What Is the Issue in Bali?

In Indonesia, every building must have an approved building permit (formerly IMB, now called PBG – Persetujuan Bangunan Gedung) before construction begins.

However, in Bali it is increasingly common to find villas that:

• Were built without a PBG

• Do not match the approved building plan

• Are located in zones not permitted for villa or tourism use

• Were approved as private residences but are operated as commercial rentals

• Lack proper tourism and operational licenses

Many of these villas appear fully completed and operational, which can give buyers a false sense of security.

Why Did This Happen?

Several factors contributed to this situation:

1. Rapid Development Pressure

High demand pushed construction faster than regulation enforcement, especially in popular areas such as Canggu, Uluwatu, and Ubud.

2. Poor Legal Advice

Some investors relied on unverified agents or contractors who downplayed the importance of permits or promised to “handle it later”.

3. Zoning Violations

Certain land zones in Bali do not allow commercial accommodation, yet villas were still built and marketed as rental properties.

4. Misunderstanding Indonesian Law

Owning land or a building does not automatically make it legal to rent or operate. Ownership, construction approval, and business operation are separate legal matters.

Why This Is a Serious Risk for Investors

If a villa does not comply with regulations, owners may face:

• Construction stop orders

• Fines and penalties

• Forced closure of rental operations

• Difficulty selling the property

• In extreme cases, demolition

More importantly, these risks usually surface later, after money has already been invested.

Is This Only a Bali Problem?

No — but Bali has become the most visible example due to its scale and strict enforcement.

The key lesson is not “avoid Bali”, but rather:

Never invest without full legal verification, regardless of location.

This applies equally to Lombok, Sumbawa, Java, or any developing tourism area.

How We Ensure This Will NOT Happen to You in Lombok

At Properties Lombok, we built our service specifically to prevent these problems.

1. Verified Zoning Before Any Sale

We only offer land and property in zones that legally allow:

• Residential villas

• Commercial accommodation (where applicable)

• Future development and licensing

No zoning shortcuts. No assumptions.

2. Permit-First Approach

We ensure that:

• PBG (building approval) is secured before construction

• Building plans comply with local regulations

• The approved design matches what is actually built

No “build now, fix later” approach.

3. Clear Separation of Use

We clearly explain whether a property is:

• For private use

• For commercial rental

• Or structured for future conversion

And we guide you through the correct legal structure for each option.

4. Local Due Diligence, Not Guesswork

Our team works on the ground in Lombok with:

• Local authorities

• Notaries

• Surveyors

• Legal consultants

This reduces risk and ensures compliance from day one.

5. Long-Term Investment Protection

A legally compliant property:

• Is safer to operate

• Is easier to sell

• Holds value better

• Protects you from sudden regulation changes

This is especially important for foreign buyers.

Final Thoughts for Property Investors

The situation in Bali is a clear warning, not a reason to panic.

The real takeaway is simple:

Property investment in Indonesia must be done correctly from the start.

Shortcuts may look attractive, but they often become expensive problems later.

Invest With Confidence in Lombok

If you are considering buying land or building a villa in Lombok, we are here to help you do it legally, transparently, and safely.

Contact Properties Lombok to:

• View verified land opportunities

• Understand zoning and permit requirements

• Invest with confidence and peace of mind

📩 Talk to our team today and avoid the mistakes others are now paying for.