The Bali Observer

Monday, 21 September 2026

Police seize 23 hectares of state land in Ungasan corruption probe

Indonesian anti-corruption police have seized about 23 hectares of state-owned land in Ungasan, Badung, valued at up to Rp4.8 trillion.

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Editor: Mursyid Sonsang

· Event date: · 4 min read

Open the larger photo. Archive photo: Umana Bali, LXR Hotels & Resorts.
Archive photo: Umana Bali, LXR Hotels & Resorts. · Photo: Victoria667 / Wikimedia Commons, CC BY-SA 4.0

Badung — — Indonesia’s anti-corruption police unit has seized around 230,450 square metres of state land in Ungasan, South Kuta, Badung, as part of an investigation into alleged corruption in the control of government assets valued at up to Rp4.8 trillion.

Korps Pemberantasan Tindak Pidana Korupsi (Kortastipidkor) of the National Police carried out the seizure on Thursday, 17 September 2026, targeting land recorded as a state asset under Certificate of Right of Use (Hak Pakai) No. 9/Ungasan.

The land, owned by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), lies in a premium tourism zone near Melasti Beach and has been under scrutiny over alleged illegal private control for more than a decade.

Purpose of the seizure

Brig. Gen. Indra Lutrianto, director for asset tracing and security (P2A) at Kortastipidkor, said the seizure was intended to preserve the land as evidence, safeguard the state asset and prevent any transfer or change in control while the investigation continues.

According to police statements quoted by several Indonesian outlets, the asset’s potential value based on appraisal is estimated at around Rp4.8 trillion, reflecting its location in a tourism area and its suitability for tourism or modern residential development.

Police and the Audit Board of Indonesia (BPK) are also reviewing provisional calculations that put the value of the asset for the 2014–2024 period at about Rp2.2 trillion, a figure that has not yet been set as a definitive measure of state financial losses.

Alleged problematic asset swap

The case centres on an alleged problematic ruislag, or asset swap, involving ATR/BPN and private company PT Marga Srikaton Dwipratama (MSD.

Police say MSD won a tender linked to the land and was required to provide a replacement asset by building facilities for ATR/BPN in Bali, but those replacement obligations are alleged not to have been completed, leaving the exchange unresolved.

Investigators are examining whether MSD has controlled the government land since around 2014, including by installing fences, signs and other physical markers on the site near Melasti Beach in Ungasan.

Witnesses and investigation focus

Kortastipidkor has questioned witnesses from the Ministry of ATR/BPN, the Bali provincial ATR/BPN office and private companies including PT MSD, as part of efforts to trace the asset’s history and the processes behind the tender and asset swap.

Media reports also note that police are reviewing civil litigation connected to the land and the use of internal ATR/BPN documents that may have been presented as proof that the asset swap was complete, despite alleged outstanding obligations.

As of mid‑September 2026, police had not publicly named any suspects and had stressed that both the Rp2.2 trillion provisional calculation and the Rp4.8 trillion appraisal figure should not be treated as final determinations of state losses.

Key figures and location

  • Land area: approximately 230,450 square metres, or just over 23 hectares.
  • Provisional valuation 2014–2024: about Rp2.2 trillion, under review with BPK.
  • Appraisal-based potential value: around Rp4.8 trillion.

The land is located in Ungasan, Kuta Selatan, Badung, roughly one kilometre from Melasti Beach according to police statements cited in local media, and is regarded as part of a “premium” tourism corridor in south Bali.

Next steps

During the investigation, the seizure secures the land as a state asset and evidence, while police and BPK continue to refine asset valuations and examine whether the long-running private control of the site violated corruption and asset-management laws.

Officials have indicated that further examinations of ATR/BPN officials and private parties are underway, but have not yet said whether any individuals or corporations will be designated as suspects or when a final calculation of state losses will be concluded.

Sources

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