Field notes

Building, funding and operating in Bali — the numbers, briefly.

Short, data-led notes from the market we work in. Information only.

CostsUSD 600–2,000per m² by spec, 2026How much does it cost to build a villa in Bali in 2026?Expect to pay roughly USD 600–900 per square metre for a small one- or two-bedroom villa, USD 800–1,300 for a family villa, and USD 1,400–2,000 for a high-end, architect-designed home — before you add the land.Read → Market data74%hotel occupancy, 2025How did Bali hotels perform in 2025?Bali hotels filled about 74% of their rooms in 2025 at an average of USD 150 (IDR 2.35 million) a night, which works out at about USD 111 for every room available, booked or not.Read → Permits6regencies with a farmland pauseCan you still build in Bali after the 2026 permit restrictions?Yes, on correctly zoned land. As reported in 2026, new tourism construction on farmland is paused across six regencies, but Badung, Gianyar and Denpasar continue to issue permits on zoned land, Special Economic Zones run their own rules, and projects that already hold a valid PBG may keep building.Read →

Market data 5

Market data74%hotel occupancy, 2025How did Bali hotels perform in 2025?Bali hotels filled about 74% of their rooms in 2025 at an average of USD 150 (IDR 2.35 million) a night, which works out at about USD 111 for every room available, booked or not.Read → Market dataIDR 4.8MJimbaran–Uluwatu ADR, 2025Which areas of Bali have the highest hotel occupancy and room rates?Nusa Dua was the fullest area in 2025 at about 79% occupancy, with Legian and Kuta close behind, while Jimbaran and Uluwatu charged the most at an average of about IDR 4.8 million a night, followed by Ubud at IDR 3.6 million.Read → Market data5,641rooms in the pipeline, 2026–28Is Bali overbuilt? What does the hotel pipeline show?Not across the whole island, but in places and at the top of the market.Read → Market data6.95Minternational arrivals, 2025Is demand in Bali real, or driven by speculation?The underlying demand is real. Bali had a record 6.95 million international arrivals in 2025, up about 10%, with hotels near 74% occupancy and a growing base of long-stay residents, families and patients.Read → Market dataYearsof occupancy, not nightsIs there demand for long-term rental housing in Bali?Yes, and there are not enough good homes to meet it. Relocating families, remote workers and the staff of new businesses look for well-built homes on proper leases, but short-let villas are priced for tourists and many local builds fall short on quality.Read →

Costs 4

CostsUSD 600–2,000per m² by spec, 2026How much does it cost to build a villa in Bali in 2026?Expect to pay roughly USD 600–900 per square metre for a small one- or two-bedroom villa, USD 800–1,300 for a family villa, and USD 1,400–2,000 for a high-end, architect-designed home — before you add the land.Read → CostsIDR 31Mper are per year, at USD 200 ADRHow much should you pay for land in Bali?Work backwards from what the finished rooms can earn. In an illustrative example — USD 200 a night at 65% occupancy, a typical operating margin and build cost — the land can carry about IDR 31 million per are (100 m²) per year on a 27-year lease, which is already the asking level in Canggu and Pererenan.Read → CostsYear 2when shortcuts showWhy do poorly built villas in Bali lose guests and tenants?Because the failures guests notice are basic and show up quickly: water storage too small for the dry season, poor ventilation that breeds mould in the wet season, and fittings that fail within a year.Read → Costs5%typical retention, IndonesiaWhat happens if my contractor walks off a Bali build?The build stops, and finishing it almost always costs more than the money left in the original contract, because a new contractor prices the restart, the risk of taking over someone else’s work, and today’s material costs.Read →

Permits 3

Permits5 layerszoning to operating licenceWhat permits do you need to build and run a business in Bali?In order: confirm the zoning, register the company’s KBLI business codes and NIB business number through the OSS online system, get a PBG building approval before you build, get an SLF certificate once the building is finished, then the operating licences — with quarterly LKPM reports for foreign-owned companies.Read → Permits6regencies with a farmland pauseCan you still build in Bali after the 2026 permit restrictions?Yes, on correctly zoned land. As reported in 2026, new tourism construction on farmland is paused across six regencies, but Badung, Gianyar and Denpasar continue to issue permits on zoned land, Special Economic Zones run their own rules, and projects that already hold a valid PBG may keep building.Read → Permits18categories closed to new PT PMAsWhat businesses can foreigners still open in Bali in 2026?As reported in 2026, new foreign-owned (PT PMA) company registrations are blocked in 18 everyday categories in Bali — including cafés and bars, villa rentals, hotels under 6,000 m², gyms, retail and consultancies — while existing licences continue.Read →

