Best Project Finance Lawyers in Bali

1. About Project Finance Law in Bali, Indonesia

Project finance in Bali uses a special purpose vehicle (SPV) to raise funds primarily through project cash flows rather than the general assets of sponsors. This structure is common for tourism infrastructure, renewable energy, and large hospitality developments in Bali. Domestic and foreign lenders typically require robust contracts, clear offtake arrangements, and secured rights over project assets. In Bali, the process also involves local permits, land rights considerations, environmental approvals, and timely regulatory approvals from national and regional authorities.

Key components include an SPV typically established as a PT PMA (a foreign-owned Indonesian company) or a local entity, EPC and O&M contracts, a power purchase agreement or concession, and a comprehensive security package. Lenders will look closely at the project’s cash flow model, risk allocations, and the enforceability of security interests under Indonesian law. Because Bali sits within Indonesia, national laws intersect with local permits and land rights rules that can affect timing and feasibility.

Environmental and land considerations are particularly important in Bali. Projects must obtain appropriate environmental approvals and land rights that are legally transferable to the SPV. A seasoned legal counsel can navigate the intersection of national investment law, land law, and local Bali regulations to minimize delays and compliance risk. In Bali, as in the rest of Indonesia, project finance deals rely on clear documentation, local counsel coordination, and risk allocation that reflects Indonesian practice.

2. Why You May Need a Lawyer

• Foreign investment structure and licensing - You plan a Bali-based renewable energy project with foreign participation. A lawyer helps you set up the SPV, ensure PMA licensing with BKPM, and align the investment with OSS requirements for a single online submission. Without proper structure, you risk licensing delays or regulatory non-compliance.
• Land rights and transfer to the SPV - You must secure land rights in Bali for a hotel or resort development. An attorney guides the use of Hak Pakai or Hak Guna Bangunan, conducts due diligence on land titles, and coordinates with local authorities to ensure transfer to the SPV is lawful and enforceable.
• Securing project security interests - Lenders require security packages such as fiduciary guarantees or mortgages over project assets. A solicitor drafts, files, and perfects these securities under Indonesian law to ensure enforceability during default or restructure.
• Environmental and regulatory approvals - Your project needs AMDAL or UKL-UPL approvals, environmental licenses, and sector-specific authorizations. A Bali-based solicitor coordinates with environmental agencies and prepares compliant documentation to avoid permit rejections or delays.
• Contracting and risk allocation - EPC, O&M, and offtake agreements must allocate risks properly and be enforceable in Indonesia. A lawyer conducts risk analysis, negotiates key terms, and ensures consistency with SPV financing documentation.
• Regulatory changes and ongoing compliance - Indonesia has undergone significant reforms under Cipta Kerja (Job Creation) laws. A lawyer keeps you updated on changes affecting licensing, local content, and reporting obligations that impact project financing in Bali.

3. Local Laws Overview

Undang-Undang Republik Indonesia Nomor 25 Tahun 2007 tentang Penanaman Modal (Investment Law) governs investment activity in Indonesia and sets the framework for foreign investment, licensing, and protection of investors. This law has been amended by broader reform measures under subsequent legislation. The goal is to streamline investment processes and clarify rights and obligations for investors operating in Bali and across Indonesia.

Undang-Undang Republik Indonesia Nomor 11 Tahun 2020 tentang Cipta Kerja (Job Creation Law) enacted in 2020 to streamline licensing and approvals for investment, including online licensing and an integrated OSS system. This reform affects how project finance transactions obtain permits, licenses, and registrations in Bali. The reform emphasizes faster, centralized processing and more predictable timelines for investors.

Undang-Undang Republik Indonesia Nomor 5 Tahun 1960 tentang Peraturan Pokok-Pokok Agraria (Basic Agrarian Principles) provides the framework for land rights and land administration in Indonesia. It underpins how land can be acquired, used, and transferred for project purposes in Bali, including Foreign Direct Investment use of land through appropriate rights (for example Hak Pakai or Hak Guna Bangunan) and related restrictions.

