Natural hazards and insurance: checking a plot before you sign

This page is for someone who is about to sign for land, a house or a villa in Bali. It sets out which natural hazards the state maps for Bali, how a reader can see what the maps say about his own plot, what the law asks of a building in a hazard zone, and what the law says about insuring a property. It gives the article of each text. It is general information, not legal advice, and a licensed notary has not yet checked it: the page is a Draft.

The page never says whether a place is safe or dangerous. The state sources say how the land is mapped; they cannot say what will happen to a given house. Read the sources for your plot, then put the questions of the last sections to the seller, the notary and the insurer.

The zones of a plan, the setbacks of the coast and rivers, the height limit and the building permits are on other pages and are not repeated: the page on zones and map colours, the page on building permits (section Bali: height, setbacks and architecture), the page on Bali's own rules (section Coast and river setbacks) and the page on the construction contract (section on structure and safety standards). Not on this page: the price of any insurance, any insurer, broker, engineer or builder by name, how to design a building, and what to do after a disaster.

Where a sentence says that we found no text on something, that describes the texts we read, listed under each section and in the last section. It is not a statement about how an office or an insurer acts in practice.

The hazard zones are not zones of their own. The provincial plan lists them among its special provisions (ketentuan khusus): directions for the use of land where a hazard area lies over another zone (Pasal 102, point c). There are seven kinds (Pasal 105(1)), and the maps are annexes XVII.A to XVII.G of the Perda (Pasal 105(9)). Perda Bali 2/2023 was made on 9 March 2023 and we found no change to Pasal 105.

The provincial plan sets the direction. The line for a plot is drawn in the plan of the kabupaten or kota: every paragraph of Pasal 105 ends by saying that the detail is regulated further in the RTRW and the RDTR of the kabupaten or kota. We did not read those plans.

A hazard zone is not a ban on every building. The plan allows, limits or forbids by hazard and by zone, as the table above shows; the flat bans are few and each has its limits. In KRB III there is no building or development, with the exceptions of Pasal 105(3) point e (observation, socio-cultural and nature tourism, disaster-control buildings, infrastructure and public-interest uses in line with a risk study, and conditional mining of rock and non-metal minerals on farmland). In a high ground-movement zone no new residential centre with its supporting facilities may be built (Pasal 105(2) point c item 2), and in a high flood zone no activity for public facilities is allowed (Pasal 105(6) point c item 2). For settlement areas the plan adds two rules: urban settlement in an area prone to natural and geological disaster is developed only with technical requirements, and it lies outside the areas set as volcano hazard zones; and a settlement area must provide disaster evacuation routes and space (Pasal 96, point n items 1 and 2, and point l).

For urban settlement the two articles differ. Pasal 96 point n item 2 puts the development of urban settlement outside the areas set as volcano hazard zones, while Pasal 105(3) allows settlement in KRB I and, at low density, in KRB II, on conditions. Point n concerns urban settlement areas (Kawasan Permukiman Perkotaan); we do not say what it means for other settlement. The text does not say how the two fit. This is a difference between texts: ask the technical office what the plan of the kabupaten says for your plot.

Business plans in a hazard area. The regional government may permit a business plan or activity in a natural-disaster-prone area if it can control the threat with suitable technology, can prevent loss to the people who may be affected, and can prevent pollution or damage to the environment. These conditions are written into the environmental impact document (AMDAL) or the environmental management and monitoring document (UKL-UPL) (Perda Provinsi Bali 12/2023 Pasal 21(3) and (4)).

The government and the regional governments are responsible for disaster management (UU 24/2007 Pasal 5). The law counts earthquake, tsunami, volcanic eruption, flood, drought, storm and landslide as natural disasters (Pasal 1 angka 2). For people in a disaster-prone area, mitigation is done through spatial planning, through the regulation of building, infrastructure and building layout, and through education (Pasal 47(1) and (2)). In quiet times the law lists, among the tasks, disaster risk analysis requirements, enforcement of the spatial plan and technical standards (Pasal 35 points e, f and h). The state therefore meets a hazard through the plan and the building rules, which is why this page looks at both.

