Land Zone in Bali, Indonesia: Explained (2024)

Ever dreamed of owning a slice of paradise in Bali? Whether it’s a cozy villa tucked away in the rice paddies or a beachfront property perfect for a boutique hotel, getting a grip on Bali’s land zoning is key to any investment. These zoning rules tell you how land can be used, whether for farming, homes, or lively commercial spots. Knowing these zones helps you buy land that fits your dreams and avoids any nasty surprises later on. If you’re planning to buy a villa in Bali, it’s crucial to understand the land zone of the villa because it affects if your villa can be rented out or used for investment. Let’s dive into the ins and outs of land zoning in Bali, Indonesia, and decode the colors that will guide you on your property-buying adventure.

Understanding Bali’s Land Zones

Bali is one of Indonesia’s 38 provinces. While land zoning regulations in Indonesia are established by the national government, Bali does have some flexibility to implement specific zoning rules. This allows for regional considerations like cultural preservation and environmental protection. For instance, areas with significant cultural heritage sites might have stricter building height restrictions or limitations on commercial development. So, understanding both national and regional regulations is crucial for navigating land zones in Bali.

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In Bali itself, there are six main land zones, each designated by a color for easy identification:

• Green Zone (Agricultural Land): This zone prioritizes farming and cultivation. Lush rice paddies and fertile lands fall under this category. Construction is strictly prohibited here to preserve agricultural resources. You’ll find green zones in Ubud, Nusa Dua, Sanur, and around Mount Batur.
• Yellow Zone (Residential Land): This is where you can build your dream villa! Perfect for private residences, some small businesses might also be allowed depending on regulations.
• Red Zone (Commercial Land): Bustling shops, restaurants, offices, and other commercial ventures thrive in the red zone. It’s further divided into subcategories like central business districts and neighborhood commercial areas.
• Pink Zone (Tourism Land): Investing in Bali’s tourism industry? Look for pink zones. This is prime real estate for hotels, resorts, and villas, concentrated near beaches, cultural areas, and entertainment hubs.
• Orange Zone (Commercial & Residential Land): This zone offers a mix of residential and commercial uses, providing some flexibility for development.
• Conservation Zone: Protecting Bali’s natural beauty is paramount. This zone encompasses environmentally sensitive areas and restricts development to maintain ecological balance.

The Green Zone: Bali’s Agricultural Heartbeat

Green Zones, or “Zona Hijau,” are designated areas in Bali where construction and development are highly restricted to preserve the island’s natural landscapes and ecological balance. These zones play a crucial role in maintaining Bali’s environmental health, supporting biodiversity, and providing recreational spaces for both locals and tourists.

• Food Security: Bali’s vibrant rice terraces, vegetable patches, and fruit orchards all fall under the green zone. These areas ensure a steady supply of fresh, local produce for the island’s residents and tourist industry.
• Cultural Preservation: Traditional Balinese farming practices and Subak irrigation systems, a UNESCO World Heritage Site, are deeply woven into the green zone. Preserving this agricultural landscape fosters cultural identity and traditional ways of life.
• Environmental Protection: Green zones act as natural buffers, preventing soil erosion and promoting healthy ecosystems. They also contribute to water quality and biodiversity, fostering a balance between human activity and the environment.

Tight regulations govern construction within Bali’s Green Zones. The only structures that might be approved are those directly supporting environmental conservation efforts. Think research facilities studying sustainable agriculture or eco-friendly tourism infrastructure like boardwalks through rice paddies. Bypassing these regulations carries serious consequences, including legal action, hefty fines, and the unwelcome possibility of having unauthorized structures demolished.

• Small-scale farm buildings: Structures directly related to agricultural activities, like storage sheds or irrigation systems, might be permitted with proper approvals.
• Ecotourism initiatives: Some green zones allow for eco-lodges or sustainable tourism projects that promote responsible interaction with the environment. These projects must adhere to strict regulations to minimize impact on the land.

Here are some additional points to consider about the green zone:

• Strict regulations: Obtaining permits for any development in the green zone is extremely difficult, if not impossible.
• Potential for investment: While you can’t build on green zone land, there are opportunities to invest in existing farms or agricultural businesses. This allows you to contribute to Bali’s food security and cultural preservation.
• Tourism experiences: Many green zones offer breathtaking scenery and cultural experiences. Explore bike tours through rice paddies, volunteer on organic farms, or visit traditional villages to get a glimpse into Bali’s agricultural heart.

Examples of Green Zones in Bali

1. Bali Barat National Park:

Located in the western part of Bali, this national park is one of the island’s most significant Green Zones. It encompasses diverse ecosystems, including mangroves, savannahs, and rainforests, and is home to endangered species like the Bali Starling.

2. Ubud Monkey Forest:

A sacred forest sanctuary in Ubud, this Green Zone is a popular tourist destination. It provides a natural habitat for hundreds of long-tailed macaques and features ancient temples and lush greenery.

