Rules & land · Bali

Bali enacts regulation on land conversion and nominee ban

Bali now has Provincial Regulation No. 4 of 2026, which restricts conversion of productive land and bans nominee arrangements. Experts doubt it will be enforced firmly.

News of Published in DOMA News: 2 min read

Key points

  • Regulation No. 4/2026 protects LP2B farmland and the subak irrigation system.
  • It explicitly bans transferring land rights through nominee owners.
  • Experts warn the rule could stay on paper without enforcement.

What was enacted

Bali province has enacted Regulation (Perda) No. 4 of 2026. It controls the conversion of productive land and prohibits transferring land rights through a nominee, meaning a front owner.

The aim is to protect LP2B land (protected farmland) and the traditional subak irrigation system from development and investment pressure.

Where the nominee issue came from

In September 2025, Deputy Governor I Nyoman Giri Prasta described the preparation of the document and the problems it targets.

These included foreign investors putting assets in the names of Indonesian citizens and land being converted with foreign money under local names. Officials also cited lost provincial tax revenue and contract marriages used to get around restrictions.

Expert doubts

Gede Wirata, a lecturer at Ngurah Rai University, welcomed the move but worries the document will become rules without firm enforcement.

Public policy analyst Umar Ibnu Alkhatab says it can only be judged by how it is applied. RRI describes the regulation as a response to rising development pressure on Bali's farmland.

The article does not set out the text in detail or list its sanctions and enforcement steps, so its practical effect should be assessed case by case.

How the regulation is being used

In July 2026 the province cited Regulation No. 4/2026 when it announced faster LP2B designation across all regencies.

In September 2026 Governor Wayan Koster personally oversaw the demolition of a villa in a Buleleng forest zone, where officials suspected a foreign investor had used a local name. He cited the regional regulation on controlling land conversion.

What it means for investors

Buying land in an Indonesian's name on behalf of a foreigner is now explicitly banned by provincial regulation. The lawful routes for a foreigner are a notarised leasehold or an own PT PMA company. If a seller suggests putting the land in a local's name, walk away. We check whose name is on the certificate and who signs the lease.

Ask on WhatsApp

Q&A

Can a foreigner buy Bali land in an Indonesian's name?

No. Provincial Regulation No. 4/2026 explicitly bans transferring land rights through nominees.

Source
RRI Denpasar, published March 6, 2026, language: Indonesian

Prepared by the DOMA editorial team from public reports, with the original source linked above. This is a news review, not legal or tax advice. Not a public offer.

We'll match a villa to your brief

Tell us your budget and goal and we'll send a shortlist with prices, floor plans and a yield calculation. No pushy calls.