Bali Off Script

You cannot own land in Bali.
Three legal routes say otherwise.

Leasehold, Hak Pakai, or HGB through a PT PMA. Everything else being sold to you is a nominee arrangement — void since 1960, and a criminal offence in Bali since February 2026.

Start here

Put the deal through this before you believe the yield.

Advertised Bali yields are gross — before platform commission, the 10% PB1, management, staff, refurbishment and tax. On a lease there is one more deduction nobody shows you: the premium, amortised over the years you actually get. Change any figure and every number and chart below updates.

What you are buying
What you are buying
Property type
How it earns
Capital in
Revenue
Costs

Do you get your money back?

Cumulative position across the term — you start at minus your capital, and the line is where you stand each year. Anything below zero at the end is a loss, whatever the yield said.

Where a year of revenue goes

The advertised yield is the whole bar. What reaches you is the last segment.

What the right itself is worth

A time-limited right depreciates towards its residual as the clock runs down. This is the cost nobody puts in the projection, and on a lease it ends at zero.

Read this before you sign anything

If the structure puts the land in an Indonesian person's name for you, it is void.

Nominee arrangements have been void since 1960 under UU 5/1960 Art. 26(2). Since Perda Bali 4/2026 they are also a criminal matter, and facilitating one is prohibited in its own right. Regional authorities can suspend operations and close premises directly.

It is still the most commonly sold structure in Bali. Here is exactly what happens when it unwinds.

Start here

Kai, Bali property adviser

I'm Kai.

I advise on property in Bali, and I'm on the ground here. This site exists because the honest answers to these questions are not what gets published — the market runs on optimism, and buyers find out afterwards. Everything here carries the regulation it comes from and the date I last checked it.

If you're looking at something specific, send it to me. I'll tell you what I'd check first.

@balioffscript
Kai, Bali property adviser

Got a specific situation?

Every deal in Bali has a detail that breaks the general rule. Send me the details and I'll tell you what I'd check first.

Kai — Bali property adviser

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