This strategy covers four properties in Bali. Each property has different risks and needs different actions. The document explains what to do, why, and in what order.
All names, addresses, and document numbers have been removed for privacy. Role labels are used instead:
There are several supporting documents that go with this strategy. They are described at the end. There is also a glossary of terms at the very end.
Each property needs the lightest structure that works. A PT PMA costs IDR 50-100M to set up, requires IDR 2.5B paid-up capital, and IDR 20-50M/year in ongoing compliance. That is the wrong tool for small properties. The right tool is a simple lease between a landlord and an Indonesian operator. Simple structures are cheaper, faster, and harder to challenge.
This is the most important principle.
When Indonesian authorities examine a foreign-linked accommodation business, they do not start with the legal documents. They start with money:
An inspector visits the property or checks the records. She sees the NIB, checks it against the OTA listing, looks at the PHR filings. If those three things match — the same Indonesian person is the registered operator, is listed on the OTA, and is declaring hotel tax that makes sense for the property's bookings — the examination is over. There is no reason to dig further.
If those things do not align, the inspector goes deeper. She looks at the lease, the ownership chain, the money flow. That is when nominee risk becomes a real problem rather than a theoretical one.
How money flows from the property to the owners is different for each property. The details are explained in each property section. The general principle is: the structure must be simple, the Indonesian operator must be the visible business on the ground, and the money that reaches the owners must be explainable as rent from an Indonesian property.
Go to a lawyer or notary with specific instructions. Tell them what you want. Do not ask "what should I do?" — that is how a simple sub-lease turns into a PT PMA proposal. Most of what is needed here is standard notarial work.
Two properties in Kabupaten Badung with different Indonesian operators could create a visible pattern. Current natural differences are sufficient: different operators, different KBLI codes, different use types, different partner groups.
Instead of a direct lease from [Owner] (foreigner) to the operator, all properties use a two-layer structure:
Lease B is Indonesian-to-Indonesian. No foreign passport is visible. No PPh 26 question arises. No nominee signal. If an inspector asks the operator to show their lease, they produce Lease B — a straightforward agreement between two Indonesian individuals.
The [Trusted Indonesian Senior] is a pass-through on a 1-year renewable lease. This person must not be the landowner — combining land title and the operator relationship in one person creates leverage risk (they could cut [Owner] out entirely since they hold both the title and the business relationship).
This applies to both Seminyak and Canggu.
Notarising a one-year renewable lease is unusual and draws attention. People notarise 25-30 year leases, not annual ones. Private leases are sufficient for the operator to register in OSS and run the business — the operator shows their NIB, not the lease.
| Property | Urgency | What needs to happen | Importance |
|---|---|---|---|
| Seminyak | HIGH | Operating license — already running unlicensed, OTA deadline March 2026 | ⭐⭐⭐⭐⭐ |
| Berawa | Medium | Building compliance — need a definitive answer after 9 years and IDR 60M+ spent | ⭐⭐⭐⭐ |
| Canggu | Low | Replace cooperation agreement with a clean lease | ⭐⭐⭐ |
| Medewi | None | Do nothing | — |
| Property type | 4-bedroom villa, pondok wisata |
| Building | 323 m² (207 + 116 upper), IMB valid to 2049, function: Pondok Wisata |
| Land | 500 m² sub-leased portion, head lease valid to 2049, fully prepaid |
| Current operation | Short-term tourist rental, fully booked |
| On-site operator | [Operator B] — manages property, pays local taxes in her name |
