTB, and PPh Final on property transactions.

NJOP is typically well below market – often 30–60 percent of actual transaction price. BPHTB calculation uses the higher of NJOP and declared transaction value, so understating the deal does not reduce tax below the NJOP floor.

Siehe auch: PBB, BPHTB

An arrangement where an Indonesian citizen holds legal title (Hak Milik) to land on behalf of a foreign beneficial owner, typically backed by side agreements (loan, power of attorney, irrevocable lease-back).

Legally fragile. Article 26(2) of UUPA 1960 voids transactions where foreigners indirectly acquire freehold. Courts have enforced this. Nominee structures work in practice for many investors, but are not what due diligence buyers want to see on resale.

Siehe auch: Hak Milik, PT PMA

A state-licensed notary. In Indonesia, notaris perform the legal authentication of deeds (AJB, PPJB, lease agreements) and are mandatory for property transfers.

Not interchangeable with Western notaries – Indonesian notaris have substantially broader authority, including drafting deeds and verifying title. Pick one independent of the seller.

Siehe auch: AJB, PPJB

Indonesian Taxpayer Identification Number. Issued to individuals and legal entities by the Directorate General of Taxes. Mandatory for tax-deductible income, bank accounts, property transactions, and PMA operations.

A foreign individual with KITAS can obtain NPWP – often required for the lower (resident) PPh Final rate. Operating a PMA without NPWP is impossible. Property purchase above certain thresholds also requires NPWP.

Siehe auch: KITAS, PT PMA

Total room-nights sold divided by total room-nights available. The utilisation metric for accommodation operators.

Bali managed STR villas in proven corridors typically hit 55–75 percent annualised occupancy. Below 50 percent suggests pricing, listing quality, or corridor-fit issues. Above 80 percent suggests under-pricing.

Siehe auch: ADR, RevPAR

The government online portal issuing business permits using a risk-based classification (low / medium-low / medium-high / high) by KBLI code. Operated by BKPM under the Ministry of Investment.

Bali villa rental falls under KBLI 55130 (Pondok Wisata) or 55110/55120 (hotel grades) depending on configuration. The risk class determines which additional permits (NIB only / standard certificate / verified standard certificate) are required.

Siehe auch: NIB, KBLI, BKPM

Third-party booking platform – Booking.com, Airbnb, Agoda, Expedia, Vrbo. Charges commission per booking (typically 15–20 percent).

Bali STR villas typically pull 60–80 percent of bookings through OTA. OTA commission is the single largest line item between gross and net yield. Direct-booking discipline (own website, returning guests) can shift this materially.

Siehe auch: Gross Yield, Net Yield

The number of years of net rental income required to recoup the original acquisition cost. Simple and intuitive but ignores time value of money and post-payback returns.

A USD 400k villa generating USD 30k/yr net pays back in 13.3 years pre-exit. Useful as a sanity-check number; not a substitute for IRR.

Siehe auch: IRR, Net Yield

Annual land and building tax. Calculated as 0.1–0.3 percent of NJOP (tax-assessed value), levied by the regency where the property sits.

A USD 500k villa in Canggu typically generates USD 300–800/yr PBB. Always confirm PBB is current before purchase – arrears transfer with the property and can be material on older holdings.

Siehe auch: NJOP, BPHTB

The party operating the villa day-to-day – guest communication, bookings, cleaning, maintenance, OTA listings, accounting. Standard commercial fee 15–22 percent of net revenue.

The single most important hire after closing. Verify track record on actual properties, not testimonials. Demand monthly P&L not just deposit confirmations. Cheaper managers usually cost more in lost occupancy and damaged assets.

Siehe auch: STR

The notarised plan dividing a multi-unit building into individual strata-title units (Sarusun – Satuan Rumah Susun). Required for condominium-style ownership.

Strata-title condominium is the closest a foreigner can come to apartment "ownership" – via Hak Pakai over the Sarusun unit. Pertelaan must be in place before individual SHGB-Sarusun certificates are issued.

