In Indonesia especially Bali, the real estate industry has gained significant benefits. This is why many foreigners are trying to get into this profitable industry by setting up a real estate agency in Bali.
Over the past decade, the price and demand for property in Bali rose prominently. As of now, it is almost impossible to find a commercial property for rent for less than IDR 200 million a year.
But here’s the good news – in 2019, Bali’s property prices have become more stable than in other areas in Indonesia. Therefore, the prices haven’t risen or fallen dramatically for the past year.
For the most part, the surging property demand in Bali is propelled by tourism. According to a report from Bali Province Tourism Development Statistics, in 2019, the number of foreign arrivals at Bali’s International Airport reached 6,3 million and domestic visitors hit approximately 10 million.
Doing the calculation, you will immediately realise that Bali has a huge customer market for the real estate industry.
To profit from this ever-growing real estate business and register your real estate agency in Bali, you must make sure that you know the requirements.
In this article, we will put more emphasis on the licenses that you will need to get your business up and running.
Requirements for Starting a Real Estate Agency in Bali
Meeting certain requirements and obtaining business licenses are an inevitable part of starting your real estate agency in Bali.
In Indonesia, requirements may vary by state and province.
The specific business licenses and permits that are mandatory under the Indonesian Law are the following:
- Spatial Utilisation License
- Utilisation and Function Plan License
- Environmental Permit
- Location Permit
Spatial Utilisation License
This license permits real estate agents to use a particular space for space utilisation of spatial planning in Bali.
It is used to control space utilisation and create a systematic society space. For spatial utilisation in the special economic zone, you will need to prepare an RDTR.
Utilisation and Function Plan License
Another license is known as the Utilisation and Function Plan License. This license allows realtors to develop condominiums. You need to obtain this license from the city mayor.
You must also get an Environmental Permit to carry out your real estate business activities that have an adverse impact on the environment. These activities involve waste emission into the air or water.
Securing this environmental permit means that you will have a plan to counteract the waste and pollutant emission issues and a team of trained personnel for waste and pollutant control on-site.
Last but not least is the location permit. This permit makes it possible for foreigners to invest in the real estate sector. Foreigners can use the land under the location permit for business or investment purposes.
How Cekindo can Assist
While there are a lot of benefits for anyone intending to set up a real estate agency in Bali, like everywhere else in the world, there are still some considerations for investors.
Starting a real estate agency in Bali can prove to be a challenging process without the appropriate assistance from professionals.
Cekindo is a licensed business consulting firm in Indonesia serving as a one-stop center in all business aspects.
Our services include business license application, company registration, due diligence, outsourcing services and visa application. We enable a smooth and hassle-free settlement for you in Bali.
For additional information about how to set up a real estate agency in Bali, send us your inquiry today via the form below. Our helpful and supportive representative will get back to you soon.