Bali court extends Badung–Bali Towerindo deal to 2047, fuels monopoly fears

Badung — The Bali High Court has ordered Badung Regency to extend its exclusive cooperation with PT Bali Towerindo Sentra Tbk for another 20 years, until 7 May 2047, in a ruling that has triggered competition concerns over telecommunications tower infrastructure in one of Bali’s main economic hubs.

The appellate decision, recorded as Bali High Court ruling No. 200/PDT/2026/PT DPS and dated 20 August 2026, arose from a dispute over an integrated telecommunications tower cooperation agreement signed between Badung Regency and Bali Towerindo on 7 May 2007. Multiple Indonesian media reports, citing case records from the Denpasar District Court’s case-tracking system, say the court declared that agreement valid and legally binding and found Badung in breach of its contractual obligations.

According to these reports, the court concluded that the regency government had committed wanprestasi, or default, in carrying out the 2007 cooperation pact. As a consequence, the High Court ordered Badung to continue its cooperation with Bali Towerindo and to extend the arrangement for 20 years from the original expiry, taking the contract through 7 May 2047.

Scope of the court orders

Coverage of the ruling indicates that the operative terms go beyond validating and extending the contract. The High Court ordered Badung Regency to dismantle telecommunications towers within its territory that are not owned by Bali Towerindo, effectively removing infrastructure operated by other tower companies.

The same decision bars the regency from issuing business licences or tower-related permits to any other party until the extended cooperation period ends in 2047, leaving Bali Towerindo as the sole permitted provider of telecommunications tower infrastructure in Badung. Industry-focused reports state that this could make Bali Towerindo the only tower operator in the regency for the duration of the extension, raising questions about network coverage and investment plans for 4G and 5G services.

The media accounts do not detail how many towers or operators would be affected or how existing mobile services would be maintained if towers owned by other companies are dismantled, but note that providers such as Mitratel, Sarana Menara and Tower Bersama have assets in Badung that could be impacted.

Competition concerns

The ruling has prompted scrutiny from Indonesia’s Ministry of Communication and Informatics’ Directorate General of Postal and Informatics Operations, known as Komdigi, and from industry associations. Komdigi officials have stressed that management of telecommunications infrastructure must adhere to principles of fair competition and must not result in monopolistic arrangements, in reference to the Badung case.

Reports cite Komdigi as referring to Indonesia’s Law No. 5 of 1999 on the prohibition of monopolistic practices and unfair business competition, as amended by Law No. 6 of 2023, and emphasising that both government policy and implementation of court decisions should align with that framework. However, the ministry has not publicly declared that the High Court ruling itself constitutes a violation of competition law, instead signalling support for maintaining open competition in tower infrastructure.

The Association of Telecommunications Tower Infrastructure Providers (Aspimtel) has also voiced concern, arguing that businesses compliant with regulations should have equal opportunities to operate and warning that exclusivity in tower provision could harm the broader ecosystem. Aspimtel representatives say they are monitoring developments and have opened discussions with the Business Competition Supervisory Commission (KPPU) to represent tower providers’ interests and support fair market access, including the possibility of providing testimony if required.

Badung’s legal response and unresolved issues

Following the High Court decision, Badung Regency has moved to challenge the ruling at the Supreme Court, with officials stating that the case has formally been brought to cassation. Local coverage reports that the regency is seeking a review of the orders that extend the cooperation, mandate dismantling of other towers and restrict permitting to a single company.

As of mid-September 2026, reports do not indicate whether the Supreme Court has registered or decided the cassation appeal, nor whether any interim measures have been granted that could delay enforcement of the High Court’s orders. Analysts and industry stakeholders note that a full assessment of the ruling’s compatibility with competition law would require examination of the complete judgment, the 2007 agreement and any subsequent review by KPPU or other competent authorities.

Sources

• detikInet (law and policy)
• Bisnis.com (technology)
• Investor.id (business)
• JPNN.com (news analysis)
• CNBC Indonesia
• Kontan.co.id (investment)