Siehe auch: Hak Pakai, SHGB

A Bali-specific tourist accommodation license for small guesthouses of 1–5 rooms, held by an Indonesian citizen on Hak Milik land.

Commonly misrepresented to foreign buyers as a legitimate foreign-investor structure. It is not – Pondok Wisata cannot be held through PT PMA. If your "villa business" runs on Pondok Wisata via a nominee, you carry the full nominee risk stack.

Siehe auch: Nominee structure

Land Deed Official. A specially appointed notary authorised to draft land deeds (AJB, leasehold deeds, mortgage deeds). Not every notaris is a PPAT – verify the appointment before instructing.

Property transfers must be executed by a PPAT, not a general notaris. The PPAT must be appointed in the regency where the land sits. Always confirm the PPAT certificate and regency jurisdiction before signing AJB.

Siehe auch: Notaris, AJB

Withholding income tax on salary, wages, bonuses, and similar employment payments to individual residents. Progressive 5–35 percent based on annual income brackets.

If your PT PMA hires Indonesian villa staff, you withhold PPh 21 from their salaries and remit monthly. Common pitfall: foreign-paid expat managers are often misclassified, triggering PPh 26 not PPh 21.

Siehe auch: PPh 26, NPWP

Withholding tax on certain payments to Indonesian residents – services, rents, royalties, dividends, interest. Standard rates 2 percent on services / 15 percent on dividends and royalties.

When your PT PMA pays an Indonesian villa-management company a service fee, PPh 23 at 2 percent is withheld. Property manager invoices should already net of this.

Siehe auch: PPh Final, PPh 26

Withholding tax on income paid to non-residents of Indonesia. Standard 20 percent rate, often reduced by bilateral tax treaty.

Profit distributions from a PT PMA to a foreign shareholder are PPh 26 at 20 percent – or lower if a tax treaty applies (Singapore 10 percent, Netherlands 10 percent). Plan dividend timing accordingly.

Siehe auch: PPh Final, PT PMA

Indonesia's flat-rate final withholding income tax. The 10 percent rate on residential rental income paid to individuals is the most common variant Bali villa investors encounter; once withheld, no further income tax is due on that revenue.

On USD 40,000/yr villa rental gross to a foreign individual lessor, USD 4,000 is withheld as PPh Final before remittance. MSMEs registered under PP 23/2018 fall under a lower 0.5 percent of gross turnover regime instead.

Siehe auch: PPh 23, PPh 26, NPWP

The specific subsection of the Income Tax Law applying flat 10 percent final tax to land and building rental income paid to individuals. The legal basis for the 10 percent villa-rental withholding most foreign-individual lessors face.

When the lessor is an individual (not a company), the tenant or operator paying rent must withhold PPh 4(2) at 10 percent of gross rent and remit to the tax office. PT PMA rental income is taxed differently (corporate rate).

Siehe auch: PPh Final, PT PMA

A binding sale commitment signed before AJB. Locks price, conditions, and closing timeline; sets penalties for walk-away. Common on off-plan and new-build purchases.

Treat PPJB like an irrevocable commitment – your deposit (typically 10–30%) is at risk if you walk. Always condition PPJB on clean title, PBG/SLF verification, and zoning confirmation.

Siehe auch: AJB, IMB / PBG

A PPJB where the full purchase price has been paid but AJB has not yet been executed. Common on off-plan purchases where the buyer pays in milestones and the developer waits to issue title.

PPJB Lunas is not equivalent to having title. The buyer carries developer-default risk until AJB. A bankrupt or wanprestasi developer can leave PPJB Lunas buyers in line behind secured creditors. Always condition payment milestones on title-transfer triggers, not on construction milestones alone.

Siehe auch: PPJB, AJB, Wanprestasi

Indonesian value-added tax. Standard rate 11 percent as of 2026, scheduled to rise to 12 percent. Applies to most goods and services, with property-specific exemptions and special regimes.

New-build villa purchases from a registered developer typically attract PPN at 11 percent on the building portion. Resale between individuals usually does not. Off-plan contracts must specify whether the headline price is PPN-inclusive.