OSS serves as the single entry point for investment licenses in Indonesia, consolidating permits under one platform.

For readers seeking official text and updates, the following government resources are useful references:

• BKPM - Investment coordination, licensing, and guidance for PMA and domestic investment; includes information on the OSS framework.
• OJK - Regulation and supervision of banks, finance companies, and other financial institutions involved in project finance; guidance on collateral and lender protections.
• Peraturan.go.id - Official repository of Indonesian laws and regulations, including the texts of UU 25/2007, UU 11/2020, and UUPA 5/1960.

The process in Bali follows national law with local execution. In practice, a successful project finance deal relies on careful alignment between investment law, land rights frameworks, and environmental approvals. Continuous monitoring of evolving regulations, especially after Cipta Kerja reforms, is essential for timely closing and long-term compliance.

4. Frequently Asked Questions

What is project finance in Bali, and how does it work?

Project finance uses an SPV to isolate project risk and rely on project cash flows for debt repayment. Lenders focus on the project’s viability, not the sponsors’ balance sheets alone. A Bali-based solicitor coordinates SPV formation, contracts, and security packages.

How do I start an SPV for a Bali project as a foreign investor?

You typically form a PT PMA, complete licensing through BKPM, register with OSS, and align the SPV’s ownership and governance with Indonesian law. A lawyer helps prepare the corporate documents and licensing applications.

What is the difference between Hak Pakai and Hak Guna Bangunan for a Bali project?

Hak Pakai is the right to use land owned by another party, while Hak Guna Bangunan allows building on land for a period. Foreign and local investors use these rights to secure land for SPVs when freehold land is unavailable. A legal professional advises on the most suitable right and transfer process.

Do I need local counsel for land transfers in Bali?

Yes. Local counsel coordinates with land offices and notaries to ensure title diligence, proper transfer or lease arrangements, and compliance with regional regulations. This helps prevent title disputes later on.

How long does it typically take to close a Bali project finance deal?

Closing usually spans 6 to 18 months, depending on land rights, environmental approvals, and due diligence complexity. A well-planned timeline with milestones reduces delays.

What are common security instruments in Bali project finance?

Common instruments include fiduciary guarantees (fidusia) over project assets, mortgages on SPV assets, and assignment of contracts and receivables. The documents must be registered and enforceable under Indonesian law.

What permits are usually required for a Bali project?

Key permits include environmental approvals (AMDAL or UKL-UPL), business licenses via OSS, and sector-specific authorizations. Environmental and land approvals are often the longest lead times.

How much does a Bali project finance lawyer typically charge?

Fees vary by project size and complexity. Expect a combination of retainer, hourly rates, and milestone-based fees. A detailed engagement letter clarifies scope, deliverables, and costs.

Do I need to use a local or Bali-based solicitor?

A Bali-based solicitor is advantageous for local permits, land rights, and coordination with regional authorities. An international or national firm with Bali experience can be effective if they have local offices or partners.

Is it possible to change the SPV structure during a project?

Yes, but it requires careful legal planning, regulator notification, and contract amendments. A lawyer can manage the process to avoid disrupting financing or operational milestones.

What happens if regulatory changes occur during negotiation?

A lawyer monitors legal developments and advises on amendments to term sheets or contracts. Proactive adjustments help keep the deal on track and compliant.

5. Additional Resources

• - Official government body facilitating and regulating investment licensing, including PMA and OSS integration for foreign and domestic investors. Function: administer investment licensing and coordinate SIMPLIFIED processes. bkpm.go.id
• - Regulates and supervises banks, financing companies, and other financial institutions involved in project finance. Function: ensure compliance, risk management, and enforcement of securities interests. ojk.go.id
• - Official repository of Indonesian laws and regulations, providing texts of investment, land, and other relevant statutes. Function: authoritative source for legal references. peraturan.go.id