Is Your Bali Property in the Right Zoning?

If you're considering building a villa or investing in a property with stunning views in Bali, it's important to make sure that your property is on the right zoning. Understanding land zoning in Bali is essential as it dictates what you can and cannot build on a particular piece of land, especially if you plan to build a Bali villa for rental investment. In this article, we will explore the different land zoning categories in Bali and help you to know more before purchasing your property.

 

Land Zoning in Bali

 

The Department of Public Work (Dinas Pekerjaan Umum/PU) is responsible for managing land zoning in Bali and Indonesia. The local government will be further involved to regulate the details on the zoning, as each area in Indonesia and Bali in particular have its own needs and relevance in order to accommodate the local culture and customs. 

 

The zoning system classifies land based on its intended use and purpose, with each zoning further specified into subzone. In Bali real estate market, it is essential to familiarize yourself with five primary zoning. We will refer some of the zoning regulations to Badung local regulation as a general guideline for this article, but note that the regulations have local variations that could be vastly different from one region to another.

 

Trade and Services Zoning/Perdagangan dan Jasa (K)

 

Land within this zoning is designated for commercial areas, allowing you to establish businesses such as restaurants, cafes, or retail shops. The subzoning on this zoning is divided into three, based on the type of road the building is located on.

 

A strategic streetfront land within the Commercial Zone of Seminyak.

Photo by Bali Home Immo

 

The first subzone is the Urban Scale Trade and Service Subzone (K-1), located alongside the protocol, provincial, or regency roads, and serves on a regional or international scale. This subzone usually permits the construction of accommodation buildings like hotels and villas. In contrast, Planning Region-Scale Trade and Service Subzone (K-2) and Sub-Planning Region-Scale Trade and Service Subzone (K-3) have more limitations on tourist accommodation buildings, as they are intended to serve smaller areas along secondary artery roads. Again, it might differ in various areas.

 

Tourism Zoning/Pariwisata (W)

 

The "W" in Pariwisata stands for "wisata," which translates to tourism. This zoning category is specifically designated for the development of natural, artificial, and cultural tourist attractions. Within this zoning, you have the opportunity to build and operate businesses catering to tourism, such as accommodations for tourists, making it ideal for constructing hotels, villas, guest houses, and more. Additionally, you can establish commercial spaces that support tourism purposes, such as restaurants, bars, beach clubs, and similar establishments.

 

Stunning Boho Villa in Batu Bolong.

Photo by Bali Home Immo

 

The tourism zone is further divided into two subzones based on land utilization intensity, which refers to the portion of the building size compared to the total land owned. These two subzones are the Natural Tourism Subzone and the Artificial Tourism Subzone.

 

Mixed Zoning/Campuran (C)

 

The Mixed Zone or zona campuran is an area developed to accommodate various combinations of functions, such as housing and trade/services, housing and offices, trade/services offices, housing and tourism, or agriculture and tourism, among others. Within the mixed zone, there is a specific derivative called the Housing and Trade/Services Subzone. This subzone is designed to integrate multiple functions, particularly housing and trade/services, with a focus on providing tourism services.

 

Properties within the Mixed Zone enjoy close proximity to daily amenities.

Photo by Bali Home Immo

 

In this zoning, you have the flexibility to build either residential houses or commercial properties. Many property owners choose to construct ruko or shophouses, combining residential and commercial spaces within a single building. Alternatively, some opt for complexes with separate areas for residential and commercial use, offering convenience to residents.

 

Residential Zoning/Perumahan (R)

 

The Residential Zone,or Zona Perumahan, is an allocated space designed to accommodate residential houses and provide facilities for community living and livelihood. In general, there are very limited options to build tourism purpose accommodation in a residential zoning, though some areas might have different regulations. 

 

Like in Kuta Utara (Canggu, Umalas, etc) area of Badung regency, you may build a Pondok Wisata in all three subzones, but subject to limitations on another area like Kuta Selatan (Bukit Peninsula). What’s included as Pondok Wisata are businesses that provide lodging services that are rented out on a daily basis, owned by individuals, using either a part or the entirety of their residential space. It includes businesses that offer accommodations for homestays and guesthouses. 

 

Residential zones often provide a calmer vibes.

Photo from Bali Home Immo

 

There are three subzones within this residential zone, specified based on its density. The first one is the high density housing subzone, it is a designated area for residences with a large number of house buildings and a density of more than 60 - 100 houses per hectare.

 

The medium density housing subzone provides a balanced ratio between the number of house buildings and land area, with a density of over 25-60 houses per hectare.

 

The low density housing subzone offers dwellings or residences with a small ratio of house buildings to land area, with a density of below 25 houses per hectare.

 

Agriculture Zoning/Pertanian (P)

 

The green zoning is dedicated to agricultural activities that includes irrigated wetlands, tidal swamps and lebak and non-irrigated wetlands and drylands which are potential for food crop utilization and development. 

 

Properties that border the Agriculture Zone are always high in demand.

Photo by Bali Home Immo

 

In agricultural zoning, regulations generally will only allow 20% of your owned land for building purposes. Due to this limitation, you'll notice that there are very few constructions within this zoning category that have valid building permits. As a result, areas bordering these zones, usually with their picturesque rice fields, are highly sought after by investors due to their scarcity.

 

In which zoning can I build a villa?

 

To reiterate our basic rules, each zoning category dictates what you can and cannot do with your property. If you plan to build a villa, consider your purpose. Is it intended solely as a long-term residence, or do you plan to rent it out in the future? If it's the latter, ensure that the zoning allows for tourism accommodations.

 

Fortunately, most zoning in Bali offers more flexibility than other areas in Indonesia when it comes to building and operating accommodation businesses. The most desirable zoning for building villas and similar rental accommodations is the tourism zoning, typically situated near popular tourist attractions, ensuring a high occupancy rate. The second-best option would be the Trade and Service Zoning, especially the Urban-Scale Subzone, with its main road locations. Next in line is the Mixed Zoning, as it permits both commercial and tourism accommodations, providing access to various amenities. Lastly, the Residential Zoning has more restrictions compared to the previously mentioned zonings when it comes to tourism accommodations, and it generally only allows for a Pondok Wisata.  

 

How to Check the Land Zoning in Your Area

 

To find out the zoning status of a specific area, you can directly inquire at the local Public Works (PU) office.  It is even better to consult with a legal team that is well-versed in all the regulations concerning properties in Bali. Bali Home Immo can help you to get connected with our trusted legal partner to consult about your property’s zoning.

 

By familiarizing yourself with Bali's land zoning regulations, you can make informed decisions and avoid any potential pitfalls that could impede your investment plans.

 

Disclaimer:

The information provided in this article is intended for informational purposes only and should not be considered as professional legal or financial advice. Bali Home Immo does not assume any responsibility or liability for the accuracy, completeness, or suitability of the information presented herein. Readers are advised to seek the advice of qualified professionals, such as lawyers or notaries, for specific and up-to-date guidance regarding land zoning regulations in Bali. Any reliance on the information provided in this article is at the reader's own risk. Bali Home Immo shall not be held liable for any damages, losses, or consequences resulting from the use of the information contained in this article. It is essential to conduct thorough research and consult with relevant authorities before making any property-related decisions in Bali.