Siehe auch: BPHTB, PPh Final

Indonesian limited liability company. The default corporate form. Variants: PT PMA (foreign-investment), PT PMDN (domestic-only), PT Tbk (publicly listed).

A "PT" without modifier on a document usually means PT PMDN (Indonesian-owned). Foreign buyers should ensure documents specify PT PMA to confirm the entity is the right structure for their stake.

Siehe auch: PT PMA, PT PMDN

A Foreign Investment Limited Liability Company. Indonesian legal entity that can be majority or fully foreign-owned and can hold HGB, Hak Pakai, or Hak Sewa land rights.

The only legitimate path for a foreigner to operate a rental property business, employ staff locally, and hold a commercial real estate portfolio. Capital threshold: IDR 10 billion paid-up per line of business as of 2026.

Siehe auch: BKPM, Hak Guna Bangunan

Domestic Investment Limited Liability Company. PT entirely owned by Indonesian citizens or Indonesian legal entities. Cannot host foreign shareholders.

Buying shares in a PT PMDN as a foreigner triggers automatic reclassification to PMA – with all its capital and KBLI compliance implications. Never accept a "founder loan to a PT PMDN" structure as a foreign-buyer substitute.

Siehe auch: PT PMA, PT

ADR multiplied by occupancy. The operator-grade revenue metric per room per night across the period.

A villa at USD 300 ADR and 70 percent occupancy generates USD 210 RevPAR – useful for portfolio-level comparison across villas with different size and pricing.

Siehe auch: ADR, Occupancy Rate

Province-level (RTRW) and regency-level (RDTR) spatial plans setting zoning and permitted uses. Updated on multi-year cycles by Bappeda and provincial planning bodies.

The map you actually check when verifying zoning is RDTR for the specific regency (Badung, Gianyar, Tabanan). RTRW is the higher-level province plan. Some parcels are between revision cycles – verify the version your reading is from.

Siehe auch: Zonasi, Bappeda

Indonesian long-stay visa for foreigners aged 35+ depositing approximately IDR 2 billion in an Indonesian state bank or holding equivalent assets. Valid 5 or 10 years.

Marketed at retirees and remote workers. The deposit is held but not spent; interest accrues to the holder. Does not by itself permit work. Cannot replace PMA for active villa-rental operations.

Siehe auch: E33G, KITAS

Umbrella term for any BPN-issued land title certificate – SHM, SHGB, SHP, SHGU. The physical paper document attesting the registered right.

When a seller says "I have the certificate", always ask which type. Foreigners who confuse SHGB with SHM lose negotiation leverage; sellers who present SHM to a foreign buyer are setting up a nominee deal.

Siehe auch: SHM, SHGB, SHP, BPN

The physical land certificate documenting an HGB right. Issued and registered by BPN.

When buying through a PT PMA, this is the certificate you end up holding. Check the remaining term on the cover – HGB has a finite period and requires extension fees.

Siehe auch: Hak Guna Bangunan, BPN

Certificate of Right to Cultivate – the land title for plantation, agricultural, or large-scale fishery/livestock use. Term 35 years, extendable.

Rare in Bali residential property but can appear on hinterland tracts and former plantation parcels. SHGU land cannot be used for villa or tourism development without conversion to a different right – a costly multi-year process.

Siehe auch: HGU, BPN

The freehold land certificate issued by BPN. Indicates Hak Milik title held by an Indonesian individual or permitted entity.

If you are being offered an "SHM in your name as a foreigner", you are being sold a nominee structure – directly holding SHM is not legal for foreigners.

Siehe auch: Hak Milik, BPN, Nominee structure

The physical land certificate documenting a Hak Pakai right. Issued and registered by BPN. Available to foreign KITAS-holders, embassies, and certain state and religious entities.

The certificate type a foreigner with KITAS can hold in their own name for a personal residence. Commercial rental operations cannot be conducted under SHP without legal exposure – use PT PMA + SHGB instead.

Siehe auch: Hak Pakai, KITAS, BPN

Certificate of Worthiness of Function. Issued after PBG-approved construction is complete and inspected. Required for legal occupation and commercial use.

