INVESTMENT OPPORTUNITIES
Foreign investment flows drive growth in the Indonesian real estate sector.
Bali’s luxury real estate market has been an important recipient of investment over recent years, as booming tourist numbers have supported property developments. On the back of strong international visitor arrivals, the island has seen its property prices increase at unprecedented rates in recent years, with villas priced at around $1100 to $2300 per sq meter in 2019. Bali’s supply of villas grew by 21% in 2022, during which time the average asking price increased by 39%, despite a 69% decrease in the absorption rate.
​
Given the influx of foreign arrivals, around 80% of Bali’s economy is dependent on tourism. At the height of property investment, some popular areas such as upscale beach resort area Seminyak, saw prices increase by 10 times in only a few years. Estimates from the Global Property Guide suggest that a four-bedroom villa built on freehold land in nearby Berawa Beach in 2019 for $500,000 was worth $1.8m in 2023.
OVERVIEW
Economy
As far as foreign investors are concerned, Indonesia is moving from red tape to a red carpet. The Indonesia Government has introduced significant reforms that make investment in Indonesia more attractive and simpler. The Omnibus Law and the subsequent 49 implementing regulations certainly provide a more conducive environment for foreign direct investment. It also provides a significant momentum in the post covid-19 economic recovery for investors to start planning their investment planning. Further efficiencies and incentives can be expected. Supported by dynamic and vibrant young demography, embracing digitalization with a growing number of innovative starts up and tech unicorns, will make Indonesia continue to grow and emerge faster and stronger in the post covid-19 situation.
​
With sustained political stability, vast resources and strategic location in the world’s fastest growing economies at the center of the Asian Century, Indonesia is indeed ready to welcome investors and businesses.
Growth Signals Detected in Indonesia’s Investment Report for Q2 2022.
The World Bank's Indonesia Economic Prospects report for June 2022 predicts that Indonesia's economy would grow 5.1 percent in 2022 and 5.3 percent in 2023, as the pressures of deteriorating global economic conditions, increasing inflation, and tightened external credit begin to weigh. The Investment Coordinating Board of Indonesia has released the second quarter investment realization report. Foreign direct investment has climbed by 35.5 percent year on year to IDR 163.2 trillion, with the lion’s share coming from Singapore (27.7 percent), China (20 percent), and Hong Kong (11.9 percent).
The top three industries attracting foreign investment are metal goods and equipment manufacturing (27.9 percent), mining (11.1 percent), and housing-industrial estate (8.8 percent). Central Sulawesi, West Java, and North Maluku are the top three places in Indonesia where foreign investors are putting their money this quarter.
TOP INVESTMENT DESTINATION: 2023/2024
Why are foreigners Investing in Lombok instead of Bali this year?
Lombok is on the precipice of becoming the next Bali for investors! Discover why investing in Lombok is gaining investors’ attention in 2022. For decades, tourists have known Lombok as Bali’s sister island, but that’s not its only identity. In the past few years, Lombok has gained significant attention from foreign investors. Here are a few reasons why people from around the world are investing in Lombok.
HIGHLIGHTS
Digitization is accelerating the growth of MSMEs in Indonesia
Indonesia is making rapid progress towards digitization as the country’s e-commerce sector depends heavily on the mobile-first approach. By the end of the year, the country will have 83 percent internet users with an average yearly spend of USD 620. This creates a massive opportunity for investors to invest in Indonesia because of this unique customer behavior. Indonesians are among the world’s most active social media users, with a rapidly growing digital ecosystem that includes online commerce, ride-sharing services, and financial technology services.
Indonesia is set to become the next long-term destination for Digital Nomads
The Indonesian government is said to be launching a special Digital Nomad Visa in an effort to entice more overseas employees to the country. For a long time, digital nomads have been flocking to Indonesia, particularly Bali. Because of its coastline, vibrant culture, and good standard of living, Indonesia is a top location for freelance workers contemplating temporary or permanent relocation.
Investment opportunities in medical tourism in Bali.
