Bali Governor Defends Farmland Rules Amid Investment Pressure
Bali Regulation No. 4 of 2026 tightens controls on productive-land conversion and prohibits nominee ownership as investment and tourism pressure grows. The rules affect land use and property arrangements.
By Pandi Muktar
Editor: Mursyid Sonsang
· 2 min read
Denpasar — Bali Governor Wayan Koster has defended stronger protections for productive agricultural land as investment and tourism development continue to raise the economic value of land across the province. Bali Regulation No. 4 of 2026 controls the conversion of productive land and prohibits nominee land ownership arrangements.
The change comes as Bali seeks to manage economic growth without sacrificing farmland, water sources, ecosystems or the customary life of its communities. The regulation gives the province a framework for spatial planning, permits and supervision when agricultural land is proposed for non-agricultural use.
Why Bali’s land rule matters to foreign residents
For a foreign resident, the practical significance is that a local person’s name cannot lawfully be used as a nominee structure to provide indirect control of land. The rule also affects projects and property activity on productive agricultural land: conversion is subject to tighter controls, and violations can lead to administrative action including warnings, suspension of activities, closure, permit revocation or cancellation, demolition and restoration of the land’s agricultural function.
Productive land under the policy includes agricultural areas used for food crops, horticulture and plantations. Provincial officials say the measures are intended to support food security, protect Bali’s cultural landscape and prevent speculative or indirect control of land.
Koster has said that restricting conversion alone is insufficient if farmers lack an economic reason to keep their fields. The provincial government has therefore linked land protection to incentives and policies intended to make farming economically viable while investment continues.
Regencies and cities are expected to use Regulation No. 4 of 2026 as a reference in spatial planning and land-use decisions. Implementation involves provincial, local and village-level institutions, along with subak organisations, Bali’s traditional irrigation and farming communities.
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