| Marketing / bookings | [Management Company] (KBLI 68200) — manages OTA listings, collects guest payments |
| Pondok wisata license | Expired — operating without current license |
| OTA compliance | No valid NIB linked to property. At risk of listing suspension after March 2026 |
| Co-lessees | Two original co-lessees both exited (one withdrew 2012, one deceased 2022). Statutory declarations obtained. [Owner] is sole beneficial lessee. |
| Head lease use clause | Says "residential" — but IMB says "Pondok Wisata". Not seeking amendment from landowner (she raised tax concerns). |
| Risk | What it means | Importance |
|---|---|---|
| PHR mismatch | If [Operator B]'s hotel tax filings do not match OTA revenue data, deeper inquiry starts | ⭐⭐⭐⭐⭐ |
| No NIB | Without a valid NIB, OTA listings may be suspended after March 2026 | ⭐⭐⭐⭐⭐ |
| Revenue identity | The OTA listing must show [Operator B] (via [Management Company]) as the provider, matching her NIB | ⭐⭐⭐⭐ |
| Operator economics | [Operator B]'s retained income must look like a real business, not a token payment | ⭐⭐⭐⭐ |
| Nominee optics | The lease structure and documentation | ⭐⭐⭐ |
| SLF / permit chain | Important but not what triggers enforcement | ⭐⭐ |
| Tax / cost | Amount | Frequency |
|---|---|---|
| PHR / PBJT (hotel tax) | 10% of gross room revenue | Monthly to BAPENDA |
| Staff, utilities, maintenance | ~IDR 35M/month | Ongoing |
| Her own income tax (SPT Tahunan) | Filed annually (may be exempt under UMKM threshold) | Annual |
| Item | Annual | Monthly |
|---|---|---|
| Gross revenue (80% occupancy) | ~IDR 1.31B | ~IDR 109M |
| Less: [Management Company] commission (20%) | (IDR 262M) | (IDR 21.8M) |
| Less: Staff, utilities, maintenance, consumables | (IDR 420M) | (IDR 35M) |
| Less: PHR / PBJT (10% of gross room revenue) | (IDR 131M) | (IDR 10.9M) |
| Available after operating costs | ~IDR 500M | ~IDR 41M |
| Lease rent to [Owner] | (IDR 420M) | (IDR 35M) |
| [Operator B] retained income | ~IDR 80M | ~IDR 6M |
| Document | Importance |
|---|---|
| NIB (printed from OSS) | ⭐⭐⭐⭐⭐ |
| Sertifikat Standar (printed from OSS) | ⭐⭐⭐⭐⭐ |
| NPWPD (local business tax number) | ⭐⭐⭐⭐⭐ |
| PHR payment receipts | ⭐⭐⭐⭐⭐ |
| IMB (showing Pondok Wisata function) | ⭐⭐⭐⭐ |
| SPPL (environmental declaration) | ⭐⭐⭐ |
| Lease B ([Trusted Indonesian Senior] → [Operator B]) — only if specifically asked | ⭐⭐ |
| Property type | Villa — no IMB / PBG / SLF |
| Building | Standing 10+ years, no building permit ever obtained |
| Land | 500 m² sub-leased portion, lease expires ~July 2036 (~10 years remaining) |
| Permit history | 9+ years of attempts, 2 different compliance companies, IDR 60M+ spent historically, no result, no explanation. No ongoing payments being made. |
| Current operation | Rented out long-term |
| Tax status | BAPENDA sent NPWPD letter October 2025 — property categorized as hotel/business. May have tax exposure even though operating as long-term rental. |
The property is currently rented long-term, which does not require a building permit for operation. If the permit truly cannot be obtained, long-term rental continues. Or the lease position could be sold.
The immediate need is not more money spent on compliance companies or assessors. It is to get the data that already exists — from the compliance company or directly from the government — and then make a decision based on real information.
| Risk | What it means | Importance |
|---|---|---|
| Building permit | No IMB/PBG/SLF — this is the fundamental problem | ⭐⭐⭐⭐⭐ |
| Hotel tax categorization | BAPENDA thinks this is a hotel. If PHR is accruing on a long-term rental, the categorization needs correcting. | ⭐⭐⭐⭐ |
| 10-year lease horizon | Only ~10 years left on the lease. Any investment in fixing the building must pay back within that time. | ⭐⭐⭐ |
Currently rented long-term. Rental income from the tenant goes to the owners informally. Because this is long-term residential rental (tenancies over 30 days), PHR does not apply. However, BAPENDA Badung has categorized this property as a hotel — which means they may believe PHR should be paid. This categorization needs to be investigated and corrected if wrong.
