Best Structured Finance Lawyers in Bali

1. About Structured Finance Law in Bali, Indonesia

Structured finance in Bali operates within Indonesia’s wider capital markets and banking framework. Deals typically involve creating an SPV or special purpose vehicle to isolate assets, then issuing securities or obtaining secured financing backed by those assets. In Bali, as a popular tourist and real estate hub, common structures include securitizing hotel receivables, resort or timeshare income, and asset backed financing secured by movable or immovable collateral. The legal architecture relies on Indonesian statutory law, OJK regulations, and local enforcement practices.

Because Bali shares the same national framework as Indonesia, the availability and enforceability of security interests, as well as cross-border investment considerations, depend on compliance with national laws. Local land and property issues, property rights, and corporate structures must align with Indonesia’s agrarian and company law regimes. Working with a Bali-based advokat (lawyer) helps tailor a structure to local realities such as land rights, permits, and local contracting practices.

Structured finance transactions in Bali often require coordination among multiple professionals, including lawyers, notaries (notaris), tax advisors, and due diligence specialists. This collaboration ensures that the securitization or secured lending arrangement adheres to Indonesian law and local Bali regulations while achieving efficient regulatory approvals where needed.

Key takeaway: A solid understanding of both national securities law and local land, corporate, and contract rules is essential for successful structured finance in Bali.

2. Why You May Need a Lawyer

• Securing a hotel receivables securitization in Bali where the SPV borrows against anticipated room revenue. A lawyer helps draft the structure, review the security package, and coordinate with OJK requirements for asset backed securities.
• Creating a financing package backed by fiduciary guarantees for a Bali resort supplier. An advokat can prepare the fiduciary security documents, ensure proper perfection of security rights, and advise on possible priority conflicts with other lenders.
• Establishing an SPV and related intercompany arrangements for a tourism project. A lawyer can draft the SPV charter, intercompany agreements, and asset transfer documents to minimize leakage and maintain ring-fencing of assets.
• Advising on land and property rights for collateral in Bali’s agrarian context. Because foreigners face ownership restrictions, counsel can design compliant structures such as leasehold, Hak Pakai, or Indonesian-entity-backed ownership for security interests.
• Navigating regulatory approvals and compliance with OJK and Bank Indonesia rules for securitization, asset backed securities, and secured lending in Bali.
• Structuring cross-border investments into Bali where foreign investors rely on Indonesian counsel to ensure proper local registration, tax compliance, and protective securities for asset transfers.

3. Local Laws Overview

1. Agrarian Law and Land Rights in Indonesia - Undang-Undang Republik Indonesia Nomor 5 Tahun 1960 tentang Pokok-Pokok Agraria (UUPA) sets the framework for land ownership and land rights across Indonesia, including Bali. It governs how land can be held, leased, and used, and it influences security interests attached to real property.

   Source: UUPA and related land regulations are available through official regulation portals and government publications.

2. Capital Market Law - Undang-Undang Republik Indonesia Nomor 8 Tahun 1995 tentang Pasar Modal (Capital Market Law) governs the issuance of securities, financial instruments, and market conduct. It forms the backbone for securitization and asset-backed financing activities in Indonesia, including Bali projects.

   Source: Official texts and explanations are available from the government regulation portal and the Financial Services Authority (OJK) materials.

3. Fiduciary Security Law - Undang-Undang Republik Indonesia Nomor 42 Tahun 1999 tentang Jaminan Fidusia (Fiduciary Guarantee) regulates security interests on movable assets and certain receivables, and is frequently used in secured lending structures in Bali.
4. OJK Regulations on Securitization and Asset-Backed Securities - The OJK issues regulations governing securitization structures, asset-backed securities, and related disclosures. These rules guide how securitized products are structured, registered, and offered in Indonesia, including in Bali.

Notes on local applicability: In Bali, land and real property financing must account for local land rights and permissions. Foreign ownership of land is restricted, so structures often involve local entities or lease-based approaches. Always verify the latest versions of laws and regulations in official sources before proceeding.

Citations and official resources: - The Capital Market Law and other related instruments are available through official sources such as the OJK and the government regulation portal peraturan.go.id.

