Lease land in Bali

As long as you stick to the rules, a lease is no problem and, as long as you have building permits, building is not going to cause you any legal problems.
At the end of the lease you lose the lot.

Speak to immigration before considering hiring it out as that might be considered work, thus requiring a work permit and a change of immigration status. As you would be in direct competition with locals, this has the potential to be problematic.

Hi Fred,

Thank you so much for the reply. Can I just clarify few things, what do you mean by "hiring it out"? Why would I require a work permit and change of an immigration status?

justarchitecture wrote:

and rent it out when I'm gone.
Joanna

Renting might well be seen as a business, that meaning you could be required to have a work permit, thus your immigration status would change. If it is seen as a business, you'd have to register as a foreign owned company with all the investment that requires.
As you would be competing with locals, this could be an issue, one that makes the news so, that in mind, contact immigration before you make any plans to hire out a villa to anyone, even if all your advertising is done outside Indonesia.
Indonesia's government is very much rooted in a local system of RT/RW, that meaning the local lower levels of government know pretty much everything that's going on and report as they see fit to higher levels, that including immigration.

http://indosurflife.com/2017/02/bali-si … tel-rooms/

As reported by Bisnis Bali, further confirmation of Bali's oversupply of tourist accommodation is also seen in occupancy rates well below 50%. Low occupancies and the open tariff war now underway is resulting in bottom line results viewed by industry experts as non-sustainable over the medium to long term.

The vice –chairman of the Indonesian Tourism Industry Association (GIPI), Bagus Sudibya, admits that accurate data on the actual number of tourist accommodation rooms for sale in Bali is hard to come by, especially when illegal villas and unregistered hotel rooms are added to the equation. If, however, Bali assumes the number of 130,000 room number is largely correct, this translates into 47,450,000 hotel room nights for sale in a single year.