A Bali deal from start to finish

A Bali deal has more moving parts than most markets: the type of land right, the zoning, the building permits and two kinds of officials, the notary and the PPAT. This lesson walks through three deals and finishes with a worked example in rupiah.

Who does what

• The broker (Indonesian, certified, working for a P4): lists, markets, qualifies, negotiates and keeps the file moving.
• The buyer’s independent lawyer: due diligence and contract review. Global Investments estimates IDR 20 million to 60 million.
• The notary: drafts and certifies agreements such as a PPJB (preliminary sale agreement) and lease deeds.
• The PPAT (land deed official): checks the certificate and signs the AJB (Akta Jual Beli, the sale deed). Transfers of land rights can be registered only with a PPAT deed (Hukumonline).
• BPN (the national land agency): holds the land register and issues the updated certificate.
• The tax offices: the seller’s final income tax goes to the national tax office, and the buyer’s BPHTB goes to the regency.
• The developer (off-plan only): builds, gets the permits and hands over.

Deal 1: a resale between Indonesians, or a Hak Pakai sale to a foreigner

1. Listing agreement signed with the owner, with the fee and payment date.
2. Offer and terms agreed in writing: price, deposit, timeline, what stays in the villa.
3. Certificate check (cek sertifikat). The PPAT checks the certificate at BPN for the registered owner, charges and disputes. A photocopy proves nothing.
4. Zoning and permits. Check the zone on the spatial plan, the PBG building approval (it replaced the old IMB) and the SLF certificate of fitness for use. Bali Exception describes green zones as farmland where building is heavily restricted.
5. All owners sign. Family land often has several heirs. Every one must consent.
6. PPJB, if needed. When payment is in stages or a document is still missing, the parties sign a PPJB before a notary. It does not transfer ownership by itself (Hukumonline).
7. Taxes paid. The seller pays final income tax of 2.5% of the gross price (Directorate General of Taxes). The buyer pays BPHTB of up to 5% of the value above a tax-free threshold of at least IDR 80 million (Hukumonline). Both are paid before the AJB.
8. AJB signed before the PPAT, and the balance is paid.
9. Registration. The PPAT sends the deed to BPN, which records the new owner.

For a foreign buyer under Hak Pakai, the steps are the same, but the price must meet the Bali minimum (IDR 5 billion for a house) and a Hak Milik house converts to Hak Pakai when a foreigner buys it (Hukumonline, PP 18/2021).

Deal 2: a leasehold villa

Most foreign buyers lease. Emerhub (June 2026) explains:

1. Agree the term, usually 25 to 30 years, and the extension clause, with the price or formula fixed now.
2. Run the same certificate, zoning and permit checks.
3. Sign the lease by notarial deed with the Hak Milik owner.
4. The lessor pays a final income tax of 10% of the gross rent. Ask the notary whether BPHTB applies and on what base, since Global Investments notes leases may be assessed differently.

When a leaseholder later sells the remaining years, Rumavi explains that the assignment is taxed as rental income: 10% for tax residents and 20% for non-residents unless a treaty reduces it, on the gross price.

Deal 3: off-plan

For houses sold by a developer under PP 12/2021, a PPJB can be signed before a notary only once five conditions are met: certain land status, a clear object of sale, the PBG, infrastructure, and at least 20% of construction (Hukumonline). If the developer is at fault and the buyer cancels, the developer must return all payments. If the buyer walks away, the developer may keep up to 10% of the price (Hukumonline).

Off-plan leasehold villas often sit outside these rules, with a land lease plus a build agreement. Tie each payment to a verified milestone and keep a real amount for handover with the SLF.

VAT. New builds from a VAT-registered developer pay VAT at an effective 11% (12% on luxury goods) under PMK 131/2024. PMK 90/2025 has the government pay the VAT on the first IDR 2 billion of a ready home priced up to IDR 5 billion, handed over in 2026 (Katadata). Ask the developer’s tax adviser whether a foreign buyer qualifies.

Worked example: a IDR 5 billion freehold villa sold to a Jakarta buyer

Item	Who pays	Amount
Price	Buyer	IDR 5,000,000,000
BPHTB: (5,000,000,000 minus 80,000,000) x 5%	Buyer	IDR 246,000,000
Seller’s final income tax: 2.5%	Seller	IDR 125,000,000
Agency commission: 5%	Seller	IDR 250,000,000
VAT on commission: 11%	Seller	IDR 27,500,000
Notary and PPAT at 0.75% (Global Investments: up to 1%)	Usually shared	IDR 37,500,000

The buyer needs about IDR 5.246 billion plus legal fees and a share of the notary. The seller receives about IDR 4.5975 billion before the notary share. The BPHTB threshold varies by regency, so the notary confirms the exact figure.

For the full money side, read Agent commission in Bali and Off-plan in Bali. Tax rules change, so check the official source before you act.