You probably already know Badung Regency covers some of Bali’s most popular areas like Canggu, Uluwatu, Kuta, Pererenan, and Seminyak. This article focuses only on Badung’s zoning regulations to help you understand exactly where and what you can build—whether that’s a luxury villa, a boutique hotel, or a beachfront restaurant.
Note: For general Bali zoning regulations, check out our separate guide. Here, we dive specifically into Badung’s zoning laws for foreign investors.
Why Zoning Matters in Badung
Zoning laws determine how land in Badung can be used. Whether you’re buying land for tourism, residential, or commercial purposes, understanding the zoning code ensures your project is legal and sustainable.
Main Zoning Types in Badung for Foreign Investors
1. Tourism Zones (W & W-2)
Best for:
Foreigners looking to invest in hospitality (villas, hotels) or tourism-related businesses.
| Zoning Code | Zone Type | General Description | Allowed Developments |
|---|---|---|---|
| W | Tourism (Natural) | The allocation of space that has the main function of tourism or has the potential for developing tourism, whether natural, artificial or cultural. | Villas, guest houses, starred hotels, restaurants, beach clubs, spas, minimarkets, cafes, resorts, co-working spaces |
| W-2 | Tourism (Man-Made) | The allocation of space which is part of a tourism zone which is developed to provide space for tourism facilities due to the potential for natural, cultural and man-made tourist attractions which are integrated in an area. | Villas, hotel apartments, kondotels, starred hotels, restaurants, malls, convention halls, bars, sports centers |
2. Residential Zones (R-2, R-3, R-4)
Best for:
Building private villas or small-scale accommodations (like Pondok Wisata).
| Zoning Code | Zone Type | General Description | Allowed Developments |
|---|---|---|---|
| R-2 | Residential (High Intensity) | The allocation of space that functions as a residence or dwelling with a large ratio between the number of house buildings and the land area | Townhouses, single-family homes, dormitories, shops, Pondok Wisata (licensed short-term rentals) |
| R-3 | Residential (Medium Intensity) | The allocation of space that functions as a residence or dwelling with an almost balanced ratio between the number of house buildings and the land area. | Single-family homes, dormitories, shops, Pondok Wisata |
| R-4 | Residential (Low Intensity) | The allocation of space that functions as a residence or dwelling with a small ratio between the number of house buildings and the land area. | Private villas, dormitories, Pondok Wisata, shops |
3. Mixed-Use Zones (C-2, C-3)
Best for:
Combining residential living with commercial activities.
| Zoning Code | Zone Type | General Description | Allowed Developments |
|---|---|---|---|
| C-2 | Mixed Medium Intensity | The allocation of space consisting of a mixture of residential and non-residential with medium intensity of space utilization/density of built-up zones. If there are no limitations on environmental carrying capacity and provisions of local socio-cultural values, then the KDB of a medium-intensity mixed area is a maximum of 70% and a building height of 3 to 5 floors. | Villas, restaurants, guest houses, art shops, salons, beach clubs, sports centers, co-working spaces |
| C-3 | Mixed High Intensity | The allocation of space consisting of a mixture of residential and non-residential with medium to high intensity of space utilization/density of built-up zones. If there are no limitations on environmental carrying capacity and provisions of local socio-cultural values, then the KDB of a high-intensity mixed area is a maximum of 80% and the building height is more than 5 floors. | Villas, starred hotels, spas, apartment complexes, entertainment venues, commercial real estate |
4. Trade & Service Zones (K-1, K-2, K-3)
Best for:
Retail, commercial hubs, light industry, or hospitality developments.
| Zoning Code | Zone Type | General Description | Allowed Developments |
|---|---|---|---|
| K-1 | Urban Trade & Services | The allocation of space is used for the development of trade and/or service activity groups, workplaces, business premises, entertainment and recreation areas with a city service scale. | Malls, restaurants, offices, industrial activities (food, clothing, printing), Pondok Wisata, starred hotels |
| K-2 | Planning Trade & Services | The allocation of space that functions for the development of trade and/or service activity groups, workplaces, business premises, entertainment and recreation areas with a WP service scale. | Similar to K-1 but for smaller-scale developments across a planning area |
| K-3 | Development Trade & Services | The allocation of space that functions for the development of trade and/or service activity groups, workplaces, business premises, entertainment and recreation areas with a SWP service scale. | Smaller scale trading, limited industrial activities, cafes, restaurants, Pondok Wisata |
Key Considerations for Foreign Investors
- Land Ownership: Foreigners can’t directly own land but can lease land (Hak Sewa) for up to 80 years. Always consult with a legal expert.
- Building Licenses: Check if you need Pondok Wisata or hotel licenses for operating short-term rentals.
- KDB & Height Limits:
- C-2 zones: Max 70% land coverage (KDB), up to 5 floors.
- C-3 zones: Max 80% land coverage, more than 5 floors allowed.
Example Investment Opportunities by Area
| Area | Likely Zoning | Best Use |
|---|---|---|
| Canggu | W, C-2, R-2 | Villas, guesthouses, beach clubs |
| Uluwatu | W, W-2, R-4 | Resorts, villas, surf camps |
| Kuta | W-2, K-1, C-3 | Hotels, malls, restaurants |
| Pererenan | R-3, C-2 | Villas, boutique accommodations |
| Seminyak | W, W-2, C-3, R-2 | Villas, starred hotels, beach clubs |
Conclusion: Invest Smart in Badung
Understanding Badung’s zoning laws gives you the confidence to invest wisely in Bali’s hottest real estate markets like Canggu, Seminyak, and Uluwatu. Whether you’re planning to build luxury villas, hotels, or businesses, aligning with the correct zoning ensures your investment is legal and profitable.
Browse our listings and find land that fits your vision and complies with Badung’s zoning regulations.
