Why a reliable Bali property developer Matters

Finding a reliable Bali property developer can save you AUD $75K+. A reliable Bali property developer has verified licences and completed projects you can inspect. Working with a reliable Bali property developer protects your investment. Every reliable Bali property developer follows these 14 steps.

14-Step Developer Check (6-14 Weeks)

Step 1: Verify Registration (Wk 1)

Check NIB via OSS RBA. A reliable Bali property developer has PT PMA registered with BKPM.

Pitfall: CV firms not authorised for foreign transactions.

Step 2: Check IUJK Licence (Wk 1)

Confirm construction licence (K2/K3 = over AUD $500K projects).

Pitfall: Devs may borrow another company’s licence.

Step 3: Inspect 3 Past Projects (Wk 2)

Visit 3+ completed projects. Compare to renderings. Measure rooms.

Pitfall: Model units may differ from delivered units.

Step 4: Interview Past Buyers (Wk 2-3)

Call 3+ recent buyers. Ask about timeline, budget, after-sales.

Pitfall: Devs offer fake references. Verify via notary.

Step 5: Independent Notary (Wk 3)

Use own notary (AUD $500-$1,500). Reviews PPJB + land certificates.

Pitfall: Dev-aligned notaries miss encumbrances.

Step 6: Land Title Search (Wk 3-4)

Notary searches BPN records for disputes or mortgages.

Pitfall: Devs without title = unenforceable PPJB.

Step 7: Financial Statements (Wk 4)

Review audited financials. Operating on deposits = red flag.

Pitfall: >20% deposit before construction is a warning.

Step 8: Review PPJB (Wk 4-5)

Check: penalty (1-3%/month delay), materials, milestones.

Pitfall: "Reasonable timeframe" = unlimited delay.

Step 9: Engineering Assessment (Wk 5)

A reliable Bali property developer welcomes engineering checks. AUD $800-$2,500.

Pitfall: Many fail on foundation depth (min 1.2m).

Step 10: Verify Materials (Wk 5-6)

PPJB should specify brands. Verify matching materials on site.

Pitfall: Chinese tiles for Italian = common cost-cut.

Step 11: Zoning Compliance (Wk 6)

Check RTRW zoning. A reliable Bali property developer provides clearance upfront.

Pitfall: Rice paddy land needs IPPT or demolition risk.

Step 12: Unannounced Visit (Wk 6-7)

Visit different times. Check 8-10 workers, safety gear, materials.

Pitfall: Devs stage for scheduled visits.

Step 13: Milestones (Wk 7-8)

Pay per milestone: foundation, roof, rough-in, finishing. Max 20% deposit.

Pitfall: Avoid calendar-date payments.

Step 14: Register PPJB (Wk 8-14)

Notary registers PPJB with BPN. Protects against double sale.

Pitfall: Unregistered = no priority over later buyers.

Checklist

NIB verified
IUJK K2/K3
3 past projects
3 buyers called
Own notary
BPN search done
Financials reviewed
PPJB reviewed
Engineer engaged
Materials verified
Zoning cleared
Unannounced visits
Milestone payments
PPJB registered

Partner with Pertama Property for guided developer verification.

FAQ

Verify developer licence?

Check IUJK via OSS or ask for their NIB (Business ID).

Developer red flags?

No past projects, rush deposits, below-market prices, no notary.

Due diligence cost?

AUD $3,000-$8,000 for legal, inspection, and engineer.

What is a PPJB?

Binding sale agreement. Must be notarised with penalties.

Visit construction site?

Yes. Reputable devs encourage inspections.

Ext: OSS RBA | BKPM | ATO

Related: Due diligence | First investor | Notaris fees

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