Best Acquisition / Leveraged Finance Lawyers in Bali

1. About Acquisition / Leveraged Finance Law in Bali, Indonesia

Acquisition and leveraged finance in Bali involves structuring debt and equity to acquire a target company or assets, often using high debt-to-equity ratios. In Bali, as in the rest of Indonesia, this requires careful adherence to national corporate, capital markets, and investment laws. Financing can come from banks, bond issuances, or mezzanine lenders, and typically involves a web of security documents and regulators.

Key considerations include due diligence on the target, compliance with foreign investment rules, and the enforceability of security interests. Because Bali hosts many foreign investors in tourism and real estate, deal teams must account for land rights, local licenses, and cross border tax considerations. A qualified corporate or finance lawyer helps align a deal with Indonesian law and local practice.

In practice, a leveraged finance deal in Bali often follows a sequence: structure the finance package, complete target due diligence, draft and negotiate term sheets, secure necessary regulatory approvals, execute security and intercreditor agreements, and close with proper registrations and notarizations. Local nuances in Bali can involve land use rights, local permits, and customary land considerations that require expert navigation.

For the exact text of the laws mentioned below, see official sources at peraturan.go.id and consult a local Bali lawyer for jurisdiction-specific interpretation. Official government sources are essential for up-to-date regulatory requirements.

2. Why You May Need a Lawyer

A Bali based lawyer assists across the lifecycle of an acquisition financed with leverage. The following real world scenarios show concrete needs that arise in Bali context.

• Land and collateral structuring for a foreign investor - A foreign buyer aims to acquire a Bali resort and finance it with a mortgage on the land. Indonesian foreigners cannot own freehold land, so the deal must navigate Hak Pakai or other rights and ensure the security package is enforceable. A lawyer clarifies permissible collateral and coordinates with notaries and banks.
• Security package alignment across lenders - A multi lender facility requires an intercreditor agreement and simultaneous mortgage or fiduciary guarantees. In Bali, local banks and foreign lenders may request different security interests, making a single, clear security stack essential.
• Due diligence on land certificates and permits - A Bali hotel acquisition involves land certificates, building permits, and environmental licenses. A lawyer leads a due diligence plan to identify defects, encumbrances, or adat land claims that could derail closing.
• Regulatory approvals for PMA or investment restructures - If the buyer is a foreign company, corporate restructures or changes to the investment license require BKPM approvals and possible amendments to investment licenses. A legal advisor manages timing and regulatory filings.
• Capital markets financing and disclosure compliance - If funding involves bonds or share issuances, Indonesian capital market rules apply. A lawyer ensures proper disclosures, prospectus drafting, and related party transaction controls under OJK oversight.
• Cross border tax and repatriation issues - Leveraged deals may raise transfer pricing and dividend repatriation questions. Engaging a Bali based attorney early helps predict tax exposures and mechanics for repatriation under Indonesian law.

3. Local Laws Overview

The following laws govern Acquisition and Leveraged Finance activities in Bali, Indonesia. They set the framework for corporate structure, investment flows, and capital market transactions.

• Undang-Undang Nomor 40 Tahun 2007 tentang Perusahaan Terbatas (Limited Liability Companies) - governs Indonesian PTs, their formation, governance, and corporate actions; amended by the Job Creation Law in 2020 to streamline licensing and investment processes.
• Undang-Undang Nomor 25 Tahun 2007 tentang Penanaman Modal (Investment) - regulates domestic and foreign investment, foreign ownership, and PMA structures; amended by the 2020 Omnibus Law to simplify certain licensing and investment steps.
• Undang-Undang Nomor 8 Tahun 1995 tentang Pasar Modal (Capital Market) - governs securities offerings, trading, and market regulation; amended over time, with major updates integrated by the Job Creation Law.

The Omnibus Law, formally Law No. 11 of 2020 on Job Creation, introduced several amendments to the above statutes to expedite licensing, investment approvals, and corporate actions. Bali projects benefit from these reforms by reducing procedural delays in financing and M&A workflows. To view official texts, use the government repository at peraturan.go.id.