A common gap in Bali resale: PBG exists but SLF was never issued because the built structure differs from the approved plans. Without SLF, the building is technically not legally occupiable.

Siehe auch: IMB / PBG

Accommodation rented by the night or week, marketed through OTAs or direct channels. Higher revenue potential, higher operating intensity than long-term rental.

Bali STR economics are driven by ADR × occupancy minus OTA, manager, taxes, and reserves. Requires TDUP and either KBLI 55193 villa class (via PMA) or Pondok Wisata (Indonesian citizen only).

Siehe auch: LTR, OTA, TDUP

Balinese cooperative water-irrigation system. UNESCO-recognised cultural landscape. Governs rice terrace water rights and maintenance across mountainside Bali.

Subak land in central Bali is typically Tanah Adat with restrictions on conversion to villa use. Development pressure on Subak has triggered provincial regulatory pushback – check whether the parcel sits within a protected Subak landscape.

Siehe auch: Tanah Adat, Desa Adat

The official cadastral measurement document attached to a land certificate. Specifies coordinates, area, boundaries, and adjacent parcels.

A frequent source of mismatch in Bali: the Surat Ukur footprint and the actual built-out footprint differ, often because the seller built beyond the certified boundary. Always overlay Surat Ukur on the physical lot before signing PPJB.

Siehe auch: BPN, PPJB

Land governed by Balinese customary (adat) law and managed by the desa adat (customary village), not by BPN registration. Cannot be freely transferred to outsiders.

Some apparently freehold plots in central Bali villages are actually Tanah Adat subject to desa-adat consent. A BPN certificate alone is not enough – verify desa adat acknowledgement before purchase to avoid post-deal community blockage.

Siehe auch: Desa Adat, Awig-awig

Land owned by the Indonesian state, not yet granted to private parties. The pool from which Hak Milik, HGB, HGU, and HPL are issued.

Some clifftop and coastal strips in Bali are still Tanah Negara – officially unbuildable by private parties. Buying a "villa lot" that turns out to be encroaching on Tanah Negara is a complete write-off; verify the BPN classification before LOI.

Siehe auch: BPN, Hak Pengelolaan

Tourism Business Registration. Issued by regency Disbudpar (tourism office) to operators of tourism businesses including accommodation, restaurants, tour services. Required alongside NIB for legal tourism operation.

A Bali villa renting short-term to tourists must hold TDUP. Operating without TDUP carries fines and risk of business closure. TDUP is the sectoral licence on top of the OSS-issued NIB.

Siehe auch: NIB, Pondok Wisata, Disbudpar

Environmental Management and Monitoring Plan. The simpler environmental compliance regime for medium-impact projects below AMDAL thresholds.

Most Bali villa-scale projects fall under UKL-UPL rather than AMDAL. Still mandatory – building without an environmental document means PBG/SLF can be revoked and the structure ordered demolished.

Siehe auch: AMDAL, IMB / PBG

Failure to perform contractual obligations – non-payment, late delivery, defective performance, or refusal to perform. Indonesian Civil Code default remedy is enforcement plus damages.

A buyer who pays PPJB deposit then refuses to close is in wanprestasi; the seller can typically retain the deposit and sue for damages. Off-plan developers in wanprestasi (project delays, build defects, non-delivery) face the same regime.

Siehe auch: PPJB, Force Majeure

Indonesian foundation – non-profit legal entity for social, religious, or humanitarian purposes. Cannot distribute profits to founders or members.

Foreigners running schools, religious centres, or genuine non-profits in Bali use Yayasan. Misused as a property-holding vehicle, it triggers the same Article 21 UUPA issues as nominee structures.

Siehe auch: PT PMA

The land-use classification assigned under each regency's spatial plan (RTRW / RDTR). Determines whether land can host tourism, residential, commercial, or agricultural use.

Green zone (Kawasan Lindung) and agricultural zones in Bali cannot host villa or commercial development. Many clifftop and rice-field plots are in restricted zones – verify before LOI.

Siehe auch: RTRW / RDTR, IMB / PBG