As a result of the property boom in Bali and other Indonesian islands, the land and building department has implemented some regional regulations.
The time when investors could build on any available land has now passed; the regulations are now extremely strict in most of the regions in Bali, including the Badung area.
Regional and Spatial Planning (RTRW) regulations have a legal duration of 20 years. The recent RTRW regulations of Badung have been ratified to replace the older version ratified back in 1995. Its effective period is from 2013 until 2033. As a result of the new regulations, it is important to consider the following points:
– Check the zoning / ITR (Ijin Tata Ruang) before buying land for any project
– Check if the zoning will allow different types of building permits & licenses (IMB – Izin Mendirikan Bangunan) for either commercial or residential purposes
Of the various zoning types, there are 4 primary types of zoning that will pertain to most purchases:
1) Government owned land
2) Residential zoning
3) Commercial & tourism zoning
4) Agricultural zoning (green zone)
1) Government owned land
There is government owned land everywhere and it is restricted to individual investors only. They include beaches, natural reserves, forests, and so on.
2) Residential zoning
The residential zoning, as the name implies, is granted for residential properties such as houses or villas as a residence only. It is possible to apply for different building licenses suitable for a house, villa, apartment (or kost), and even some commercial licenses that are permitted within residentially zoned areas.
3) Commercial & tourism zoning
This zoning is granted for any commercial purpose, which includes hotels, resorts, condotels, apartments, entertainment parks, as well as any residential properties. It is possible to apply for a commercial license and for a Pondok Wisata, which allows for holiday rental.
4) Agricultural zoning (green zone)
Agricultural is only for farming. Residential or commercial buildings are strictly prohibited. No building permits will be issued for houses, villas, and so on.