“Undang-Undang Pasar Modal (Capital Market Law) provides the framework for securitization and asset-backed transactions in Indonesia, including Bali.”

“Fiduciary guarantees are a common tool to secure obligations in Indonesian secured lending, including transactions in Bali.”

4. Frequently Asked Questions

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

Structured finance packages assets into a defined structure, often with an SPV, to isolate risk and enable security or funding. It involves legal, regulatory, and tax considerations across Indonesia and Bali-specific contexts.

How do I start a securitization in Bali for a resort project?

Begin with a clear asset pool, engage a Bali-based advokat, draft a term sheet, assess regulatory requirements with OJK, and form an SPV that holds assets and issues securities.

What is an SPV in a Bali structured finance deal?

An SPV is a separate legal entity created to own the asset pool and to issue securities or borrow funds, keeping the assets isolated from the sponsor's other obligations.

Do I need an Indonesian advocate to handle securitization in Bali?

Yes. An advokat licensed in Indonesia can navigate local law, land issues, and regulatory filings, and coordinate with notaries for asset transfers.

How long does it take to close a securitization in Bali?

From initial negotiations to closing, a typical Bali securitization may take 3-6 months, depending on asset quality, due diligence, and regulatory approvals.

What is a fiduciary guarantee, and why is it used in Bali?

A fiduciary guarantee creates a security interest in movable assets or receivables. It is commonly used to secure loans in Indonesian financing, including Bali projects.

How much does a structured finance lawyer in Bali typically cost?

Costs vary by deal complexity, but expect hourly rates ranging from moderate to high, plus potential flat fees for project milestones and due diligence.

Is it possible to securitize Bali hotel receivables?

Yes, subject to asset verification, regulatory approvals, and the ability to structure the receivables into a compliant pool with adequate disclosures.

What are the steps to secure land-backed financing in Bali?

Assess land rights under UUPA, verify title and encumbrances, structure security with fiduciary or other permitted interests, and ensure compliance with agrarian law and OJK rules.

Can foreign investors participate in Bali securitization deals?

Foreign participation is possible through Indonesian-registered entities and compliant structures, with careful attention to land ownership restrictions and currency rules.

What is the difference between securitization and traditional bank lending?

Securitization packages assets and issues securities, transferring risk to investors, while traditional lending remains a direct loan from a bank to a borrower.

Should I hire a local Bali law firm or a national firm with Bali presence?

Both can handle Bali matters, but a local firm with Bali experience often offers deeper knowledge of land rights, local contracts, and permitting nuances.

5. Additional Resources

• Otoritas Jasa Keuangan (OJK) - Official regulator of Indonesia’s capital markets and securitization activities; provides regulatory guidance and registration requirements for structured finance transactions. https://www.ojk.go.id
• Peraturan Go.ID / Peraturan Regulation Portal - Official repository for Indonesian laws including the Capital Market Law and Fiduciary Guarantee Law; static texts and updates are available for reference. https://peraturan.go.id
• Bank Indonesia (BI) - Central bank regulations relevant to payment systems, secured lending, and macroprudential oversight that may affect structured finance transactions in Bali. https://www.bi.go.id

6. Next Steps

1. Define your objective clearly, including whether you plan securitization, asset backed lending, or both. Timeline: 1-2 days.
2. Identify Bali-based advokat or law firms with experience in securitization, SPV formation, and land rights. Timeline: 1-2 weeks.
3. Request a initial consultation to discuss asset pool, security package, and regulatory considerations. Timeline: 1-2 weeks after selecting counsel.
4. Prepare due diligence documents including asset schedules, title reports, and corporate structure information. Timeline: 2-4 weeks.
5. Draft and review term sheets and security documents with your counsel, ensuring alignment with OJK requirements and local Bali needs. Timeline: 2-6 weeks.
6. Coordinate with regulatory bodies and notaries to file filings and complete perfection of security interests. Timeline: 4-8 weeks depending on approvals.
7. Finalize the structure and close with all agreements signed, SPV formed, and securities issued or loans funded. Timeline: 1-3 weeks after approvals.