Spatial planning law says the same from the other side: spatial planning takes into account the physical condition of Indonesia that is vulnerable to disaster (UU 26/2007 Pasal 6(1) point a, as replaced by UU 6/2023 Pasal 17 angka 2). Its elucidation names, among the disaster-prone natural areas, those prone to volcanic eruption, earthquake, landslide, tidal waves and flood (Penjelasan Pasal 5 ayat (2)).

Bali's own disaster law adds three things. The provincial government sets a hazard map in spatial planning, with threats that include volcanic eruption, earthquake, tsunami, flood, flash flood, landslide, cold lava flow and failure of technology and construction (Perda Provinsi Bali 12/2023 Pasal 21(1) and (2)). Building regulation for mitigation must follow the technical building standards set by the competent bodies (Pasal 38(3)). And the provincial government compiles disaster information, databases and maps, which include the hazard areas, the evacuation sites and the evacuation routes (Pasal 38(5)).

Rights. Every person (setiap orang) has the right to information on disaster management policy (UU 24/2007 Pasal 26(1) point c; Perda 12/2023 Pasal 10(1) point c) and to compensation for a disaster caused by construction failure (UU Pasal 26(3); Perda Pasal 10(3), which says failure of construction or technology). The Perda adds a right to aid or a payment for damage to a building affected by a disaster, in line with the financial capacity of the regional government, to be set by a governor's regulation (Pasal 10(4) and (5)). The articles say every person and name no nationality; we found no text that excludes a foreigner, and no text that says how much the aid is. We did not find the governor's regulation. Building failure in the construction law is on the page on the construction contract.

Earthquake. The building regulation says the structure must be planned strong, stable and serviceable over its design life, and that the design must take the design earthquake into account in line with the earthquake risk and the performance level of the structure (PP 16/2021 Pasal 29(2) and (6)). The page on the construction contract (section on structure and safety standards) sets out which standards the texts name, SNI 1726:2019 among them, and that we found no regulation that makes them mandatory for a private house. It is not repeated here.

Emergency facilities. PP 16/2021 Pasal 54(1) requires facilities and equipment for safety in an emergency such as fire, earthquake and flood, but only of a building in the category that its paragraph is about: a building above and/or inside the ground and/or water and/or public infrastructure or facilities (Pasal 14 point c; Pasal 51(1) and (2) point c). The article lists escape routes and emergency doors, emergency stairs or lifts, compartments, emergency lights and signs, detection, alarm and emergency communication, emergency power, a control room, smoke control, fire extinguishers, and construction that is fire-resistant, earthquake-resistant and/or waterproof (Pasal 54(2)). We did not find where the texts draw the line between this category and an ordinary house, and the article does not say which items apply to a single house: ask the technical office what the PBG requires.

A small house. A single-storey house of at most 72 m2 or a two-storey house of at most 90 m2 may have its technical drawings made by the applicant, but then the drawings must apply the basic earthquake-resistance provisions (ketentuan pokok tahan gempa), or use a prototype design, or be planned by a service provider (PP 16/2021 Pasal 252(4)). The articles we read do not define the basic provisions. The page on building permits explains the PBG route.

Coast, rivers and slopes. The setbacks of the coast and of rivers and the rules for ravines (steep slopes) are on the page on building permits (section Bali: height, setbacks and architecture) and on the page on Bali's own rules (section Coast and river setbacks); they are not repeated. A ravine setback is a distance rule for a steep slope. The ground-movement zone of the plan is a different thing, found on the hazard map above.

Hazard zones. Where the plan marks a hazard zone, its directions apply to the building with the conditions in the table above, for example a risk analysis, or building standards in line with a risk analysis. In KRB III building and development are not allowed, with the exceptions listed in the table above. The KKPR and the PBG are where a use and a design are checked against the plan; the page on building permits sets out both.

Is it compulsory? We found no text that makes insurance of a private house or villa compulsory. The insurance law lets the government set up compulsory insurance programmes (UU 40/2014 Pasal 39A, inserted by UU 4/2023 Pasal 52 angka 15); we found no programme for the owner of a private house. The tourism law's rule on insurance for high-risk tourism activities is on the page on villa management.

Who may insure. An object of insurance in Indonesia may be insured only with an insurer that holds an OJK business licence, unless no insurer in Indonesia can carry the risk or is willing to cover it (UU 40/2014 Pasal 25). On our reading a house in Bali is such an object. The page on health insurance (section Private cover) says how to read a licence, what OJK's directory shows and where to complain.

