Bali DPRD presses tight enforcement of new productive land and nominee ban

Denpasar — — Bali’s provincial legislature is pressing for tighter, village-level controls on the conversion of productive farmland and on nominee land ownership, following the enactment of a new regional regulation aimed at protecting agricultural landscapes and curbing speculative ownership.

The Bali DPRD has adopted a regulation titled Peraturan Daerah (Perda) Provinsi Bali Nomor 4 Tahun 2026 tentang Pengendalian Alih Fungsi Lahan Produktif dan Larangan Alih Kepemilikan Lahan Secara Nominee, which sets limits on the conversion of productive land and expressly bans nominee ownership schemes, according to local media reports and provincial information services.

Perda 4/2026 applies to productive land used for food crops, horticulture and plantations, and seeks to maintain Bali’s agricultural base in the face of rapid development and rising investment pressure in tourism and real estate.

Call for implementation down to village level

Agung Bagus Tri Candra Arka, coordinator of the DPRD special committee that examined the draft regulation, has highlighted the need for close coordination between the provincial and district or municipal governments and local authorities at the village level.

According to statements reported by Bali-based outlets, he has called for cooperation with village heads, customary village leaders, and subak irrigation organisations so that permit processes and construction activities involving productive land are monitored from the earliest stages.

He argued that building projects typically pass through local licensing and administrative procedures, making grassroots supervision central to enforcing restrictions on land conversion and nominee arrangements.

Farmer data, incentives and sanctions

The regulation requires more systematic data collection on active farmers and productive agricultural land, with the provincial Agriculture Agency and district or municipal services expected to help identify those who genuinely cultivate rice fields and other productive plots.

Local coverage indicates that the regulation provides for incentives to support farmers working on productive land, alongside administrative sanctions for parties that unlawfully convert productive areas or facilitate nominee ownership for foreign buyers.

Sanctions range from written warnings and temporary suspension of activities to closure of locations, revocation or cancellation of permits, demolition orders, restoration of land functions, withdrawal of incentives and administrative fines for offenders.

The provisions also target intermediaries, facilitators and any parties providing means for foreign nationals to gain control of land via nominee schemes, and allow for possible criminal proceedings under higher-level laws in serious cases.

Pressure on rice fields and subak

Provincial officials and legislators link the regulation to the continuing loss of rice fields in areas such as Badung Regency and Denpasar, where agricultural land has increasingly been converted into buildings, notably tourism accommodation and supporting infrastructure.

Bali-based commentators have described Perda 4/2026 as a strategic step to safeguard remaining farmland and strengthen the subak system, which underpins traditional irrigation and collective management of rice terraces in the province.

The regulation’s stated aims include ensuring food security, guaranteeing the availability of productive land, improving farmer welfare and protecting ecological balance, while preventing Bali’s agricultural regions from being overwhelmed by metropolitan-style urban expansion.

Implications for investors and communities

Businesses planning projects on productive land are expected to face closer scrutiny and tighter coordination requirements with local authorities, as the regulation reinforces the role of village, customary and subak institutions in monitoring land-use changes.

Farmers who meet the criteria as active cultivators of productive plots may be eligible for incentives, although the detailed mechanisms and amounts are set out in implementing arrangements rather than early public summaries.

For land buyers, particularly foreign nationals, the explicit ban on nominee ownership is designed to close off indirect control of productive land through “borrowed name” arrangements, and to channel investment into forms that comply with the province’s land-use and food security policies.

Provincial authorities have stated that regencies and municipalities must use Perda 4/2026 as a policy reference, integrating its rules into local planning and licensing so that protection of productive land and enforcement against nominee practices are applied consistently across Bali.

Sources

• NusaBali.com – Perda Pengendalian Alih Fungsi Lahan dan Larangan Praktik Nominee Resmi Berlaku
• WacanaBali – Tutup Celah Nominee dan Alih Fungsi Lahan, Koster: Tanah Bali Bukan untuk Disiasati
• Tarubali (Government of Bali) – Implementasi Kebijakan Pengendalian Alih Fungsi Lahan Produktif di Bali
• Bali Post – Upaya Pelindungan Lahan Pertanian Belum Optimal
• Detik Bali – DPRD Bali Sahkan Perda Pengendalian Alih Fungsi Lahan, Praktik Nominee Dilarang