The medical tourism industry in Bali has grown steadily at a rate of 10% per year.VIVO ASIA offers services to establish medical tourism businesses in Bali, with various investment opportunities available. Bali’s growing economy, driven by the tourism and hospitality sectors, has created a favorable environment for investors to explore various business options. According to the Bali Health Agency, the medical tourism industry has experienced steady growth in Bali over the past few years, with an average growth rate of around 10% per year.
Legal considerations for starting a rehabilitation center in Bali
The legal considerations for rehabilitation centers include obtaining licenses and permits and meeting ownership requirements. Additionally, it also includes fulfilling the minimum capital requirement to ensure regulatory compliance. VIVO ASIA assists investors to understand and build a medical tourism business in Bali. Our experts offer a range of services to start a business in the industry. VIVO ASIA helps investors register their businesses in Bali, including securing all necessary permits and licenses from local authorities. It also registers businesses with relevant government agencies.
A Guide to Renting out Villas in Bali as a Foreign Investor.
Run a villa rental business in Bali legally and safely. Here's what you need to know to protect your investment and avoid unnecessary losses. Renting out a villa in Bali is one of the most common business activities among foreigners on the island. However, misinformation and a lack of experience often leads to unnecessary problems for foreigners renting out villas in Bali. This article will explain how you, as a foreigner, can rent out a villa in Bali legally.
Protecting and Maximizing Your Real Estate Investment
With over 15 years of expertise and a strong reputation built on trust and quality, we are confident in our ability to deliver world-class real estate projects to our clients. We strive to exceed expectations and ensure that every client has access to exceptional real estate opportunities in one of the world’s most sought-after destinations.
Rental Management
This includes tenant search, drafting rental contracts, collecting rent, and resolving any disputes.
​
Maintenance Management
It involves organizing repairs and renovations as needed, as well as coordinating service providers to keep the property in good condition.
Financial Management
This includes account management, financial reporting, and investment profitability analysis.​
​
Sales Management
This includes property promotion, sale terms negotiation, and transaction coordination. It involves setting sales targets, creating marketing & sales strategies.
Environmental Management
This includes implementing environmentally-friendly practices, reducing energy costs, and promoting an eco-label for your property.
Staff Management
It involves recruiting, training, scheduling, and monitoring of staff to ensure that they provide high-quality services to clients.
​​
WHY BALI?
What makes Bali so attractive to investors?
Bali is never going out of fashion. Stable increase in tourist arrivals since early 2000s. Newly built Ngurah Rai Airport is capable of handling 25 million arrivals annually.
Growing market
Over 20 years of steady 5 - 7% annual growth of land prices in all main regions of Bali.
Transparent regulation
Indonesia's legislation is strongly aligned towards digitalization and establishment of a safe harbor for investors.
Domestic tourism
Indonesia is #1 economy in South-East Asia and world 4th biggest nation. Bali is it's main domestic tourism destination.
Low entry & High ROI
Bali offers investment opportunities for diverse budget ranges and exit strategies.
Infrastructure
Western-grade hospitals, schools, malls, and supermarkets are present in all main destinations across the island.
Low maintenance
With the right management company you can peacefully enjoy profits knowing your property is well taken care of.
Explore Investment opportunities
With Bali Green Investment, we will show you how to buy property in Bali the safe way.
Building Surveys
Want to be sure you are buying a property that will last? Our experienced partners will perform a throughout survey and prepare a detailed report for you.
Due Diligence & Legal Support.
We work with the most reliable and reputable notaries in Bali and will provide full guidance during acquisition of your investment property.
​
Company Setup & Support
Vivo Asia provides complete company setup services, starting from advising you on which legal entity type to choose, up to acquiring all the required permits.
Eco-Luxury Investments
Bali Green Investment offers unparalleled land investment opportunities in Bali, Indonesia. Benefit from capital appreciation and invaluable lifestyle returns, while planting seeds for a sustainable future.
Property Management Experts
Trusted vacation rental investment consultants and reliable partners for all Bali property services, offering end to end solutions for real estate investors, landlords and tenants.
​
Interior Design and Airbnb setup
Our interior designers and decorators will turn your empty property in to Vacation Rental cash-cow in no time.
​
​
​