| Property type | 8-room kos-kosan (boarding house) |
| Building | IMB exists |
| Land | 1,000 m² sub-leased portion, lease valid to ~2054 |
| Current operation | Long-term rental only (monthly tenancies or longer, often up to a year) |
| Operator | [Operator A] — holds NIB as Usaha Mikro, KBLI 55900, Sertifikat Standar, SPPL, K3L |
| Existing agreement | Cooperation agreement with 90/10 profit split and investor control clauses — looks like a nominee arrangement on paper |
| OTA deadline | Does not apply — this is long-term rental, not short-term tourist accommodation |
| Tax position | Revenue under IDR 500M/year — exempt from income tax. PHR does not apply (tenancies over 30 days). [Operator A] has not filed annual tax returns (SPT Tahunan) for 2022-2024. |
| Property condition | Needs significant maintenance. If everything were repaired properly, there would be no profit for approximately 2 years. |
The PHR / bank activity / OTA data checks described in the strategic principles are about short-term tourist accommodation. Canggu is none of those things:
| Risk | What it means | Importance |
|---|---|---|
| Nominee optics | The cooperation agreement looks like a nominee arrangement on paper | ⭐⭐⭐⭐ |
| Tax filing gap | [Operator A] should have been filing SPT Tahunan since 2022 — even though zero tax is owed, the absence of filings looks negligent | ⭐⭐⭐ |
| Everything else | Low risk for a long-term residential rental in a residential area | ⭐ |
Current situation: Some tenants pay rent into [Operator A]'s bank account, others pay cash. Expenses come out of the same account and from cash. The remainder goes to the owners informally. This is normal for small kos-kosan operations in Bali.
Lease B does not state a fixed rent amount. Instead, it says that rent will be agreed in a separate "Rent Schedule" signed by both parties, reviewed at least once per year.
Why: The property needs significant maintenance. If everything were repaired properly, the property would generate no profit for approximately 2 years. A fixed rent that can't be paid makes the document look fictional. A variable rent schedule starts low/zero during repairs, increases as the property recovers.
Genuine market rent range for an 8-room kos-kosan in Canggu: IDR 4-15M/month depending on condition.
| Document | Importance |
|---|---|
| NIB (printed from OSS) | ⭐⭐⭐⭐⭐ |
| Sertifikat Standar | ⭐⭐⭐⭐ |
| IMB | ⭐⭐⭐⭐ |
| SPT Tahunan filing receipts (once filed) | ⭐⭐⭐⭐ |
| Tenant records showing monthly or longer tenancies | ⭐⭐⭐ |
| SPPL and K3L declaration | ⭐⭐⭐ |
| Lease B ([Trusted Indonesian Senior] → [Operator A]) — only if specifically asked | ⭐⭐ |
| Property type | Land only — no building |
| Land | Freehold via Indonesian nominee, 75 years of lease agreements as protection |
| Zoning | Agricultural / rural |
| Current use | None — land bank |
| Location | West Bali, low enforcement region (Jembrana) |
A long-term land bank. The nominee structure is standard for foreign land control in Indonesia. The 75-year lease overlay provides practical security. Enforcement in Jembrana for non-commercial rural land is effectively zero. Any restructuring would cost money and draw attention to an arrangement that currently attracts none.
| # | When | Action |
|---|---|---|
| 1 | Annually | Pay PBB (property tax) on time |
| 2 | Ongoing | Maintain relationship with nominee |
| 3 | — | Do not commercialize without zoning analysis |
| 4 | — | Do not restructure — leave it alone |
Two properties in Kabupaten Badung with Indonesian operators. Current natural differences are sufficient:
| Factor | Seminyak | Canggu |
|---|---|---|
| Operator | [Operator B] | [Operator A] |
| KBLI | 55130 (Pondok Wisata) | 55900 (Other Accommodation) |
| Use type | Short-term tourist rental | Long-term residential rental |
| Partners | [Owner] alone | [Owner] + [Partner D] + [Partner B] |
No additional measures needed.
