The Governor of Bali, Wayan Koster, explained the strategy for foreigners to own land or assets in Bali.
Koster said that this foreigner deliberately married an Indonesian citizen, especially a Balinese to get around the rules that limit land rights by foreigners in Indonesia.
“I need to remind you and we have to take this seriously. These locals are used by married foreigners, to make it easier to transfer their interests, namely asset ownership,” said Koster in Denpasar, Wednesday, 28th of June, 2018.
“And this is dangerous for Bali in the future. Married for a while, and then divorced. Married and divorced for a while. In the end, we will face problems going forward. The land is already owned,” he said.
This was conveyed by the Governor of Bali Wayan Koster when giving answers to the faction’s general opinion in the Raperda regarding the future direction of Bali’s development, the 100 years of Bali in the New Era which is 2025-2125 at the 23rd plenary meeting in Bali.
Koster admitted that he was very concerned about this phenomenon because it could damage the morals and cultural heritage of Bali.
“The use of local Balinese residents by foreigners is increasing for the benefit of controlling assets, which has implications for the threat of increasing land ownership and function, as well as degradation of community morale,” he said.
Koster will gather regents and mayors throughout Bali to discuss this issue.
He plans to prohibit foreigners from owning assets in this mode in Bali. They can do business but with a system of cooperation or renting land from residents.
“Prohibit foreign nationals from owning or controlling land in Bali, directly and indirectly, namely by taking advantage of their marital status with local Balinese krama. We must control this,” he said.
This phenomenon was also mentioned by the Bali Police Chief, Inspector General Putu Jayan Danu Putra, at the New Era Bali Tourism Coordination Meeting at the Bali Governor’s Office, Wednesday, 31st of May, 2023.
He revealed that there were several foreign investors or foreigners who borrowed the names of locals to build illegal villas in Bali.
Putu Jayan said the activity of borrowing names or nominators was to get around the rules that limit land rights by foreigners in Indonesia.
The wrong rule of law regarding the Nominee Agreement is contained in Article 9 paragraph (1) Jo. Article 21 paragraph (1) Law no. 5 Years About Agrarian Affairs.
This article states that only Indonesian citizens have a complete relationship with the earth, water and space, and have property rights.
“We need to know that investors or foreigners often borrow Indonesian names, especially Balinese names. This is prohibited by statutory regulations where this agreement is null and void, and has no power,” he said at the time.
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