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Zantara AI
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Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppBali DPD member Ni Luh Putu Ary Pertami Djelantik questioned high-return villa marketing during the Indonesia Business Forum on 30 September 2026, according to RMOL's report published on 1 October. She cited pitches offering ROI of 12–20% and criticised speculative buying followed by resale. Read the original report.
She linked that behaviour to accommodation oversupply and pressure on occupancy, while acknowledging that it does not represent every investor. These are her assessments as reported by RMOL, not an audited market-wide finding or a newly enacted restriction.
A return percentage is a starting point for questions. Our recommendation is to ask what the number measures: gross booking revenue, net operating income or cash remaining after financing and other costs. Different definitions can make two apparently similar offers difficult to compare.
This article does not establish a safe or achievable Bali-wide ROI benchmark. It also does not identify any particular developer as fraudulent. The useful response to a strong marketing claim is to request evidence specific to the property.
Ask for the calculation behind the projection, including the assumed nightly rate, occupied nights and the period covered. For an operating property, request records that can support those assumptions. For an unbuilt project, distinguish a forecast from an operating history.
Build a separate cost schedule for management, marketing, utilities, maintenance, taxes, financing and a reserve for repairs. Check which expenses the seller's model includes. Test what happens if bookings are lower or the opening date slips; describe those alternatives as your scenarios rather than predictions.
An income projection and an exit plan answer different questions. Ask how a proposed resale price was estimated, what comparable completed transactions support it, and what costs or contractual restrictions could affect a sale.
Obtain the operating model and supporting records before committing funds. Have an independent adviser review the assumptions and the transaction documents together. Keep unresolved points in writing rather than treating a sales presentation as evidence.
Source checked on 2 October 2026. Reporting basis: RMOL's account of the forum; a primary recording or transcript was not independently verified. Cover: AI-generated editorial illustration of a fictional setting.