Best Private Equity Lawyers in Ubud

Structuring an investment in Ubud’s tourism and property businesses

Private investment deals in Ubud often involve hotels, villas, restaurants, wellness businesses, or local operators seeking capital to expand. A lawyer can help structure an investment in an Indonesian company, negotiate investor protections, and check that the business can lawfully carry out its activities.

For a foreign investor, the available ownership structure depends on the business activity and Indonesia’s investment rules. A foreign-owned company may need to be established as a PT PMA, and its business activities must be recorded under the appropriate classifications and licensed through the national online licensing system.

Property requires separate scrutiny. Foreign individuals cannot directly own Indonesian freehold title, known as Hak Milik; a company’s ability to hold other land rights depends on its legal status and the intended use. Before investing in a Ubud accommodation or development business, check title, permitted land use, building approvals, and tourism-related licensing.

Transactions may involve a share subscription, purchase of existing shares, or another documented funding arrangement. Due diligence should cover the company’s ownership and filings, contracts, debts, permits, tax position, land arrangements, and any conditions for completing the investment.

When a lawyer can reduce investment risk

• You are investing in a villa, hotel, restaurant, or wellness operator and need to confirm that its permits and land use match its actual activities.
• A foreign investor is considering a stake in a Gianyar business and needs advice on whether the activity permits foreign ownership and what company structure is required.
• You are buying shares from a founder and need to check the company’s liabilities, ownership records, contracts, licences, and outstanding disputes before signing.
• An Ubud business is raising capital, and its owners need clear terms on valuation, board or management rights, future funding, share transfers, and exit options.
• The proposed investment depends on a lease, land-use arrangement, building approval, or tourism licence that must be verified before funds are released.

Indonesian laws and rules relevant to investment deals

Law No. 40 of 2007 on Limited Liability Companies governs Indonesian limited liability companies, including share ownership and corporate decision-making. It was amended by Law No. 6 of 2023, enacted on March 31, 2023. Company documents and the articles of association should be checked against the current rules before a transaction closes.

Law No. 25 of 2007 on Investment sets the general framework for domestic and foreign investment and has also been amended by Law No. 6 of 2023. Whether foreign capital is permitted, and on what terms, depends on the relevant business activity and current investment restrictions.

Government Regulation No. 28 of 2025 on Risk-Based Business Licensing provides the current national framework for licensing business activities according to risk. It took effect on June 5, 2025, replacing the earlier framework under Government Regulation No. 5 of 2021. Investors should confirm through the official licensing system which requirements apply to each activity.

Frequently asked questions

Do I need a lawyer to invest in an Ubud business?

There is no general rule requiring every investor to hire a lawyer. Legal advice is especially useful where the deal involves foreign ownership, a share purchase, land or lease rights, multiple permits, or significant investor protections.

Can a foreign investor buy shares in an Indonesian company?

Possibly, but eligibility depends on the company’s business activities and the current investment rules for those activities. A lawyer can check whether foreign participation is allowed and whether the company’s structure and registrations need to change.

Does a foreign investor need a PT PMA?

A PT PMA is commonly used for foreign investment in an Indonesian operating company, but the right structure depends on the transaction and the activity. The investor should confirm applicable ownership, capital, registration, and licensing requirements before committing funds.

Can a foreign investor own land in Ubud?

Foreign individuals cannot directly hold Indonesian Hak Milik freehold title. Other land rights and arrangements have different conditions, so the title, permitted use, holder’s eligibility, and underlying agreements need to be reviewed rather than relying on informal assurances.

What should due diligence cover before I buy shares?

Review the company’s share ownership, corporate approvals, financial and tax records, debts, litigation, material contracts, and business licences. For a Ubud property-related business, also examine land title or lease documents, land-use compatibility, and building approvals.

How long does a private investment transaction take?

A straightforward transaction may take several weeks, while complex due diligence, foreign investment structuring, or licensing issues can extend the process. Timing depends on document availability, negotiations, required approvals, and any changes needed to the company or its licences.

How much does a lawyer cost?

There is no single standard fee for investment legal work. Lawyers may quote a fixed fee for defined drafting or due diligence, an hourly rate, or a transaction-based fee; ask what is included and whether taxes, translations, notarial work, and filing costs are separate.

What documents should I prepare for an initial consultation?

Bring the proposed term sheet or investment offer, company and shareholder details, available financial information, and relevant contracts or permits. For property-linked businesses, include land or lease documents, building records, and any correspondence about approvals.

Is a term sheet binding in Indonesia?

That depends on its wording and the obligations it creates; a document’s title alone does not settle the issue. Have counsel identify which clauses are intended to bind the parties, such as confidentiality or exclusivity, and which remain subject to definitive agreements.

How can an investor protect their rights after investing?

Protections can include clear rights in the company’s articles and transaction documents, reporting obligations, reserved decisions, transfer rules, and procedures for future funding or disputes. The terms should be consistent with Indonesian company law and properly approved and recorded.

Where are business licences checked or obtained?

National business licensing is handled through Indonesia’s Online Single Submission system, known as OSS. Requirements depend on the business activity and risk classification; local or sector-specific approvals may also be needed.

Official resources

• Online Single Submission (OSS): Indonesia’s official system for risk-based business licensing, where investors can review licensing requirements and manage applications.
• Ministry of Investment and Downstream Industry/BKPM: The national investment authority, which provides information on investment policy and foreign investment procedures.
• DPMPTSP Kabupaten Gianyar: Gianyar Regency’s investment and one-stop integrated services office, which can provide local guidance on investment services and relevant regional processes.

Next steps for finding and hiring a lawyer

1. Define the deal. Write down the target business, proposed investment amount, ownership stake, investor nationality, and intended role. This can take a day and helps identify the right expertise.
2. Gather the available records. Collect the term sheet, company documents, financial statements, licences, contracts, and land or lease papers. Allow several days if records are held by multiple parties.
3. Shortlist Indonesian advocates. Look for counsel who handles corporate investment, foreign investment where relevant, and Bali property or licensing issues. Ask about their role in comparable transactions and who will do the work.
4. Compare written engagement proposals. Request the scope, fee basis, exclusions, expected deliverables, and conflict-check process. Comparing proposals often takes a few days.
5. Agree the review plan before signing or paying. Confirm which due diligence checks, transaction documents, approvals, and conditions must be completed before funds are released.
6. Set milestones and keep records. Use a written timeline for diligence, negotiation, corporate approvals, licence checks, and completion. Ask counsel to flag delays or regulatory conditions promptly, as the overall process may take weeks or longer.