Structures 4

Structures25–30 yrstypical foreign-held leaseLeasehold or freehold in Bali: how does it change the numbers?A leasehold counts down; freehold does not. Most foreign-held Bali villas sit on 25–30 year leases, so part of each year’s “return” is the holder’s own money coming back before the land reverts, and the same headline yield is worth much less on a lease than on freehold.Read → Structures~80 yrsHGB through a PT PMAHow can foreigners hold property in Bali for the long term?Most serious projects use a PT PMA — a foreign-owned Indonesian company — holding Hak Guna Bangunan (HGB) building rights that can run to about 80 years in total, long enough to build, operate and sell.Read → Structures15 June 2026KBLI 2025 live on OSSWhat is a KBLI code, and what happens if my Bali business has the wrong one?A KBLI code is the five-digit Indonesian business classification registered against your company’s business number (NIB) in the government’s OSS licensing system, and it decides what your company is legally allowed to do, whether foreigners may own it, and which licences it needs.Read → StructuresIDR 2.5bnminimum paid-up capitalHow much does it cost to set up a PT PMA in Bali, and what is the minimum capital?Since October 2025, a PT PMA needs at least IDR 2.5 billion (≈ USD 150,000) of paid-up capital, down from IDR 10 billion, and still needs an investment plan above IDR 10 billion (≈ USD 600,000) per business code.Read →

Funding 9

Funding4 layersof capital in every projectHow is a Bali development project usually funded?In four layers, in order: the owner’s equity buys the land and starts the build; build finance pays for construction in stages; completion capital closes the gap at the end, when the equity is spent and the doors are not yet open; and operating cash carries the first months of trading.Read → FundingStage by stagechecked before each releaseWhy is development capital released in stages?Because it ties money to proven progress. Each release follows a completed, independently checked stage of the build; if a stage slips, the next release pauses; and on projects that sell units, the balance can step down as sales complete.Read → Funding~40%sold — then the money stoppedWhat happens to a Bali development when off-plan pre-sales slow down?The developer still owes every buyer a finished unit by a set date, but the money to build it stops arriving.Read → Funding~USD 30ka month, idle near completionWhat does completion capital look like in practice?Short-term, secured capital, released in stages against checked progress, sized to finish a nearly complete project and stepping down as it opens and earns.Read → Funding6questions decide most fundingWhat do capital providers look for before funding a Bali project?Six things: the real cost to finish from today, a completed value clearly above total cost, two credible exit routes on a long enough tenure, clean security over the land, building and company, a sponsor with a track record and their own money still in, and evidence of demand rather than hope.Read → Funding1 → 2the hardest stepWhy do successful operators struggle to open a second location?Because the second site needs everything at once — premises, fit-out, equipment, staff and several months of running costs — long before it earns, while the first site’s cash is busy running the first site.Read → Funding2 routessell, or refinanceHow do developers get their money back out of a finished Bali asset?There are two routes: sell the asset once it is built, open and earning, or refinance against its proven income to take your original money out while keeping ownership.Read → FundingLast 10%where projects stallWhat is the completion gap in a development project?It is the amount of money needed to take a project from where it stands today — equity spent, build finance drawn, doors still shut — to its first paying guest.Read → FundingNo escrowrequired for leasehold villasWhat happens to off-plan buyers if a Bali developer runs out of money?Usually the project stops, handover is delayed, and buyers hold a contract claim against the developer rather than a finished villa — because, for most foreign leasehold villa sales in Bali, there is no mandatory escrow or government registration of off-plan sales.Read →

