This is How Road Status Can Double or Kill Your Property Value
Before buying land or property in Bali, one of the most important but often overlooked factors is road access. A property without legal and secure access may become landlocked, lose its value, and even face development restrictions. Whether the road is public, village-managed, or private, buyers must confirm the legal status through certificates, easement agreements, and village acknowledgment. This guide explains why road access matters, common problems buyers face, and how to secure your rights to protect your investment in Bali’s fast-growing real estate market.
When buying property in Bali or anywhere in Indonesia, one of the most overlooked but most critical aspects is the status of road access. Whether you are investing in land, building a villa, or purchasing a house, the legal status, accessibility, and quality of the road that connects to your property can determine not only its value but also its usability. Road access is not just about convenience; it is a legal foundation that protects your ownership rights, future developments, and long-term investment returns.
In this guide, we explore in detail why understanding the road status before buying property is essential, what risks can arise if ignored, and how to verify the legitimacy of road access rights. We will also add real-world scenarios, practical checklists, and insights into how road issues affect Bali’s property market.
Road Access in Property Law: Why It Matters
In property transactions, land is not just defined by its size and certificate. Accessibility is equally important. A piece of land surrounded by other plots with no legal road access can become landlocked, drastically lowering its value and usability.
Imagine buying a villa plot in Canggu or Ubud, only to realize later that the road leading to it is private, controlled by a neighbor, or worse, non-existent in legal terms. Without secure road access, construction permits (IMB or PBG) may be rejected, utilities may be harder to install, and resale value drops significantly.
The Types of Road Status in Indonesia and Bali
Understanding road classifications helps prevent costly mistakes. In Bali, roads can fall into these categories:
- Public Roads (Jalan Umum): Managed by the government, open to everyone. Safe for property access.
- Village Roads (Jalan Desa): Managed by the village authority (desa adat or desa dinas). Usually safe but must check for official recognition.
- Private Roads (Jalan Pribadi): Owned by an individual or company. Access may require formal easement agreements (Hak Jalan).
- Right-of-Way (Hak Lintas or Hak Jalan): Legal easement registered on land titles that guarantees access across neighboring land.
- Unregistered Roads: Paths in daily use but not recorded legally. Risky, as access can be blocked anytime.
Common Problems Buyers Face with Road Access
Here are some frequent road-related issues in Bali’s property market:
- Neighbors blocking access due to disputes
- “Shared” private roads without written agreements
- Road width not meeting minimum government standards for building permits
- Developers selling plots without securing permanent road easements
- Land certificates not updated with road access notes
How Road Access Influences Property Value
A property with secure, wide, and legal road access is significantly more valuable than one without.
Road Type | Impact on Property Value | Risks |
---|---|---|
Public Road | High demand, strong value growth | Very low risk |
Village Road | Stable value, moderate demand | Ensure official recognition |
Private Road | Lower value if no legal easement | High risk of disputes |
No Road | Nearly worthless for development | Landlocked, no resale |
Legal Instruments Governing Road Rights
Key legal tools include:
- Sertifikat Hak Milik (SHM): Should show road access if properly registered
- Hak Guna Bangunan (HGB): Requires legal access for approval
- Akta Perjanjian Hak Jalan (Easement Agreement): Notarized document granting access
- Village Acknowledgment Letters: For confirming traditional/village-managed roads
Due Diligence: How to Check Road Access Legitimacy
Steps before buying property:
- Verify road status in the land certificate (BPN records).
- Check zoning maps and public road plans.
- Confirm with village authorities about road ownership.
- Ask the seller for a notarized easement agreement if access is private.
- Visit the site physically—roads on paper may not exist in reality.
Road Access Issues Specific to Bali’s Market
Bali’s unique challenges include:
- Traditional (adat) vs government (dinas) road disputes
- Narrow rice field paths sold as “roads” by developers
- Increased foreign interest in landlocked but cheap plots
- Road upgrades often dependent on village contributions
Case Studies: Buyers Who Ignored Road Status
- A foreign buyer in Uluwatu purchased a cliff-front plot without legal access. Neighbors demanded monthly “fees” for passage.
- A villa project in Canggu stalled because the private road leading to it was only 2 meters wide, failing to meet permit standards.
- Investors in Ubud lost resale opportunities because road access was later blocked by a land dispute.
What Foreign Buyers Need to Know
Foreigners often assume road access is guaranteed. In reality:
- Many villas operate on shaky road arrangements.
- Leasehold agreements must include clear road access clauses.
- Without notarized easements, future disputes can void usage rights.
How to Secure Road Access Rights
- Always include road access clauses in contracts.
- Use notaries to draft and register easement agreements.
- Negotiate with neighbors early if road is private.
- Work with experienced property agents familiar with Bali’s road laws.
The Role of Notaries, Villages, and BPN
- Notaries (PPAT): Legalize road easement agreements.
- Village Authorities: Can issue acknowledgment letters.
- BPN (National Land Agency): Registers road easements officially.
Road access is not just a detail—it is the lifeline of your property. Without it, your dream villa may remain landlocked, unsellable, or even unusable. By conducting thorough due diligence, securing legal easements, and working with trusted professionals, you safeguard your investment and ensure your property in Bali holds long-term value.
Additional Buyer Checklist (20 Key Points)
- Confirm road width (minimum 3 meters for cars).
- Ensure road access is not just verbal but documented.
- Check if IMB/PBG permits have been issued before.
- Confirm road classification with BPN.
- Ask neighbors about road disputes.
- Inspect physically, not just on maps.
- Ensure road leads to public infrastructure.
- Verify village or adat ownership.
- Check drainage and maintenance responsibilities.
- Ensure access for construction trucks.
- Consider resale impact.
- Add easement clauses in contracts.
- Ask for notarized agreements.
- Confirm with both desa adat and desa dinas.
- Verify zoning compliance.
- Ensure long-term accessibility.
- Avoid landlocked properties.
- Clarify responsibility for repairs.
- Check historical disputes.
- Use professional legal support.