DOMA Journal No. 6: a ten-day timetable for land transfers

Two developments in late September deserve a closer look: land offices are expanding faster registration, while Bali’s authorities are checking reports of hotels being offered for sale. This issue considers what is known about each, and the documents a buyer needs to form a view.

Download issue No. 6 · 4 pages

Gianyar joins the PERINTIS rollout

From 24 September, PERINTIS covers 95 Indonesian land offices. Gianyar, which includes Ubud, appears in the new rollout. The ATR/BPN ministry announced the expansion on 27 September; nationwide coverage by the start of 2027 remains a target.

The programme has three stages: BPHTB tax verification, preparation of the PPAT deed and registration at the land office. They are allocated three, two and five days respectively. Those stages make up the programme’s ten-day timetable.

A buyer can start with a straightforward question: which procedure does this transaction actually require? A seller might be referring to a completed certificate, a transfer application or documents still being prepared. Each leaves a different amount of work before an agreement can be signed.

If registration is still under way, ask for an application number and evidence of its status. The PPAT can establish whether the file has been accepted, what is missing and whether PERINTIS applies. That is a sounder basis for agreeing payment dates.

An administrative deadline does not resolve questions about boundaries, encumbrances or the seller’s authority. Those belong in the document review. A problem uncovered there will not disappear simply because an entry can be made in the register faster.

For a long lease, keep registration of a right separate from execution of the lease agreement. Ask a lawyer to describe your particular sequence: who signs, which consents are required and what must happen before funds are released. A promise to complete “everything in ten days” is too vague without that detail.

Hotels are being offered for sale. What is behind the listings?

On 21 September, ANTARA reported that the governor had asked tourism and licensing authorities to check reports of hotels for sale. He suggested that internal company finances could explain them. That explanation still needs to be tested against information about the properties.

A listing usually gives an asking price and a description of the building. The reason for selling, debt obligations and imminent repair bills may be less visible. Two similar hotels with the same revenue can therefore be worth very different amounts to a buyer.

A useful comparison requires receipts, expenses, building condition and remaining tenure. Completed transactions also matter: an asking price does not establish what the market is willing to pay.

Accommodation occupancy

Bali, July 2026 · BPS release of 1 September

Star-rated hotels: 67.29%
Non-star hotels and other accommodation: 42.53%

These figures cover July and broad accommodation categories. They do not describe September occupancy or the performance of an individual villa.

There is a more useful question for a particular villa’s operator: how many paid nights were recorded each month, and at what achieved rate? Ask for discounts, cancellations, owner stays and maintenance blocks to be shown separately. That makes it possible to understand the reported result.

Bank Indonesia holds the rate at 5.75%

The decision was announced on 23 September. For a borrower, the terms of the actual loan matter most: interest, fees and repayment dates. A cash buyer can usefully list the currency of every instalment and operating expense. If the purchase price is agreed in dollars and upkeep is paid in Rupiah, exchange-rate changes affect those parts of the budget differently.

What remains of rental revenue

For this example, variable costs are set at 30% of revenue and fixed costs at $6,000 a year. These are assumptions, not market averages. All 365 nights are available; owner stays and maintenance closures are not separately allowed for.

Annual figures, USD	Option 1	Option 2	Option 3
Average nightly rate	120	150	180
Paid occupancy	45%	60%	70%
Revenue	19,710	32,850	45,990
Variable costs, 30%	5,913	9,855	13,797
Fixed costs	6,000	6,000	6,000
Balance*	7,797	16,995	26,193

* Before taxes, debt payments, capital expenditure and other costs outside these assumptions.

Take the second option. A $150 rate and 60% occupancy give 219 paid nights, producing $32,850 in annual revenue. Deduct the assumed 30% variable costs and $6,000 fixed costs, and $16,995 remains.

This is not yet net income: the example excludes tax, debt and major repairs. For a real property, list each expense, including management and platform fees. Check that nothing has been counted twice or lost between different calculations.

Then look at the weaker months. An annual total may be acceptable even when one month’s receipts cannot cover upkeep and a loan payment. A monthly forecast will reveal the cash reserve required.

Returns become meaningful after those deductions. The denominator should include all capital committed: purchase, transaction costs, fit-out and launch. If a seller divides gross revenue only by the villa’s price, the resulting percentage is not comparable with another property’s net return.

Sources

DOMA’s calculation is illustrative, not a forecast for a specific property. Information in this issue is current as of 29 September 2026.

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