How to Verify an Indonesian Developer: BPN, SIPB Permits, Company Registration

Developer Due Diligence in Indonesia

Indonesia's property development market, particularly in Bali, includes everything from established developers with decades of track records to individuals who have decided to build a single villa project. The verification process requires checking multiple government databases and conducting on-the-ground research.

Check 1: Company Registration (AHU Online)

Every Indonesian company must be registered with the Ministry of Law and Human Rights. The AHU Online system at https://ahu.go.id provides company registration data.

Verify the company's legal name, registration number, and date of incorporation. Check the company type (PT for most developers). Verify the directors and commissioners (direksi and komisaris). Check the company's stated business purposes (maksud dan tujuan).

For PT PMA developers (foreign-owned), also verify their investment registration through the OSS (Online Single Submission) system at https://oss.go.id.

Check 2: NIB and Business Licenses

Under Indonesia's OSS system, companies receive a NIB (Nomor Induk Berusaha, Master Business Number) that serves as their primary business identification. The NIB system replaced the older SIUP (Surat Izin Usaha Perdagangan) and TDP (Tanda Daftar Perusahaan).

Verify the developer's NIB through the OSS portal. Check that their registered business classification (KBLI, Klasifikasi Baku Lapangan Usaha Indonesia) includes construction (codes under Section F, particularly 41 for building construction).

Check 3: BPN Land Verification

Before purchasing from a developer, verify the land status at the local BPN (Badan Pertanahan Nasional) office. Check that the developer holds a valid land right (Hak Milik, HGB, or Hak Pakai) or has a legitimate agreement with the landowner. Verify the land certificate is genuine by cross-referencing with BPN's records. Check for any encumbrances, mortgages, or disputes registered against the certificate. Confirm the land area matches the certificate and the developer's representations.

BPN operates Kantor Pertanahan (Land Offices) at the regency/city level. For Bali, the relevant offices are Kantor Pertanahan Kabupaten Badung (for most of southern Bali's villa areas), Kantor Pertanahan Kabupaten Gianyar (for Ubud area), and Kantor Pertanahan Kota Denpasar (for Denpasar city).

Check 4: Construction Permits

Since 2021, Indonesia has been transitioning from the IMB (Izin Mendirikan Bangunan) system to the PBG (Persetujuan Bangunan Gedung) system under Government Regulation No. 16 of 2021. Both are building permits that authorize construction.

Verify the developer's permit with the local Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu (DPMPTSP, the One-Stop Integrated Investment and Services Office). The permit should specify the location, building function, building area, number of floors, and construction timeline.

Also check for the SLF (Sertifikat Laik Fungsi, Certificate of Building Function Worthiness) for completed buildings. This is the equivalent of a habitation permit, confirming the building meets safety and function standards.

Check 5: Environmental Permits

For larger developments, verify compliance with environmental regulations. Under the Environmental Protection Law No. 32 of 2009, projects above certain thresholds require an AMDAL (Analisis Mengenai Dampak Lingkungan, Environmental Impact Assessment) or UKL-UPL (Upaya Pengelolaan Lingkungan Hidup - Upaya Pemantauan Lingkungan Hidup, Environmental Management and Monitoring Plans).

Smaller projects may require a SPPL (Surat Pernyataan Pengelolaan Lingkungan, Environmental Management Commitment Letter).

Check with the local DLHK (Dinas Lingkungan Hidup dan Kehutanan, Environmental and Forestry Agency) for the project's environmental compliance status.

Check 6: Track Record

Request a list of completed projects. Visit them. Check whether construction quality is acceptable, whether common areas are well-maintained, whether there are unresolved disputes with buyers, and whether the developer delivered on schedule.

Bali's expat community is well-connected. Ask in Facebook groups, forums, and among established real estate agents for opinions on specific developers.

Red Flags

Developers who cannot produce their PBG/IMB or claim it is "being processed" while already selling units. Companies incorporated very recently with no track record. Requests for payment to personal accounts rather than the company account. Land that is still in the process of conversion from agricultural zoning. Developers who resist independent legal review of their contracts. Projects marketed with renders and promises but no visible construction activity. Prices significantly below market rate.

For developer verification guidance in Indonesia, Bektu provides resources at https://bektu.com.