To IMB or Not IMB? Is Not a Valid Question

•••••
Facebook
Twitter
LinkedIn
Buying property in Bali
Image by Marten Newhall on Unsplash.

A couple of weeks ago, I drove out to my first ever meeting with a prospective vendor. I’ll admit I was a bit nervous and maybe I didn’t make an ideal first impression, but the real problem wasn’t how I arrived I’m oddly relieved to say, the problem was with the vendor and his mindset.

The first red flag popped up just after we’d walked the property. He seemed to be genuinely interested in having me sell the house, so I presented a copy of our standard listing agreement. Now I don’t have a lot of experience with vendors, this was my first time remember, but I would have thought that if a prospective seller says something along the lines of “it’s my personal principle to never sign anything legally binding with an agency,” any agent worth their salt would be curious, even suspicious, as to why that is. Sure, he was interested in having me sell his house, just not as a Seven Stones agent? Spider senses began to tingle.

We stepped out of the property. Before I could get to the nuts and bolts of why he wouldn’t sign an agreement, I noticed there wasn’t an IMB plate tacked onto the front of the property. The IMB by the way, is proof of a building permit and all properties that have them, display them. I figured this was the reason he was so reluctant and I was half expecting an excuse.

But I asked anyway, because that’s what I do.

“So have you got the IMB for this house?” I asked.

“Nope.”

He wasn’t even trying to deny it! There wasn’t an ounce of hesitation when he openly admitted his property was illegal.

Well, this is Bali and every so often you’ll come across these types: people who are clearly violating Indonesia’s laws and regulations, but aren’t very much afraid of admitting it because they know – and you should also know – that just about half of every law passed in this country is an ethical grey area. One needs to look no further than the way people drive on the island to understand that!

He went on to explain, “it’s pretty much impossible for me to get an IMB out here …”

Here it comes I thought – the justification.

“… because this land, that I bought and built on, lies on a green belt.

He wasn’t even trying to give a bureaucratic excuse. He was just telling me more about how illegal his place was.

So, not only did he build a house that he’s now trying to sell, perhaps to some unsuspecting folks who would have to deal with any future consequences to his actions, he also purchased and developed a piece of land that’s supposed to be conserved as a farmer’s beautiful plot of rice paddies! And he knew it!

I was gobsmacked.

For some people there are attractions and advantages of developing properties illegally here in Bali. I guess it makes sense if you’re that way inclined. The process of getting an IMB approved by the government can be very tedious, consuming not only a lot of time and energy, but also money. And the money is an important consideration especially considering our government has a bad rep amongst its own people as well as expats and tourists.

There still seems to be a correlation between the amount of money you give to an official and the likelihood of having a permit approved (or not) in a timely manner. My colleagues tell me a few years ago the vendor of this particular story could have taken a brown envelope stuffed with cash to a government official (or four depending on the size of the envelope) and he would have got the IMB, illegal or otherwise, in a green belt or not, quite easily.

Thankfully, over the last few years the government, both local and national, has cleaned up its act (or at least tried to) and it’s no longer the wild-west. There are proper procedures in place, including zoning, and there are people like me who see the advantages and benefits of rules and regulations and want to see things change for the better.

From where I stand, buying land illegally and building illegally is wrong. There should be no question of doing either. It doesn’t matter if it makes prices more ‘competitive.’ It doesn’t matter if it’s dirt cheap. It’s wrong. Plain and simple.

I’ll show myself out.

If you’d like to learn more about owning property in Bali and Indonesia get in touch with us today through hello@sevenstonesindonesia.com

Table of Contents

Related Post

Williams Media
The Good News Just Keeps On Coming!
Bali’s Property Market in 2019 and Beyond – 2/2
Real estate in Bali
Market Forces in Bali Real Estate

Popular Tags

To maintain our professional standard, we have established strong presence in the center of Jakarta and Bali to serve you better. Visit us at :

Jakarta
Noble House, 9th floor unit 2B
Jl. Dr. Anak Agung Gde Agung, Kav E.4.2 no. 2
South Jakarta – 12950

Bali
Jl. Sunset Road No. 777
Seminyak, Bali – 80361 “

We’re committed to being accessible. Find our offices in Jakarta and Bali, staffed with local experts who understand your unique needs. Also we extend our reach with our collaborative partners.
Seven Stones Indonesia
Jl. Sunset Road No.777, Seminyak, Kec. Kuta, Kabupaten Badung, Bali 80361
Seven Stones Indonesia Jakarta
Noble House, 9th Floor, Jl. Mega Kuningan Barat, RT.5/RW.2, Kuningan, Jakarta 12950
Monday Co-Working
Jl. Toya Ning II, Ungasan, Kec. Kuta Sel., Kabupaten Badung, Bali 80361
B Work Bali
Jl. Nelayan No.9C, Canggu, Kec. Kuta Utara, Kabupaten Badung, Bali 80361
Show Places
Seven Stones Indonesia
Jl. Sunset Road No.777, Seminyak, Kec. Kuta, Kabupaten Badung, Bali 80361
Open in Google Map
Seven Stones Indonesia Jakarta
Noble House, 9th Floor, Jl. Mega Kuningan Barat, RT.5/RW.2, Kuningan, Jakarta 12950
Open in Google Map
Monday Co-Working
Jl. Toya Ning II, Ungasan, Kec. Kuta Sel., Kabupaten Badung, Bali 80361
Open in Google Map
B Work Bali
Jl. Nelayan No.9C, Canggu, Kec. Kuta Utara, Kabupaten Badung, Bali 80361
Open in Google Map
×

Geocoding Error Occured.

Tried to Geocode:

Error Type:

Please be sure to follow the tutorial on how to setup the Google APIs required for the Advanced Google Map Widget.

Google Map API Key Tutorial
Please enable JavaScript in your browser to complete this form.
Name

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.