This traces every touchpoint layer by layer — what an inspector sees at each level and whether it leads somewhere dangerous. The analysis applies to Seminyak (short-term tourist accommodation subject to active enforcement). Canggu is long-term residential and does not face this inspection chain.
| Layer | What they see | Risk | Notes |
|---|---|---|---|
| 1. Property visit | Operating villa, guests present, staff on site | LOW | Inspector asks for NIB, checks it matches the property address. [Operator B] produces NIB, Sertifikat Standar, NPWPD, PHR receipts. Normal pondok wisata. No reason to dig further. |
| 2. PHR / tax records | [Operator B]'s PHR filings vs OTA revenue data | HIGH | This is the most likely trigger for deeper investigation. If [Operator B] pays IDR 2.5-4M/month in PHR vs the correct ~IDR 10.9M, that is an obvious mismatch. BAPENDA can cross-reference against OTA data. This must be corrected. |
| 3. Bank records | [Operator B]'s bank account activity | LOW | Under the updated structure, [Management Company] sends operational disbursements directly to [Operator B]. No foreign name appears. Account shows incoming funds from a management company and outgoing business expenses. Normal pattern for a managed villa. |
| 4. The lease | If inspector asks to see the lease agreement | LOW | Under the two-layer structure, [Operator B] produces Lease B: [Trusted Indonesian Senior] → [Operator B]. Indonesian to Indonesian. No foreign passport visible. No PPh 26 question. No nominee signal. The lease is private (not notarised), so there is no semi-public record to discover independently. |
| 5. Head lease / land title | SHM and the head lease (Akta No. 16) | MEDIUM | The head lease is between [Landowner] and [Owner] (foreigner) and is notarised. An inspector who traces the chain this far would see a foreign name. However, reaching this layer requires getting past layers 1-4 first — which the updated structure is designed to prevent. In practice, inspectors do not trace land title chains for pondok wisata enforcement. |
Only 3 questions remain. Everything else has been resolved.
| Question | About | Importance |
|---|---|---|
| Will DPMPTSP accept a new operator's NIB at Seminyak when the old IMB shows a different name? | Seminyak (SLF application) | ⭐⭐⭐⭐ |
| What is the hotel tax categorization status for Berawa and is there back-tax exposure? | Berawa | ⭐⭐⭐⭐ |
| In Badung's current enforcement, what is the practical risk threshold? All foreign-linked accommodation, or only unlicensed OTA operations? | General | ⭐⭐⭐ |
| # | When | Action | Property | Importance |
|---|---|---|---|---|
| 1 | DECIDE | Identify [Trusted Indonesian Senior] for both properties | All | ⭐⭐⭐⭐⭐ |
| 2 | NOW | Sign Lease A ([Owner] → [TIS]) and Lease B ([TIS] → [Operator B]), both private, no notary | Seminyak | ⭐⭐⭐⭐⭐ |
| 3 | NOW | Sign Lease A ([Owner]+partners → [TIS]) and Lease B ([TIS] → [Operator A]) + initial Rent Schedule, both private | Canggu | ⭐⭐⭐⭐ |
| 4 | NOW | Send demand letter to compliance company (deadline: 5 March) — includes request for return of all original documents | Berawa | ⭐⭐⭐⭐ |
| 5 | NOW | [Operator A] to file SPT Tahunan for 2022-2024 | Canggu | ⭐⭐⭐ |
| 6 | ASAP | Check [Operator B]'s NPWP — cannot register in OSS without it | Seminyak | ⭐⭐⭐⭐⭐ |
| 7 | ASAP | [Operator B] registers in OSS (KBLI 55130) → NIB given to [Management Company] for OTA listings | Seminyak | ⭐⭐⭐⭐⭐ |
| 8 | ASAP | Correct PHR underpayment — [Operator B] must declare PHR matching actual OTA revenue (~IDR 10.9M/month, not IDR 2.5-4M) | Seminyak | ⭐⭐⭐⭐⭐ |
| 9 | ASAP | [Partner D] delivers notification letter to [Landowner] | Seminyak | ⭐⭐⭐ |
| 10 | ASAP | [Operator B] opens business bank account if needed | Seminyak | ⭐⭐⭐⭐ |
| 11 | ASAP | Check insurance: does [Management Company] have blanket coverage? If not, arrange guest liability policy. | Seminyak | ⭐⭐ |
