Rules & land · Bali

Bali Perda 4/2026 bans nominee deals and building on farmland

Bali now has Regional Regulation (Perda) No. 4 of 2026. It restricts turning productive land into tourism sites and prohibits land transfers through nominee owners.

News of Published in DOMA News: 2 min read

Key points

  • Perda 4/2026 outlaws nominee land ownership structures
  • Hotels and restaurants are allowed only on dry, unproductive land
  • Sanctions were not detailed and experts question enforcement

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.

What it means for investors

Before buying a leasehold, confirm who actually controls the land and that no hidden third party stands behind the registered owner. Also check that the plot is not classed as productive farmland, because new rental construction there may be barred. We verify plot status and the chain of rights before a deal.

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Q&A

Can a villa be built on a rice field in Bali?

Under Bali Perda 4/2026, productive land cannot be converted for tourism use. Hotels and restaurants are allowed only on dry, unproductive land.

What is a nominee arrangement in Bali?

Land is registered to an Indonesian while a foreigner actually controls it. Perda 4/2026 explicitly prohibits such transfers.

Source
RRI Denpasar, published July 25, 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.

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