Off-Plan Payment Schedules in Bali: Reservation, Stage Payments and What to Hold Back

What a typical off-plan schedule looks like

Most Bali off-plan projects sell in three phases: a reservation fee that takes the unit off the market, a down payment when the sale agreement is signed, and stage payments as the building rises, with a final payment at handover. The percentages vary by developer and are a matter of contract, not law, which is why two projects at the same price can carry very different risk.

Read the schedule as a question: how much of my money is with the developer before there is something on the land that I could sell or finish without them? The lower that share, the safer the schedule.

The floor the law sets

PP 12/2021, which implements the housing provisions of the Job Creation Law, does not leave the pre-sale stage to trust. A developer may market and take payments before the PPJB, the binding pre-sale agreement, but may not sign the PPJB until four conditions are met: clear title to the land, an issued building permit (PBG), the infrastructure in place, and construction at least 20% complete. Before those conditions, the developer may not collect more than 80% of the price.

That is a ceiling, not a recommendation. A buyer can and should negotiate far less than 80% before the structure stands. Ask the developer in writing which of the four conditions are met today and on what dates the others are expected.

Escrow and where the money goes

Indonesia has no general rule that a Bali villa developer must hold buyers’ payments in escrow, so whether your money is ring-fenced depends on the contract. Some developers offer an escrow account with a bank or a notary’s trust arrangement; many do not, and spend payments as they arrive.

Ask three questions before the down payment: whose account receives the money, in which company’s name; whether payments are held until a stage is certified or spent on arrival; and what you get back, and from whom, if the project stops. A refund promise from a company with no assets other than the half-built project is worth little, so ask what the developer holds.

• Never pay into a personal account. The payee should be the company that signs the agreement.
• Pay in rupiah to an Indonesian account: Bank Indonesia Regulation 17/3/PBI/2015 requires transactions in Indonesia to be settled in rupiah, even when the price is quoted in dollars.
• Keep every receipt against the stage it paid for.

What to hold back until the end

The last payment is your only leverage once the building stands. Keep enough of it to matter until three things are in hand: the SLF, which PP 16/2021 requires before a building may be used; an inspection by an engineer or surveyor you appoint, against the approved PBG drawings; and a written defects list with a date to clear it.

A retention, a share held back until the end of an agreed defects period, is common in building contracts and worth asking for. The off-plan handover guide sets out what to inspect.

Delay, VAT and the lease clock

A villa build is reported to take roughly 12 to 18 months. The contract should give a handover date, a penalty per month of delay, and a right to a refund if the project stops for longer than a stated period.

Two costs hide in the schedule. A new villa bought from a VAT-registered developer carries VAT, effectively 11% under PMK 131/2024, so ask whether each payment includes it. And on a leasehold, ask when the lease starts: if it starts at signing, the construction months come out of your years. Off-plan leases had a median 28 years on 6 October 2026, against 25 for completed villas; 18 months of building leaves about 26.5 of those 28.

For developers: a schedule that sells

Buyers who have read the rules compare payment schedules as closely as prices. A schedule tied to certified stages, with escrow or a named guarantee and a retention at handover, answers the questions an overseas buyer will otherwise ask one message at a time.

Developers who list on Baliestate can publish each unit with its price, size, tenure and payment milestones on the area’s off-plan page, read daily from their own website, from USD 100 a month; the guide on selling off-plan villas covers what buyers check.

Common questions

Sources and further reading

• PP 12/2021 on housing, the PPJB conditions (JDIH BPK)
• PP 16/2021 on buildings, PBG and SLF (JDIH BPK)
• PMK 131/2024 and the effective 11% VAT rate (DJP)
• SIMBG, the national building-permit system
• Off-plan villas and new projects in Bali
• Every new development, by area
• What buying costs: duty, notary and VAT
• For developers: list every unit

Related guides

• Buying off-plan in Bali without getting burned
• Off-Plan Handover in Bali: Snagging, the SLF, Late Delivery and When the Lease Starts
• How to Check a Bali Villa Developer Before You Buy Off-Plan
• Off-Plan vs Completed Villas in Bali: Which Is Cheaper per m²?
• How to Transfer Money to Bali to Buy Property
• Due Diligence Before Buying Property in Bali: 2026 Checklist

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