Practical Bali context notes:

• Foreign ownership of land is restricted; investing through a PMA structure is typical for projects requiring land use or rights. See official land and investment guidance for details at the national level.
• Land rights and collateral in Bali may involve Hak Pakai, Hak Guna Bangunan, or other rights; enforcement requires coordinated actions by notaries, Indonesian land offices, and lenders.
• Regulatory approvals from BKPM and alignment with OJK rules for any capital markets or financing activities are common prerequisites to closing.

Authorities and resources you may consult for official texts and guidance include:

• Indonesia Investment Coordinating Board (BKPM) - bkpm.go.id
• Financial Services Authority (OJK) - ojk.go.id
• Land and Spatial Planning Authority (ATR/BPN) - atrbpn.go.id
• Official laws and regulations at Peraturan Go ID - peraturan.go.id

Note: Bali lenders and developers frequently use a mix of PT PMA structures and local partnerships to navigate land use and licensing requirements in Bali’s regulatory environment.

Source: Indonesian laws and regulatory guidance

4.Frequently Asked Questions

What is leveraged finance in Bali, Indonesia?

Leverage finance uses debt to fund an acquisition or growth, often with mezzanine or bond debt. In Bali, structuring must comply with PT, PMA, and capital market rules.

How long does due diligence take for a Bali M&A deal?

Due diligence typically takes 4 to 8 weeks, depending on target complexity and land/title reviews. In Bali, land and permits add time to the process.

What is the role of a Bali lawyer in a cross border deal?

The lawyer coordinates due diligence, drafts and negotiates term sheets, security documents, and regulatory filings. Local practice ensures enforceability in Indonesian courts.

Do foreigners can own land in Bali for a financed acquisition?

Foreigners cannot own land outright; ownership or long term use is typically structured through rights such as Hak Pakai or similar instruments under PMA frameworks with lender approval.

How much financing can a PMA company secure in Bali?

Leverage levels depend on lender risk appetite, collateral, and cash flow. Typical debt service coverage in Indonesian deals is a key factor reviewed by lenders.

What documents are required for a Bali bank loan?

Common documents include corporate profile, due diligence reports, audited financials, land and building titles, and security documentation such as mortgages and intercreditor agreements.

Is there a difference between fiduciary guarantees and mortgages in Indonesia?

Yes. A fiduciary guarantees movable assets or receivables; a mortgage (Hak Tanggungan) attaches to land or buildings. Both secure lenders but have different enforcement paths.

Where should I file regulatory approvals for a Bali M&A?

Most approvals flow through BKPM for investment changes and from relevant regulatory bodies for capital market or land use changes, depending on deal structure.

Should I hire a local Bali solicitor for a cross border deal?

Yes. A Bali based solicitor familiar with local registries, land issues, and court practices reduces closing risk and improves enforceability of agreements.

Can a leveraged deal be closed without local land approvals?

Unlikely. Land related elements usually require local land office confirmations and appropriate use rights before closing and funding.

When do changes from the Omnibus Law apply to my deal?

Law No. 11 of 2020 took effect in 2020 and introduced licensing simplifications. Specific applicability depends on the transaction type and regulatory approvals.

What is the typical timeline from term sheet to closing in Bali?

A typical Bali deal may close in 6 to 12 weeks after due diligence, depending on regulatory approvals and lender coordination.

Is the cost of a leveraged finance lawyer in Bali higher than in Jakarta?

Fees vary by complexity and firm. Local Bali firms may charge competitive daily rates, with higher costs for multi lender and cross border work.

5. Additional Resources

• - Official government agency managing investment registrations and licensing for foreign and domestic investors. bkpm.go.id
• - National regulator overseeing securities, brokerages, and lending practices affecting leveraged finance. ojk.go.id
• - National land and spatial planning authority overseeing land titles, use rights, and collateral appropriate for financing. atrbpn.go.id