Operations 7

Operations3×July vs February RevPARHow much does Bali’s low season affect hotel and villa revenue?A great deal: in 2025 a Bali hotel room earned about IDR 2.4 million (≈ USD 147) a night in July against about IDR 783,000 (≈ USD 48) in February, roughly a threefold swing.Read → OperationsUSD 18–38owner keeps per USD 100What are the running costs of a villa in Bali, and how much does the owner keep?As an illustration, of every USD 100 a villa earns, booking platforms take about USD 18, staff and service about USD 22, utilities and upkeep about USD 12, and hospitality tax and admin about USD 10.Read → Operations8–15properties in a real comp setHow do you work out what a Bali villa or hotel can really charge?From what genuinely comparable properties already achieve. Build a competitive set of 8–15 places a guest would realistically choose between, match them on location, finish, size and amenities, be honest about your tier, and use the rates they achieve across the seasons rather than their top advertised price.Read → Operations25–35%brand rate premiumShould a Bali hotel or villa use a brand or operate independently?It depends on whether the higher room rate a brand brings is bigger than the fees it charges.Read → Operations6monthly asks of an operatorWhat should a hotel or villa owner ask their operator for every month?Ask for six things every month: the accounts in USALI format against budget; gross operating profit and margin, not just occupancy; where bookings came from and what each channel cost; payroll and energy as a share of revenue; repeat guests and review scores; and what the operator will change next month.Read → Operations15–25%lost per platform bookingHow can a small Bali hotel or villa earn more per room?Watch revenue per available room rather than how full you are, price by the day rather than the season, offer lower rates only with conditions attached, move guests from booking platforms to direct booking, and reward longer stays.Read → Operations~0availability, best-run themed villasHow can you tell a villa concept has real demand?Look at the booking calendar, not the brochure. The best-run themed villas — built around one specific kind of guest, such as families, with the layout and amenities to match — show almost no availability: booked months ahead, with returning guests and a waitlist.Read →

Areas & sectors 6

Areas & sectors100%foreign ownership, open sectorsWhich businesses can foreigners own 100% in Indonesia?Since Presidential Regulation 10 of 2021, any sector that is not specifically restricted is open to 100% foreign ownership through a PT PMA (a foreign-owned Indonesian company), with a minimum investment of about IDR 10 billion (≈ USD 600,000) per business line.Read → Areas & sectors184franchise outlets per millionHow developed is franchising in Indonesia compared with the rest of Asia?Franchising in Indonesia is still early-stage: there are about 184 franchise outlets per million people, against roughly 1,000 in the Philippines, 2,050 in Japan and 7,300 in South Korea — even though the Philippines has lower income per head.Read → Areas & sectors6–12 monthsbefore a new clinic fillsHow can a clinic in Bali fund a second location without selling shares?By funding the second site against the proof of the first, rather than selling shares.Read → Areas & sectorsUSD 12–490per m², east of BaliHow do land prices and demand in Lombok, Sumba and Sumbawa compare with Bali?Land is much cheaper east of Bali — from about USD 12–75 per m² on Sumbawa’s surf coast to USD 185–490 per m² in Lombok’s Mandalika core — but demand is far thinner and remote builds cost more.Read → Areas & sectors498 hazone, planned to 2052What is the Kura Kura Bali Special Economic Zone, and what is built so far?Kura Kura Bali is a 498-hectare island development about 20 minutes from Sanur, designated a Special Economic Zone in 2023 under Government Regulation 23 of 2023, with a master plan running to 2052.Read → Areas & sectors255 bedsBali International HospitalWhat is the Sanur health zone, and what businesses grow around it?It is a 41-hectare health and tourism Special Economic Zone in Sanur, anchored by the Bali International Hospital, which opened in June 2025 with 255 beds and is run by IHC, Indonesia’s state hospital group.Read →

Reading the numbers 2

Reading the numbers12% → ~6%advertised vs net, illustrativeIs a 12% rental yield on a Bali villa realistic?Usually not as advertised. A quoted 12% is normally a gross yield — the rent divided by the price, before any costs.Read → Reading the numbers12%often funded from the priceHow should you read a guaranteed rental return on a Bali villa?Value the unit as if the guarantee did not exist. A guaranteed return for the first few years is often funded from the sale price itself — the unit is marked up and part of the buyer’s own money is paid back as “income” — and when it ends, the villa has to earn from its real net operating income on a shorter remaining lease.Read →

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