The Bali Observer

Friday, 6 November 2026

Bali enacts Perda 4/2026 to curb land conversion and nominee ownership

Bali has enacted Provincial Regulation No. 4 of 2026 to restrict conversion of productive farmland and ban nominee land ownership, a policy officials say is aimed at protecting food security, subak landscapes and sites such as the…

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Editor: Mursyid Sonsang

· Event date: · 5 min read

Denpasar — Bali has brought into force Regional Regulation No. 4 of 2026 on the control of productive agricultural land conversion and the prohibition of nominee land ownership, a measure officials and experts say is meant to safeguard food security and traditional farming landscapes, including the Jatiluwih World Heritage rice terraces in Tabanan.

The regulation, signed by Governor Wayan Koster on 24 February 2026, formally took effect on that date, according to provincial officials and local media reports. It provides a regional legal basis to restrict the shift of productive farmland into villas and other commercial properties and to ban land ownership schemes that use a local "borrowed name" on behalf of another party.

Provincial communications and explanatory articles describe the regulation as part of Bali’s strategy to maintain food sovereignty, reinforce protection of sustainable food-farming land and preserve agricultural culture, including the subak irrigation system that underpins many rice landscapes. Authorities have linked these goals to internationally recognised sites such as the Jatiluwih cultural landscape, which forms part of a UNESCO World Heritage property.

Scope and main controls

The full title of Perda No. 4/2026 is the Regional Regulation of Bali Province on the Control of Conversion of Productive Land and the Prohibition of Nominee Land Ownership. Provincial explanations define productive land as agricultural land used for food crops, horticulture and plantations, with strategic functions for food sovereignty, economic independence and ecological balance.

The regulation sets out mechanisms to control changes in land use from agriculture to non-agricultural purposes through spatial planning, permitting and supervision of space utilisation. It also introduces an explicit ban on nominee ownership, described as indirect control of land through the use of another person’s name, with the aim of preventing speculative acquisition and protecting local control over land.

Officials and commentators have framed the rules as a response to pressure from tourism and property development, where productive rice fields have been converted into villas and commercial projects. In discussions of implementation, Jatiluwih is cited as an example of a landscape where the regulation should guide community and investor decisions to maintain the integrity of rice terraces, irrigation networks, biodiversity and the farming culture tied to the Tri Hita Karana philosophy.

Enforcement and sanctions

The governor and provincial legislature have stated that regencies and cities in Bali must use Perda 4/2026 as a reference in their spatial planning and land-use decisions, with coordinated oversight expected from provincial, local and village-level institutions as well as subak organisations. Commentaries emphasise that the regulation should strengthen farmer welfare and support the resilience of subak institutions amid investment pressure.

Local media reports and policy articles outline a graduated set of administrative sanctions for violations, including written warnings, temporary suspension of activities, closure of locations, licence revocation, permit cancellation, demolition of buildings and restoration of the land’s agricultural function, along with administrative fines. Provincial discussions also note that criminal sanctions may be applied under relevant national laws for serious offences linked to land conversion or nominee practices.

While operational details such as which specific agency leads investigations are not fully elaborated in public summaries, provincial sources stress that regency and city governments are obliged to integrate the regulation into their permitting and monitoring, and that community participation is considered important to detect and prevent improper land conversion.

National and local context

Bali’s regulation sits within Indonesia’s broader framework on sustainable food-farming land and rice-field conversion, including Law No. 41 of 2009 on the protection of sustainable food-farming land, Government Regulation No. 1 of 2011 on its designation and conversion, and Presidential Regulation No. 59 of 2019 on controlling rice-field conversion. Provincial commentary presents Perda 4/2026 as an instrument to implement these national norms at the regional level while addressing local challenges such as nominee ownership and tourism-driven development.

In the context of Jatiluwih and other subak-based landscapes, agricultural economists and farmer representatives quoted in local reports argue that stronger land controls and a ban on nominee practices can help sustain farming culture, improve farmer welfare and deliver wider economic benefits by maintaining the attractiveness and ecological balance of Bali’s rural areas.

For investors and tourism operators, the regulation underscores the need for careful due diligence on land status, permitted uses and ownership structures. Conversions of productive land and arrangements where effective control is separated from legal title are now subject to tighter scrutiny and potential sanctions under the new provincial regime.

Sources

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