Rules & land · Bali

Bali governor bans farmland conversion with Instruction No. 5

Bali Governor's Instruction No. 5 of 2025 requires regents and the Denpasar mayor to reject conversion of farmland to other uses. Converting LP2B land can bring up to five years in prison under national law.

News of Published in DOMA News: 2 min read

Key points

  • The ban covers LP2B land and the baseline rice field area (LBS).
  • Regents must not change the status of this land in spatial plans.
  • Offenders face up to 5 years and a Rp 1 billion fine under Law No. 41/2009.

What is banned

On 3 December 2025, Bali Governor Wayan Koster issued Governor's Instruction (Ingub) No. 5 of 2025, which bans converting farmland to non-agricultural use.

It covers LP2B (protected food farmland) and LBS (the baseline rice field area). The instruction is addressed to all regents and the mayor of Denpasar and applies until a provincial regulation is enacted.

What regencies must do

Regency heads must reject applications to convert farmland. They must keep LP2B and LBS designations in place and not alter them in spatial planning documents.

Regencies are also told to enforce the law with community involvement and to offer incentives to farmers who keep their land.

Sanctions and background

Under Law No. 41 of 2009, as amended by Law No. 6 of 2023, converting LP2B land is punishable by up to five years in prison and a fine of up to Rp 1 billion. This applies to individuals, officials and companies.

A week earlier, Agrarian Minister Nusron Wahid announced a moratorium on farmland conversion in Bali. He said the island lost an average of 1,254 hectares a year and that LP2B made up only 62% of the rice field base in the RTRW plan, against a required 87%.

What came next

Minister Wahid also pledged to return previously converted land to farming and to summon all regency heads to enforce compliance.

In 2026 the province enacted Regulation No. 4/2026 on controlling productive land conversion and banning nominee deals, the document the governor's interim instruction had been waiting for.

What it means for investors

Buying a leasehold on a rice field in the hope it will later be rezoned is now riskier, because regencies are required to reject such requests. Liability can extend beyond the landowner to the company carrying out construction. Make sure the plot is already in a zone where a villa is allowed, not one that is expected to be rezoned.

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Q&A

What is the penalty for converting LP2B land in Indonesia?

Under Law No. 41/2009 as amended, up to five years in prison and a fine of up to Rp 1 billion for individuals, officials and companies.

Source
Antara Bali, published December 3, 2025, 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.

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