Rules & land · Bali

Bali has lost over 10,000 ha of rice fields since 2017

Governor Wayan Koster shared figures on shrinking rice fields and pledged to keep restricting land conversion. The main tool is Provincial Regulation No. 4 of 2026.

News of Published in DOMA News: 2 min read

Key points

  • Rice fields fell from 78,626 ha in 2017 to 68,078 ha today.
  • Regulation No. 4/2026 restricts conversion of productive land and bans nominee schemes.
  • In July the governor put the rate of loss at about 700 ha a year.

The numbers

On 27 August 2026, Governor Wayan Koster met agriculture students from Udayana University in Denpasar. He said Bali's rice field area had shrunk from 78,626 hectares in 2017 to 68,078 hectares now.

A month earlier, at a seminar in Badung, Koster estimated farmland conversion at around 700 hectares a year. If that continues, he warned, food production and the subak irrigation system will be at risk.

The rules in force

The key document is Provincial Regulation (Perda) No. 4 of 2026. It restricts the conversion of productive land and prohibits transferring land rights through nominee owners.

Koster also pointed to Governor's Instruction No. 5 of 2025 banning farmland conversion, and Governor's Regulation No. 99 of 2018, which requires hotels and restaurants to buy local produce.

Other measures

The province has named regional state companies as buyers of harvests and as links between farmers and hotels, restaurants and cafes. The idea is to make farming pay well enough that owners keep their land.

Koster noted Bali's low farmer terms of trade index (NTP), which stood at 104.14 in March 2025 against 123.72 nationally. "Productive land is shrinking, subaks are under threat," he said.

The tourism industry's role

The governor urged hotels, restaurants and cafes to buy from local farmers. A youth-led Agriculture Expo took place in July 2026, and an agriculture festival is planned.

The July seminar in Badung, where Koster gave the 700-hectare figure, brought together 140 agricultural academics from 31 universities in eastern Indonesia.

What it means for investors

Rice fields around Ubud remain the main focus of enforcement. Buying a leasehold on land being converted out of farm use now carries the risk of refused permits and sanctions. A plot held by an Indonesian on behalf of a foreigner falls squarely under the ban in Regulation No. 4/2026. Check the zone in the RDTR and whose name is on the certificate.

Ask on WhatsApp

Q&A

Which Bali regulation bans nominee land arrangements?

Bali Provincial Regulation No. 4 of 2026. It restricts conversion of productive land and prohibits transferring land rights through nominees.

Source
Antara Bali, published August 27, 2026, language: Indonesian
Also checked: RRI Denpasar

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.