DENPASAR – 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, marking one of the province’s most assertive legal measures to safeguard agricultural land and prevent illicit property control.
The regulation was signed on February 24, 2026, and is now in force across the island.
Governor Koster emphasized that the new bylaw provides a clear legal framework to crack down on nominee arrangements — a practice in which foreign nationals indirectly control land through local proxies — as well as the conversion of productive farmland into non-agricultural use. Violators face administrative penalties, substantial fines, and potential criminal sanctions.
Protecting Bali’s Agricultural and Ecological Balance
According to Koster, the regulation forms part of Bali’s long-term development vision, Nangun Sat Kerthi Loka Bali, under the island’s comprehensive and sustainable development framework for the next century (2025–2125). The policy is grounded in the local philosophical principles of Sad Kerthi, particularly Wana Kerthi (forest preservation) and Jagat Kerthi (harmonious social and environmental balance).
“This regulation is designed to protect productive land for food crops, horticulture, and plantations, which has been steadily declining,” Koster stated. “It is essential to ensure food sovereignty, economic independence, and ecological balance in Bali.”
The governor noted that nominee-based land ownership has generated significant economic, social, and environmental consequences for local communities, creating legal uncertainty and undermining equitable land control.
Nine Strategic Objectives
The regulation outlines nine key objectives, including:
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Protecting productive agricultural land;
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Ensuring the availability of farmland for food crops, horticulture, and plantations;
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Strengthening food sovereignty;
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Safeguarding lawful land ownership;
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Improving farmers’ welfare and community prosperity;
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Maintaining ecological balance;
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Revitalizing productive agricultural land;
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Providing guidance for regencies and municipalities in controlling land conversion; and
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Preventing land transfers conducted through nominee schemes.
Strict Administrative and Criminal Sanctions
The bylaw establishes comprehensive enforcement mechanisms covering land-use regulation, supervision, community participation, and funding structures.
Administrative sanctions may include written warnings, temporary suspension of activities, site closures, permit revocation or cancellation, demolition of structures, restoration of land function, withdrawal of incentives, and administrative fines.
Importantly, the regulation also introduces criminal penalties in accordance with national legislation for serious violations, including unlawful land conversion and facilitation of nominee arrangements that enable foreign nationals to control land ownership indirectly.
Civil servants found to be involved in violations will be subject to disciplinary measures under applicable laws.
A Strong Signal on Land Governance
With this regulation, the Provincial Government of Bali positions itself to more firmly regulate land use amid growing development pressures and foreign investment on the island. The move signals a broader effort to preserve Bali’s agricultural base and cultural landscape while reinforcing legal certainty in property ownership.
Governor Koster underscored that the regulation is not merely symbolic but a binding legal instrument.
“The law is now in effect. Anyone attempting to illegally control land in Bali will face firm consequences,” he stated.***
