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Bali Enacts Regulation to Control Land Conversion and Ban Nominee Ownership Practices

Siluh Wiwindari

Published :

UTC+8

Bali Governor Wayan Koster officially signs Regional Regulation No. 4 of 2026 on the control of productive land conversion and the prohibition of nominee-based land ownership in Denpasar on Tuesday (Feb 24, 2026).
Bali Governor Wayan Koster officially signs Regional Regulation No. 4 of 2026 on the control of productive land conversion and the prohibition of nominee-based land ownership in Denpasar on Tuesday (Feb 24, 2026).

DENPASAR, DEWATA.NEWS – Bali Governor Wayan Koster has officially enacted Regional Regulation (Perda) No. 4 of 2026 on the Control of Productive Land Conversion and the Prohibition of Nominee-Based Land Ownership, signed on Tuesday (Feb 24, 2026).

The regulation serves as a legal instrument to curb the conversion of agricultural land and prevent land ownership arrangements using nominee schemes, a practice often associated with foreign control of land through local proxies.

Governor Koster stated that the regulation forms part of the province’s long-term development framework under the “Nangun Sat Kerthi Loka Bali” vision and the Bali Era Baru 2025–2125 roadmap, which emphasizes environmental protection and social balance rooted in local values.

According to the governor, the regulation aims to protect productive land used for food crops, horticulture, and plantations, which has seen declining support capacity in recent years.

“This regulation is established to protect productive agricultural land in Bali, to support food sovereignty, economic independence, and ecological balance by controlling land conversion,” Koster said.

He added that nominee-based land ownership transfers have created economic, social, and environmental impacts in Bali, requiring clearer legal guidance and prohibitions to ensure legal certainty.

The regulation outlines several key objectives, including:

  • Protecting and ensuring the availability of productive agricultural land
  • Supporting food sovereignty
  • Safeguarding land ownership rights
  • Improving farmer welfare and community prosperity
  • Maintaining ecological balance
  • Revitalizing productive agricultural land
  • Providing guidance for local governments in implementing land conversion controls
  • Preventing land ownership transfers through nominee practices

Under the regulation, the Bali Provincial Government is authorized to oversee and control land conversion to ensure agricultural land remains dedicated to food crops, horticulture, and plantation use. It also explicitly prohibits nominee-based land ownership arrangements.

The regulation includes provisions on supervision, community participation, funding, and enforcement mechanisms.

Administrative sanctions for violations may include written warnings, temporary suspension of activities, site closures, permit revocation, permit cancellation, demolition of buildings, restoration of land function, revocation of incentives, and administrative fines.

“In addition to administrative sanctions, criminal penalties may also be applied in accordance with applicable laws,” Koster said.

The regulation also contains provisions for disciplinary measures against civil servants found to be involved in violations, in accordance with national regulations.

Provincial authorities stated that enforcement and monitoring will be implemented across Bali to ensure compliance and protect the island’s agricultural and environmental sustainability.

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