BREIG: how to check if a Bali villa can be rented daily
Balinsky visited a BREIG villa construction site in Nusa Dua — the Edem complex. The main topic: which documents a villa needs so it can legally be rented out by the night.
The expert — Nikita Shelomentsev, BREIG.
The figures below come from the developer. Balinsky has not verified them.
Nikita says on camera that he is "not that much of a legal expert". Everything below is the developer's practice, not legal advice.
1. Not every villa can be rented daily
It all depends on the business activity code — the KBLI. According to Nikita, each code states exactly what is allowed. If the code is residential (housing to live in), you cannot rent daily. Monthly rentals are allowed.
2. No KBLI and OSS — no rentals
OSS is the system through which permits are issued under a KBLI code. Without OSS, a KBLI and documents, Nikita says, you will not be able to list a villa on Booking or Airbnb.
3. Which types allow daily rentals
According to Nikita, there are dozens of such codes. He named:
- Pondok Wisata — for Indonesian citizens only;
- Rumah Kos — budget guesthouses;
- Villa;
- Hotel Bintang and Hotel Non Bintang — a hotel with or without stars.
The hotel classification is now being changed: Bintang will come with different numbers of stars. According to Nikita, those permits are not being issued yet.
4. The code must match the land and the project
The licence number must suit the plot. To get a "villa" KBLI on yellow land, you submit the project. It is approved if it meets the requirements:
- built-up area — 50% of the plot or less;
- the required setbacks;
- a suitable number of rooms;
- infrastructure in place.
If you build apartments and ask for a "villa" KBLI, you may be refused: the project does not match the code.
5. Example: two parts of one complex
- One part — yellow land, a PBG and a "villa" KBLI.
- The other — pink land, where they applied for Hotel Bintang.
According to Balinsky data: Edem I is on yellow land (Residential), Edem II on pink land (Tourism).
Why was it not registered as a resort? According to Nikita, a resort KBLI can be obtained here. But at the time the consultant said: "You have villas — here is a villa KBLI." The government looks at the project and may reply that it "doesn't qualify as a resort".
6. How to check a villa before buying
- Find out the land colour (zone) of the plot.
- Ask for the KBLI number from the documents.
- Look up that number in OSS and see what it allows.
- Check that the code matches the land and what has actually been built.
- A residential code means monthly rentals only.
Important: in the Balinsky database, the yellow zone of Edem I is marked "for living and long-term rental". The developer's words and the database records are worth checking against the documents. Check your own case with a lawyer.
7. The complex in brief
- A 1-bedroom villa for two, a large pool, terrazzo floors.
- 5 minutes to the ocean.
- 3 minutes by electric car to the second part, then 4 minutes to the Kempinski.
- Its own infrastructure on about 2,000 m²: lobby, restaurant, kids' room. It is shared between the two parts.
- The format, according to Nikita, suits longer stays.
- A night in the financial model — $110–130 in different scenarios (Nikita quoted from memory).
- The 1-bedroom price — about $195,000 from Nikita's memory, $199,500 in the Balinsky database. The first off-plan sales, about a year and a half ago, started at $145–155k.
- For the terraced layout they built reinforced concrete retaining walls 4 m high. According to Nikita, they cost about as much as all the concrete.
The full interview (in Russian) is available via the video button below.
