The Bali Provincial Government has introduced criminal sanctions to control the conversion of productive agricultural land into villas and commercial properties.
Bali Governor I Wayan Koster signed a Regional Regulation (Perda) on the Control of Productive Land Conversion and the Prohibition of Nominee Land Ownership Transfer on Tuesday, 24 February 2026.
The regulation aims to protect productive land, particularly rice fields linked to Bali’s traditional irrigation system known as the subak. Authorities say the measure is intended to safeguard food security, economic stability, and ecological balance.
“To support the achievement of food sovereignty, economic independence, and ecological balance, it is necessary to strictly regulate the control of the conversion of productive land,” Koster said in an official statement received by Kompas.com on Thursday, 26 February 2026.
The regulation introduces criminal penalties for individuals or investors who convert productive rice fields into villas, commercial buildings, or other developments.
Violators may face permit revocation, administrative fines, and criminal sanctions in accordance with existing laws. Authorities may also require buildings constructed on converted land to be demolished in order to restore the land’s original function.
The regulation is intended to strengthen previous policies that were considered weak in enforcement.
Nominee Land Ownership Also Targeted
The regulation also prohibits nominee land ownership, a practice in which Indonesian citizens hold land titles on behalf of foreign nationals.
Authorities say the practice has allowed foreigners to control land in Bali despite legal restrictions.
Koster said nominee arrangements have disrupted the social and economic structure of local communities.
“This pattern has become the main entry point for land colonisation in Bali’s coastal and highland areas,” he said.
Under the new regulation, sanctions apply not only to investors but also to intermediaries and facilitators involved in such arrangements.
The rule also applies to public officials.
State Civil Apparatus (ASN) who are proven to have participated in or facilitated illegal land conversion may face specific sanctions under the regulation.
