US investor - buying property in Bali for rental income

The first step is to form a PT PMA. You'll find that information on the net.

another issue will be quality control  - You have to watch the builders like a hawk.

As for the rest, that's legal jiggery pokery you'll need serious professional advice to get right.

Mr. Fred is right, the most difficult thing is controlling the work of your builders.

Sometimes we local residents often get into trouble without monitoring the builders.

Create a PT PMA so that it is legal for you to do that.  Actually, there are many construction service companies.  But if you don't have legality, it will be difficult to overcome any issue.

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@alyonamerritt

few honest tips from working with US investors doing exactly this:

on SDIRA, this is where most deals stall. not every custodian allows foreign real estate, and the ones that do require the entire structure to be arms-length (no personal stays, no family use, all rental income flows back to the IRA). check with your custodian before you fall in love with a specific property. UBIT can also kick in depending on how the property is leased, worth talking to a CPA who has actually done foreign SDIRA before, not just heard of it.

on the Indo side, the typical setup is a 25-30 year leasehold under your name or a PMA (foreign-owned company), with notarized lease deed and tax registration (NPWP). property management agreements should be separate from the lease itself and capped on duration so you can switch operators if performance drops.

on tax, you'll have Indo rental tax (10% final on gross for individuals, or corporate rates via PMA), then US reporting on form 8938 and FBAR if applicable, with foreign tax credit to avoid double taxation. nothing crazy but the paperwork is real.

finding one person who covers both sides is rare. most US investors end up with a US CPA + an Indo legal advisor working together. happy to share more if useful.