3. Jatiluwih Rice Terraces:

Recognized as a UNESCO Cultural Landscape, the Jatiluwih Rice Terraces are an example of how agricultural practices coexist with environmental conservation. The area is maintained through traditional subak (irrigation) systems that date back centuries.

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Yellow Zone

The Yellow Zone, or “Zona Kuning,” in Bali refers to areas designated for residential development. These zones are primarily intended for housing and are regulated to ensure orderly and sustainable urban growth. For expatriates and foreign investors interested in purchasing villas or residential properties, understanding the specifics of the Yellow Zone is crucial.

Yellow Zones are designated to accommodate the growing need for residential housing while maintaining the quality of life and urban planning standards. These zones are crucial for:

• Urban Development: Facilitating planned urban expansion to accommodate population growth.
• Housing Availability: Providing sufficient land for building homes, apartments, and villas.
• Community Living: Creating residential areas with supporting infrastructure and amenities for a comfortable living environment.

Practically, Yellow Zone land can also be designated for agricultural purposes. However, if Yellow Zone land is used for agricultural purposes, you can convert the land for residential or development purposes.

Some areas of the Yellow Zone allow more houses, while others allow fewer, depending on demand and the area. This type of zone is suitable for certificates such as the right-to-use certificate (Hak Sewa), the building-use certificate (Hak Guna Bangunan), or the usage-right certificate (Hak Pakai).

Red Zone (Commercial Land) in Bali

Red Zones, or “Zona Perdagangan,” in Bali are designated areas intended for commercial activities. These zones are strategically placed to support business operations, retail spaces, offices, and other commercial enterprises. For expatriates and foreign investors looking to establish or invest in businesses in Bali, understanding the specifics of Red Zones is crucial for ensuring compliance with local regulations and maximizing business potential.

Red Zones are established to facilitate the growth of commerce and industry in an organized manner based on Indonesian Law No. 26 of 2007 on Spatial Planning provides the overarching framework for zoning and land use. They are essential for:

• Economic Development: Promoting business activities that contribute to the local economy.
• Urban Planning: Ensuring that commercial activities are concentrated in specific areas to avoid disrupting residential zones.
• Infrastructure and Amenities: Providing the necessary infrastructure to support businesses, including transportation, utilities, and communication networks.

Key Characteristics

1. Business Types:

• Retail shops, supermarkets, and shopping malls.
• Office buildings, co-working spaces, and corporate headquarters.
• Restaurants, cafes, and entertainment venues.

2. Infrastructure:

• High accessibility with major roads, public transportation, and ample parking facilities.
• Availability of essential services such as electricity, water, internet, and waste management.

3. Zoning Regulations:

• Specific building codes to ensure safety and functionality.
• Regulations on signage, advertising, and business operations to maintain order and aesthetics.

Foreign investors looking to acquire commercial property in Bali must navigate a complex legal landscape. While direct ownership of property is generally not allowed, foreigners can own commercial properties through a locally established company (PT PMA) or by securing long-term leases (Hak Sewa) and building-use rights (Hak Guna Bangunan). It is crucial to verify the zoning status of the land before making a purchase to ensure it is designated for commercial use.

Pink Zone (Tourism Land) in Bali

Pink Zones, or “Zona Pariwisata,” in Bali are areas specifically designated for tourism-related activities. These zones are vital for supporting Bali’s robust tourism industry, which is a major driver of the island’s economy.

Pink Zone land is an excellent choice if you want to build or buy a villa and use it for commercial purposes. Similar to Red Zones, Pink Zones are designated for commercial and tourism-related activities.

Pink Zones are strategically allocated to facilitate and enhance tourism, ensuring that the infrastructure and services cater to the needs of visitors while preserving the island’s cultural and environmental integrity. The key objectives of Pink Zones include:

• Tourism Development: Promoting the growth of the tourism industry through well-planned and sustainable development.
• Economic Growth: Generating revenue and employment opportunities by attracting tourists and tourism-related businesses.
• Cultural Preservation: Integrating tourism with the preservation of Bali’s unique cultural heritage and natural beauty.

Key Characteristics

1. Types of Tourism Facilities:

• Hotels, resorts, and guesthouses.
• Restaurants, cafes, and bars.
• Recreational facilities such as theme parks, water parks, and cultural centers.

2. Infrastructure:

• Well-developed infrastructure, including transportation links, utilities, and communication networks, to support tourism activities.
• Proximity to tourist attractions, beaches, cultural sites, and other points of interest.

3. Zoning Regulations:

• Specific building codes to ensure safety, sustainability, and aesthetic consistency.
• Tourism zones cannot be used for residential or industrial purposes without special permits.
• Activities that could negatively impact the tourism experience or environment, such as heavy manufacturing, are prohibited.

Orange Zone (Commercial & Residential Land) in Bali

The Orange Zone, or “Zona Komersial dan Permukiman,” in Bali represents areas designated for both commercial and residential purposes. This mixed-use zoning allows for a harmonious blend of living spaces and business activities, creating vibrant communities where residents can live, work, and play. This area provides homes and businesses in the same area. You can build a villa on orange zone land. The advantage of this area is that this land can accommodate local residents and tourists. So it can be used for housing or holiday rental purposes.

