What the regulation says
The full title is Bali Regional Regulation No. 4 of 2026 on Controlling the Conversion of Productive Land and Prohibiting Nominee Land Ownership Transfers. A nominee structure is one where land is registered to an Indonesian citizen while a foreigner actually controls it.
Governor Wayan Koster summed up the core rule. Rice fields and other productive land may not be converted for the tourism industry. Hotels and restaurants can still be built, but only on dry or unproductive plots.
Scale of the problem
According to figures cited by the governor, Bali loses about 700 hectares of farmland every year. ANTARA, quoting the provincial government, reports that rice fields shrank from 78,626 hectares in 2017 to 68,078 hectares today. Badung, Denpasar, Gianyar and Tabanan are the most affected.
The regulation builds on Governor's Instruction No. 5 of 2025, which already barred converting agricultural land to other uses.
The enforcement question
Coverage of the regulation does not spell out penalties for violations. Experts interviewed by RRI in March welcomed the intent but warned that the rule could stay on paper without strict and even-handed enforcement.
So the real test is how authorities will review properties that already exist.
How it got here
After the September 2025 floods, the governor said licences for hotels, restaurants and modern retail on productive farmland would not be issued until a regulation was passed. Agrarian Minister Nusron Wahid called control over rice field conversion necessary and urgent at the time.
Separately, an anti-nominee regulation had been in preparation since September 2025. Deputy Governor I Nyoman Giri Prasta said it was aimed at foreigners who illegally control land and build villas without permits. Both issues are now combined in one document that applies across every regency in the province.