| 12 | ASAP | Confirm [Management Company] can disburse operational funds directly to [Operator B]'s bank account | Seminyak | ⭐⭐⭐⭐ |
| 13 | After 5 March | If compliance company does not respond: go directly to DPMPTSP Badung | Berawa | ⭐⭐⭐⭐ |
| 14 | After 5 March | Investigate BAPENDA hotel tax categorization — is PHR accruing incorrectly? | Berawa | ⭐⭐⭐⭐ |
| 15 | DECIDE | Anneke's notarial package — proceed or shelve? Under new strategy, notarisation may not be needed. | Seminyak | ⭐⭐⭐ |
| 16 | Never | Medewi: do nothing | Medewi | — |
Establishes [Owner]'s position in the chain. 1-year renewable. Private agreement — no notary, no registration. This lease sits in a drawer and is never shown to anyone unless absolutely necessary. Signed remotely.
The visible lease. Indonesian to Indonesian — no foreign passport appears. Rent: IDR 35,000,000 per month. [Operator B] operates the pondok wisata in her own name — gets permits, collects revenue, pays costs, pays tax. Private agreement — no notary. This is the lease [Operator B] would produce if asked during an inspection.
Why IDR 35M/month: Based on the actual financial model. After operating costs, approximately IDR 41M/month is available. Rent of IDR 35M leaves [Operator B] with ~IDR 6M/month — a credible income for a villa operator.
Replaces the old cooperation agreement that had a 90/10 profit split and investor control clauses. 1-year renewable. Private agreement — no notary. This lease sits in a drawer. The old cooperation agreement stops being valid when this is signed.
The visible lease. Indonesian to Indonesian. Rent set by a separate Rent Schedule that can be updated annually. [Operator A] pays rent (per the schedule), keeps everything above it, runs the business in her own name. Private agreement — no notary.
Why no fixed rent in the lease: The property needs major maintenance. Revenue will go to repairs for approximately 2 years. A fixed rent that cannot be paid would make the document look like fiction. A variable rent schedule starts low and increases as the property recovers.
Tells the landowner that [Owner] has sub-leased to [Operator B]. Required by the head lease (Pasal 10) — notification only, no consent needed. Creates a paper trail that the landowner was properly informed. [Partner D] delivers in person or by registered post.
Why notification instead of asking for consent? The head lease says "tempat tinggal" (residential) but the IMB says "Pondok Wisata". The landowner has indicated that changing the lease terms may have tax consequences for her. Notification avoids that issue.
Step-by-step guide for registering in OSS as Usaha Perorangan, KBLI 55130 (Pondok Wisata). Produces the NIB — the single most important number in this strategy. The NIB gets entered into OTA platforms to keep listings active after the March 2026 deadline. [Operator B] needs a valid KTP and NPWP before starting.
Why is the NIB so important? OTA platforms are increasingly requiring a valid NIB linked to an accommodation KBLI for each listed property. Without it, listings may be suspended.
Formal written demand: produce all documents, explain the permit blocker, return all original documents (drawings, surveys, site plans) within 14 days. Deadline: 5 March 2026.
Why demand return of originals? These documents belong to us and were provided at the start of the engagement. We need them back regardless of whether the relationship continues.
Message to [Partner D] — Full briefing on all three active properties. [Partner D] is the person on the ground who does the physical work: delivers documents, visits notary, helps [Operator B] with registration, visits DPMPTSP if needed.
Message to [Partner B] — Canggu only. Needs to sign the lease or provide power of attorney.
Message to [Partner E] — Berawa only. Needs agreement to proceed with demand letter.