Navigating real estate regulations in Bali can be challenging but is crucial, especially given the unique cultural, legal, and environmental landscape.
Over the past 19 years, we have developed our expertise through the delivery of over 500 completed units—ranging from boutique villas to large-scale hospitality projects—and currently have more than 1,000 units under construction.
Success within Indonesia real estate is predicated on compliance with local customs and regulations, zoning laws, and permit requirements. This article aims to walk you through some key regulatory considerations throughout the development process to ensure a project meets the necessary criteria.
Design Phase
From the outset, design is never just about aesthetics. Our in-house team of designers, architects, and project managers collaborates to create spaces that complement Bali’s cultural identity while also catering to global standards of luxury and comfort. The design process is where critical legal compliance begins:
Project Compliance Essentials
Before embarking on concept planning, we confirm that all core project essentials are properly aligned with local regulations and standards. We operate under a framework that strictly adheres to Indonesia’s latest legal requirements, ensuring every aspect of our business activities remains fully compliant. These foundational elements demonstrate that we have satisfied all statutory obligations, including:
- Deed of Establishment – Prepared by a notary and legalized by the Ministry of Law and Human Rights of the Republic of Indonesia;
- Legal Entity Approval Decree – A decree issued by the Ministry of Law and Human Rights confirming that our company has been legally established as a corporate entity;
- Business Identification Number (NIB) – The company’s primary identity issued through OSS, serving as the basis for obtaining permits both in the pre-operational and operational stages;
- Corporate Taxpayer Identification Number (NPWP) – Proof of tax compliance registered with the Directorate General of Taxes;
- VAT-Registered Taxpayer (PKP) (if applicable) – Our company complies with all tax regulations and has been designated as a VAT-Registered Taxpayer (PKP) for Value Added Tax (VAT) purposes.
- Compliance with Other Regulations – Such as tax reporting, labor regulations (BPJS), and other sector-specific permits.
By fulfilling these Standard Operating Procedures (SOPs), we demonstrate that our company is not only legally recognized but also fully authorized to conduct business in accordance with government regulations and industry best practices.
Land Ownership Certification
A key step in compliance, we ensure the land’s ownership status meets the requirements for the projects. Depending on a project’s legal setup—whether it’s Indonesian-owned, foreign-owned under a PT PMA, or a joint venture—documentation must align with Indonesian regulations.
Ensure compliance with local laws from the outset ensures your investment is protected over the long term, without any unexpected issues.
Building Permits (IMB/PBG)
Known as IMB (Izin Mendirikan Bangunan) or soon transitioning to the PBG (Persetujuan Bangunan Gedung), is a crucial building permit required for all construction works. These permits are crucial as they verify a project’s adherence to safety, structural, and zoning guidelines, reviewing technical and administrative documents of a project before construction is permitted. At Mirah, we stay updated on the latest requirements to ensure each phase of construction is fully compliant.
Zoning Compliance
Bali has strict zoning rules that safeguard the environment and preserve cultural heritage sites. Our team conducts a thorough land-use assessment to confirm that land plot falls under the correct zoning category—whether it be residential, tourism, or mixed use—before any design work commences. This ensures alignment with local government regulations and protection of environmental and heritage sites.
Community Alignment (Banjar Meetings)
Before any development begins, we engage with village leaders—known as the Banjar—to understand community standards and cultural protocols. Obtaining local approval at this stage not only preserves positive relationships and ensures cultural preservation, but helps projects run smoothly by addressing any potential issues early.
Environmental Impact Assessments
Indonesia requires developers to conduct environmental assessments—AMDAL for larger projects or UKL/UPL for smaller-scale ventures. Proactively looking at key factors such as water usage, waste management, and traffic flow, we minimise effect on Bali’s ecology during construction and help to assure guest and local community satisfactions once projects are completed and operating.
Construction Phase
Once our development projects move into the building phase, priority shifts to efficient execution without compromising on quality or compliance. We employ a network of trusted suppliers, with strong partnership with international contractors such as TATA– working in tandem with in-house project managers bringing local and international expertise to our construction.
Contractor Coordination
Whether partnering with renowned firms like TATA or other specialist contractors, our in-house project managers ensure the workforce follows both international standards and local norms. This blend of cultures and expertise elevates the end result.
TATA (PT. Tatamulia Nusatara Indah) excels in a wide range of projects, including constructing key Bali projects such as Garuda Wisnu Kencana Cultural Park, The Ritz Carlton Bali, Samasta Moevenpick Hotel & Resort, and much more.
Logistics & Traffic Management
Construction in Bali often involves navigating narrow roads and high-traffic tourist areas. We work closely to chart out material delivery routes, schedule construction activities to minimise disruptions to local communities.
Safety Compliance
Workplace safety is paramount. We adhere to Indonesian labour laws and occupational health regulations, ensuring that every site is equipped with adequate safety measures—ranging from signage and personal protective equipment to fire-safety protocols. Regular inspections and training sessions keep our teams aligned with best practices.
Operational Phase
For hotel or commercial projects, obtaining the appropriate operating license is just as important as securing the correct building permit. Business operation licenses depend on the nature of the business—whether it is a hotel, resort, restaurant, or a specialized business such as a fitness centre.
Business Operating Licenses
Tourism-related operating permits, previously known as TDUP (Tourism Business Registration Certificate), have now been integrated into the Online Single Submission (OSS) system, which streamlines the licensing process for various business sectors, including restaurants, villas, bars, and many other tourism-related fields.
Human Resources & Visa Regulations
In Indonesia, both local and foreign workers come with unique regulatory requirements. Our team ensures that expatriate staff obtain the correct work permits (like KITAS) and that local employees receive contracts in line with Indonesian labour laws.
For Clients
Our in-house legal and tax consultants work with each client to structure ownership in a way that is both secure and efficient. Whether you’re an individual investor or a multinational brand, we streamline everything from forming a PT PMA to registering the necessary tax IDs (NPWP) and other requirements.
Bali’s enchanting landscape and vibrant culture offer unique opportunities for real estate development. Yet the region’s regulations, coupled with local customs, call for a grounded, methodical approach.
With over 19 years of experience and many successful projects, we’ve honed a process that integrates impeccable design, diligent permit acquisition, robust construction practices, and sound operational planning. By focusing on compliance at every stage—from initial community outreach to final operating licenses—we help ensure that our projects are not just visually stunning but also legally secure and culturally respectful.
About Mirah Investment & Development
As Bali’s leading property developer , Mirah Investment & Development are well established as the market leader with years of experience in bringing luxury developments to the most sought-after locations across the Indonesian archipelago. An extensive in-house team of locals and expatriates offer end-to-end services from architecture and design to professional property management as well as legal, taxation and immigration support.
