How to Check a Developer in Bali: 12-Point Checklist
AB
Andrei Balinsky
Founder of Balinsky
Bali’s market is full of developers calling themselves “the best,” “reliable,” and “with European experience.” To tell a true professional from a fly-by-night company, go through this checklist.
1. Time operating in Bali
Premium reliability means 8+ years on the island with completed projects. Less than 3 years means a newcomer, with higher risk.
2. Number of completed properties
Ask for specific addresses. Go and inspect at least one of them yourself. The condition 2–3 years after completion is the key indicator.
3. PBG (building permit)
This is a document issued by the local administration. No PBG means no legal construction. Ask for a copy and verify the number on the SIMBG portal.
4. Project compliance with RDTR
Check the plot zoning code against the building type. If they are building a villa on agricultural land, it is a ticking time bomb (see the 2024 moratorium and the Bingin demolition in 2025).
5. Legal clarity of the land
Request the land ownership certificate (SHM or HGB) and ownership history. Any boundary disputes, encumbrances, or leases are grounds to walk away from the deal.
6. Contract with the investor
It should include: payment schedule, penalties for delayed completion, guarantees against an unfinished project, and a refund mechanism. If the developer refuses to include a delay penalty, that is a reason to think twice.
7. Payment schedule
A healthy structure is: 10–30% on signing, the rest by construction stages, and the final tranche upon key handover. If they ask for more than 50% upfront, that is a bad sign.
8. Management company
Who will rent out your villa? An external licensed management company or the developer itself? What are the fees? What occupancy have they achieved in past projects?
9. Financial return model
Ask for real figures from completed projects, not forecasts. ROI of 20% “guaranteed” on paper = either inflated, a short-term game, or fraud. For reference, Balinsky's own calculation puts a median two-bedroom villa at about 10% gross and about 5% net a year at 65% occupancy (September 2026).
10. Reputation in the community
Ask about the developer in broker chats and with several independent agents. Matching red flags from different people are a verdict.
11. Openness to meetings
Is the founder willing to meet you in person? Provide the contact of a past investor for a conversation? A closed, inaccessible company is high risk.
12. Behavior in a crisis
Ask for examples of how the developer acted in situations involving delays, disputes, or contractor problems. The best indicator is how they behave in an uncomfortable situation.
Real cases from 2024–2025: dozens of foreign investors lost money precisely because of violations under points 3, 4, 7, and 9. Do not rush.