The standard policies. OJK's circular calls the standard fire policy PSAKI (Polis Standar Asuransi Kebakaran Indonesia), issued by the association of general insurers (AAUI). It covers property against fire, lightning, explosion, aircraft impact and smoke, known by the letters FLEXAS (SEOJK 6/SEOJK.05/2017, section I, point 8). The standard earthquake policy is PSAGBI. Earthquake insurance covers loss or damage directly caused by earthquake, volcanic eruption, the fire and explosion that follow an earthquake or an eruption, and tsunami (points 10 and 11).

What a property policy may add. OJK's classification of the property line (PADK 46/PADK.05/2025 of 23 December 2025, annex II.B point 1) names, as extensions of cover: earthquake, meaning protection against damage or loss caused by earthquake and volcanic eruption, including what follows, such as collapse of the building, fire after the earthquake, liquefaction or tsunami; all risks, meaning every risk except those the policy excludes; terrorism and sabotage; business interruption; and catastrophe cover for large, rare disasters. For flood, storm and water damage the circular says that insurers use the endorsement code 4.3A (flood, storm, tempest and water damage) that the association issued and OJK approved (SEOJK 6/2017, annex II, Table II.A, additional provisions point 1).

Rates and what drives them. Insurers that sell property insurance must apply the rates for the cover that OJK sets (SEOJK 6/SEOJK.05/2017, section II, points 1 to 3). Two tables matter to a buyer in a hazard zone. The earthquake rate depends on one of five zones that OJK's table assigns to each kabupaten and kota (annex III, Table III.D) and on the way the house is built: a frame of steel, wood or reinforced concrete, or another construction (Table III.A, line for a dwelling house, occupation code 2976). The flood rate for property outside Jakarta, Banten and West Java depends on whether the property has flooded before and when: never or more than 6 years ago, within the last 6 years, within 3 years or within 1 year (annex II, Table II.A). The tables date from January 2017. They are rate tables, not hazard maps, and we found no OJK text that replaced them by 16 October 2026.

The words that decide a claim. OJK's circular defines the deductible (risiko sendiri) as the part of each approved claim that the insured bears, and the full value (nilai penuh) of an object as its actual or sound value just before the loss. Where the value declared in a loss-limit policy is lower than the real value, the pro rata (average) rule applies when a claim is made (section I, points 12 to 14). For earthquake cover the circular sets the deductible as a share of the total sum insured, by zone (annex III, deductible table). Ask for the sum insured, how it was set and the deductible in writing.

Conduct and disputes. An insurer must give true, not misleading information on risks, benefits, duties and costs to a prospective policyholder, and must handle claims through a process that is fast, simple, easy to reach and fair; it may not act so as to slow the settlement or payment of a claim (UU 40/2014 Pasal 31(2) to (4), as amended by UU 4/2023). It must belong to a mediation body for disputes (Pasal 54(1)). The page on health insurance says how to reach OJK. UU 4/2026, in force since 17 June 2026, amends UU 4/2023 in this part only at Pasal 20 and Pasal 53 of UU 40/2014 (angka 8a and 19 of Pasal 52), deletes Pasal 72A of UU 40/2014 (and inserts a Pasal 52A into UU 4/2023 itself, on another law); it leaves Pasal 25, 31, 39A and 54 as cited here.

Information for a claim. The law on BMKG lists, among its special information services, seismicity maps for construction planning and geophysical information for insurance claims (UU 31/2009 Pasal 35(1) points g and h).

A lender may ask for insurance, but we found no text that makes insurance a legal condition of a loan or a mortgage. The Hak Tanggungan law lets the deed carry a promise that the holder receives all or part of the insurance money that the grantor receives, to repay the debt, if the mortgaged object is insured (UU 4/1996 Pasal 11(2) point i). That clause assumes that insurance may exist; it does not require it. Whether a bank asks for cover, for which risks and in whose name is the bank's own credit condition, and is market practice, not a rule we found. Ask in writing before you sign. The page on financing covers the Hak Tanggungan and whether a bank lends to a foreigner.