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Orange Zones are established to support a balanced integration of commercial and residential developments. The key objectives include:

• Mixed-Use Development: Imagine bustling shops and restaurants lining the ground floor, with comfortable apartments or townhouses occupying the upper stories. This vertical integration is a common feature of the orange zone, creating a vibrant and convenient atmosphere.
• Horizontal Integration: Not all orange zones are vertical. Some areas feature a more horizontal layout, with shops, cafes, and service providers interspersed amongst residential neighborhoods. This fosters a strong sense of community, allowing residents to access daily necessities without venturing far.

Key Characteristics

1. Mixed-Use Development:

• Combination of residential buildings, such as apartments and houses, with commercial establishments like shops, offices, and restaurants.
• Allows for vertical development, where lower floors may host commercial activities and upper floors are used for residential purposes.

2. Infrastructure:

• Well-developed infrastructure to support both living and business needs, including roads, public transportation, utilities, and green spaces.
• Access to essential services such as schools, healthcare facilities, and recreational areas.

3. Zoning Regulations:

• Regulations on noise levels, traffic management, and public amenities to maintain the quality of life.
• Foreigners can participate in Orange Zone developments through long-term leases (Hak Sewa) or by establishing a local company (PT PMA).

While the orange zone offers an enticing mix of convenience and vibrancy, it’s important to weigh some considerations before diving in. Living in close proximity to shops and restaurants might translate to higher noise levels, so ensure your tolerance aligns with the area’s energy.

Furthermore, just like other zones, specific regulations govern development. Understanding these regulations, including limitations on building heights and permitted commercial activities, is crucial for any construction project. Finally, the orange zone thrives on a delicate balance between commercial activity and residential tranquility. Look for areas with established community guidelines that ensure both residents and businesses can flourish.

Conservation Zone in Bali

Conservation Zones, or “Zona Konservasi,” in Bali are areas specifically designated to preserve the island’s natural environment and biodiversity. These zones play a critical role in protecting Bali’s unique ecosystems, cultural heritage, and scenic beauty. Conservation Zones are established to maintain ecological balance, protect natural habitats, and ensure the sustainability of Bali’s environmental resources. The primary objectives include:

Key Characteristics

1. Types of Protected Areas:

• National parks, wildlife reserves, and marine sanctuaries.
• Forest reserves, wetlands, and protected coastal areas.
• Cultural and historical sites with significant ecological value.

2. Infrastructure and Accessibility:

• Limited infrastructure to minimize human impact, often focused on eco-friendly and sustainable designs.
• Controlled access to sensitive areas to prevent overuse and damage.

3. Zoning Regulations:

• Strict building codes and land use restrictions to ensure minimal environmental impact.
• Regulations on permitted activities to protect the integrity of the ecosystems.
• Prohibited Activities: Mining, logging, industrial activities, and any form of land alteration that could harm the environment.
• Permitted Activities: Eco-tourism, research, education, and conservation projects, provided they comply with environmental regulations.

While directly investing in land within Bali’s conservation zones is restricted, there are impactful ways to contribute to their preservation. Supporting eco-tourism ventures that prioritize sustainable practices injects funds directly back into conservation efforts.

Examples of Conservation Zones in Bali include Bali Barat National Park, located in the western part of the island, which encompasses diverse ecosystems such as mangroves, savannahs, and rainforests and is home to endangered species like the Bali Starling. Another notable example is the Ubud Monkey Forest, a sacred forest sanctuary in Ubud known for its population of long-tailed macaques and ancient temples, focusing on cultural preservation and wildlife conservation.

Additionally, the Nusa Penida Marine Protected Area aims to protect coral reefs and marine biodiversity while promoting sustainable fishing practices, making it a popular destination for diving and snorkeling with strict regulations to preserve the marine ecosystem.

How To Check Land Zone in Bali

You can check the land zone in Bali, as well as across the entire Indonesia area, using the Gistaru interactive map provided by the Ministry of Agrarian Affairs and Spatial Planning. The website, accessible at Gistaru Interactive Map, is in the Indonesian language, but it allows you to browse different areas, including Bali, and view maps with colored zone markings.

If you are using an Android, you can also use BATARA Mobile App to check the land zoning in Badung Province area. But that app is limited only to Badung area.

For example, the map below shows the land zone of Kecamatan Kuta, which includes areas like Canggu and Pererenan. This tool is invaluable for anyone looking to understand the zoning designations for specific properties in Bali.

Also, it’s always best to talk to officials. You can visit local government offices such as the Kantor Camat or Kantor Kelurahan, or the planning department of the Bali provincial government, where official zoning maps are available. Additionally, the National Land Agency (Badan Pertanahan Nasional or BPN) office in Bali can provide detailed information on land titles and zoning status. These resources are essential for verifying the specific land use designations and ensuring compliance with local regulations.

If you want to buy a villa for rental purposes or your dream house and wonder about the land zone, you can talk to us, a real estate agency in Bali with over a decade of experience.