Why a lease needs more checking than a purchase
With a lease, the contract is the asset. You are not buying a registered title; you are buying a promise from the landowner — and from the landowner’s heirs — that you can use the land for a period on agreed terms. If the land, the owner or the contract has a problem, the value of your investment has the same problem.
1. The certificate
- Ask to see the original certificate before any deposit.
- Have the notary or land-deed official (PPAT) check it at the land office (BPN): authenticity, registration, the right type (Hak Milik, HGB, Hak Pakai) and any notes on it.
- Match the certificate to the plot on the ground: location, boundaries and size.
2. The owner — and the family
- Identity card and family card of the owner.
- If the land was inherited: all heirs, and their written consent. One family member signing for land owned by several heirs is one of the most common sources of later disputes.
- If the land is marital property: the spouse’s consent.
- Any existing leases or agreements on the same land.
3. Zoning and land status
- The zone code in the regency’s detailed spatial plan (RDTR) and whether your intended use is permitted.
- Whether the plot is protected agricultural land (LP2B) or a standard rice field: since December 2025 converting these is prohibited in Bali.
- Whether it is productive land affected by the restrictions on conversion for villas and hotels announced in September 2025 and regulated by Regional Regulation 4 of 2026.
- Setbacks: at least 100 m from the highest tide line on the coast, plus river and ravine setbacks inland.
More detail in land and zoning checks in Bali.
4. Access and utilities
- Legal road access — a registered road or a written right of way. An informal path over a neighbour’s land is not access.
- Electricity capacity and connection route.
- Water source and drainage.
5. Encumbrances and tax
- Mortgages (Hak Tanggungan), blocks or court seizures on the certificate.
- Pending disputes — ask locally as well as on paper.
- Land and building tax (PBB) paid up to date.
6. The lease clauses that decide its value
| Clause | What to look for |
|---|---|
| Term | Long enough for your plan and exit |
| Extension | A price or a formula agreed now, not “to be negotiated” |
| Heirs | Obligation of heirs and successors to honour the lease |
| Use | Right to build, renovate and operate the intended business |
| Sub-lease / transfer | Right to sub-lease or assign, needed for resale |
| Payments | Linked to documents (verified title, signed deed), not only dates |
| End of term | What happens to the buildings |
| Disputes | Governing law, forum and language of the deed |
7. Who signs, and before whom
The lease is normally made by notarial deed. Make sure you understand the Indonesian text that will be signed, not only a translation, and that the deed matches what was negotiated.
Red flags
- Pressure to pay a deposit “to hold the land” before documents are shown.
- “The zoning will be changed.”
- No certificate yet — “it is being processed.”
- A price far below neighbouring plots without a clear reason.
- A seller who offers to put the land in someone else’s name for you.
Where ICM fits
We coordinate the notary check, verify zoning, access and the family situation on the ground, review the lease terms and tell you in writing whether we would proceed. See property due diligence in Bali.
General information as of the review date. It is not legal advice; confirm the position for your specific plot with your notary or lawyer.