6 Types of Land Zoning in Bali: What Every Buyer and Investor Must Know
Understanding land zoning is one of the most critical steps when buying, leasing, or developing property in Bali. The zoning system determines what can be legally built or operated on a piece of land, and failing to comply with the zoning regulations can result in serious legal consequences—ranging from construction halts to demolition or loss of investment.
At The Bali Lawyer, we guide clients through the complexities of Indonesia’s land laws and zoning framework to help them make informed, secure property decisions. This guide breaks down the six key land zoning categories in Bali, helping you understand their purpose, limitations, and legal considerations before you proceed with any property transaction.
Why Land Zoning Matters in Bali
Bali is a highly desirable destination for both local and international investors, especially in real estate and tourism sectors. However, not all land is created equal in the eyes of Indonesian law.
Every plot in Bali is subject to the RTRW (Rencana Tata Ruang Wilayah) or Spatial Planning Regulations. These rules assign a zoning classification to each area, regulating how the land can be used, whether for residential, agricultural, tourism, or industrial purposes.
Failure to check the zoning before buying land or starting construction can result in:
Denied building permits
Legal enforcement or fines
Property demolition
Inability to register a business or obtain a license
That’s why we recommend every client carry out a legal zoning check before finalizing any transaction.
Overview of the 6 Main Zoning Types in Bali
Each zoning type is typically color-coded and outlined in the RTRW zoning map. Let’s explore the six key categories and what they mean for landowners and developers.
1. Yellow Zone – Residential Zone
The Yellow Zone is the most common and safest type for private property owners and villa developers. Land in this zone is designated for residential use. It is ideal for:
Private homes
Villas for personal use
Family dwellings
Homestays (with permits)
It is relatively easy to obtain a PBG (Building Permit) and other legal documentation when building on land in the Yellow Zone. However, commercial activities are generally not allowed unless authorized through additional zoning or permit modifications.
Key Consideration: Even if the zone allows housing, you must still ensure the structure meets building codes and is supported by the appropriate architectural and environmental plans.
2. Red Zone – Commercial Zone
The Red Zone is designated for business and commercial use. This includes land suitable for:
Hotels and resorts
Restaurants and cafés
Retail stores
Offices
Entertainment venues
Warehouses
If your intention is to operate a business—whether as an individual or through a PT PMA (foreign-owned company)—you must ensure your property is located within a Red Zone. Attempting to run a business in a residential or agricultural zone is a serious violation and can result in shutdowns or revoked licenses.
Key Consideration: Most permits for Red Zone land require additional documentation, including environmental impact assessments and business licenses.
3. Green Zone – Agricultural and Environmental Protection
Green Zone land is primarily reserved for farming, agriculture, and ecological preservation. Construction of permanent buildings for residential or commercial use is strictly prohibited. Landowners in the Green Zone are limited to:
Agricultural production
Plantations
Forestry
Environmental conservation projects
Despite its lower land price, buying land in the Green Zone carries significant legal risk. Many buyers have been misled into thinking they can build villas on such land. This is illegal, and authorities in Bali are increasingly enforcing restrictions.
Key Consideration: Always verify land classification through a legal zoning letter (KRK) before entering into any sale or lease agreement.
4. Blue Zone – Public Facilities and Infrastructure
Blue Zones are allocated for government and public infrastructure. This includes land used for:
Schools
Hospitals
Religious buildings (temples, churches, mosques)
Government offices
Public parks
Transportation terminals
These zones are not available for private purchase or development. Any usage is subject to state control, and permits for private activity are rarely granted.
Key Consideration: If land borders a Blue Zone, there may be height or use restrictions placed on neighboring properties.
5. Purple Zone – Special Tourism or Development Area
Purple Zones are typically designated for large-scale tourism projects, mixed-use developments, or specialized investments. Land in these areas may be used for:
Integrated tourism resorts
Cultural and art centers
Conference halls
Tourism infrastructure
Although these areas offer high potential, development is highly regulated and subject to multiple agency approvals. Investors must prepare detailed proposals and comply with environmental, social, and cultural assessments.
Key Consideration: Special development zones often have overlapping restrictions. Partnering with legal advisors is essential to ensure full compliance.
6. Orange Zone – Industrial and Energy Development
Orange Zones are assigned to industrial operations such as:
Factories
Energy production (solar, biomass, geothermal)
Processing plants
Distribution hubs
While rare in popular residential regions like Canggu or Ubud, Orange Zones exist in outer areas such as Tabanan or North Bali, where large-scale operations are more appropriate.
Key Consideration: Foreign investors may apply for usage through a registered PT PMA, but must secure special environmental and technical permits.
Zoning Verification: How to Check a Land’s Classification
To legally verify a land’s zoning category in Bali, the following process should be followed:
Request a KRK Letter (Keterangan Rencana Kota):
This official document from the local Spatial Planning Office confirms the current zoning classification of the land.Check the RTRW Map:
Cross-reference the land’s location with the current Spatial Plan Map to validate its designation.Hire a Legal Consultant:
At The Bali Lawyer, we carry out zoning assessments, site investigations, and risk analysis on your behalf.
Legal and Practical Consequences of Zoning Violations
Zoning laws are enforced more strictly than ever in Bali. The consequences of violating zoning restrictions include:
Rejection of building permit applications
Refusal of PBG or SLF (Building Feasibility Certificate)
Demolition of illegally constructed structures
Business license cancellation
Immigration and investment penalties
Many of these issues arise when buyers fail to conduct proper due diligence. As part of our service, The Bali Lawyerensures every zoning detail is legally verified before you sign any agreement or submit a permit application.
How Zoning Affects Property Investment
Zoning not only affects what you can build—it impacts the long-term profitability and legal security of your investment. For example:
Rental businesses must be in a Red or Purple Zone
Villas with rental income must be backed by the right permits and zoning
Businesses operating in Yellow Zones may face future closure
Land in Green Zones cannot be converted or rezoned easily
Choosing the correct zone for your objectives will reduce legal risks and optimize your return on investment.
Common Mistakes to Avoid
Assuming all land is buildable:
Just because the land looks undeveloped does not mean it’s legal to build on.Relying on verbal assurances:
Always request written documentation confirming zoning classification.Skipping legal checks:
Never finalize a transaction without full due diligence, including zoning, ownership rights, and building permits.Planning business activities in residential areas:
Mixing business operations with private zones is a fast track to legal trouble.
Get Professional Support from The Bali Lawyer
Navigating Bali’s land zoning system can be overwhelming without proper legal support. At The Bali Lawyer, we help clients:
Verify zoning classification
Conduct due diligence
Prepare and review land contracts
Secure building and business permits
Establish legal business entities (PT PMA)
Avoid zoning violations
Whether you’re building a home, opening a resort, or setting up a business, our legal team ensures your plans are protected, compliant, and future-ready.