Perpres 75/2021 of 13 August 2021 sets up a shared fund for disaster management (Dana Bersama), managed by the finance minister. It pays out to ministries and agencies, regional governments, community groups that the regional government has verified, and suppliers (Pasal 7(1) and (2)). It can buy insurance where a ministry, a regional government or the fund unit is the policyholder, and the claim money goes back to the fund unit to repair, rebuild or replace the insured object (Pasal 10(3) to (5)). No article we read pays an individual owner, and it is not a policy that you can buy.

The aid for damaged buildings in Bali's disaster law and the right to compensation for construction failure (above) are not insurance either. The first depends on the finances of the regional government, the second needs a construction failure. Neither promises a payment for a particular building.

Where there is no text. What an insurer excludes, whether it will insure a house inside a hazard zone, waiting periods, and what happens to a policy when the property changes hands are not regulated by any text we read: the policy wording decides. Ask for it before you pay.

The seller or the developer. In which hazard zones, if any, does the plan put the plot or the project, and in which article? Has the plot or the building been damaged by an earthquake, a landslide, a flood or a wave, when, and where are the repair records? Has the property flooded, and when? An insurer will ask. For a project not yet built: which hazards did the developer's risk analysis name, where the plan asks for one? Where is the nearest evacuation route and gathering place named by the plan or by BPBD? Ask for the answers in writing.

The notary or the PPAT. Ask the technical office for the written statement of the plan on the plot, with the hazard zone if there is one (the page on zones and map colours says where to look). Is the plot inside a setback or on a ravine line? Does the PBG or the building plan say how the earthquake design was done? Ask the notary to keep the seller's written answers with the file of the deal.

The builder or the engineer. Which earthquake standard and which hazard data were used in the design, and who signed the structural calculation? On a slope: is there a geotechnical study, a drainage plan and retaining walls? Near a coast or a river: where is the setback line? In a volcano zone: is there a volcano risk analysis? The page on the construction contract lists questions for the builder and the supervisor.

The insurer or the broker, before you pay. Is the company licensed and the broker or agent registered with OJK? What does the policy cover besides fire, and are earthquake, eruption, tsunami, flood and landslide inside it, or only in an extension? What is the sum insured, how is it set, what is the deductible, and does the average rule apply? What does the insurer ask about the flood history of the property? Ask for the product summary and the full wording in writing.

The bank, if you borrow. Does the bank require insurance, against which risks, and who is named to receive the claim money (UU 4/1996 Pasal 11(2) point i)?

Hazard zone of the plot read in the plan of the kabupaten and in InaRISK; for a volcano, the KRB zone read on the PVMBG map; PBG and SLF seen; the policy wording, the sum insured and the deductible seen. What you cannot read yourself, ask your notary to check.

The plans of the kabupaten and kota (RTRW and RDTR), and the annexes XVII.A to XVII.G of Perda Bali 2/2023 as maps: not read. We read the text of Pasal 96 and 105, not the lines on the maps. The provincial portal lists the maps by theme but says it is built in stages, and its list shows six hazard maps although Pasal 105(9) names seven annexes.

For urban settlement, how Pasal 96 point n item 2 and Pasal 105(3) fit together: the texts differ (see above).

Whether any text makes SNI 1726:2019 mandatory for a private house (the page on the construction contract says we found none), and what the basic earthquake-resistance provisions of PP 16/2021 Pasal 252(4) are: the articles we read do not define them.

The governor's regulation on aid for damaged buildings (Perda Bali 12/2023 Pasal 10(5)) and the legal status of the BNPB study of Bali for 2022 to 2026: not found. BPBD Bali wrote on 19 June 2024 about an agreement to legalise two other documents, the hazard study of Bali for 2023 to 2027 and the disaster plan for 2024 to 2028, as documents set by the regional head; we did not find a decree for them and did not read them.

Whether a seller must tell a buyer that a plot lies in a hazard zone: we found no such duty for a private seller in the texts above. The consumer protection law and the rules on developers may apply to a business seller; we did not read them for this page.

The wording of the standard policies (PSAKI, PSAGBI and the endorsement 4.3A) as issued by the association: not read. We read OJK's circular and its annexes and OJK's classification of the lines, not the policies themselves. We found no OJK text that replaced the 2017 circular.

Whether any insurer in Bali covers a house in a volcano, tsunami, abrasion or ground-movement zone, and on what terms: market practice, which no text we read regulates.